Advocate Not Liable To Verify Fake Documents Provided By Client For Firm Registration To Evade Tax: Jharkhand High Court

The Jharkhand High Court stated that an advocate is not liable to verify fake documents provided by a client for registration of a firm to evade tax.The bench of Justice Anil Kumar Choudhary was dealing with a case where an advocate had moved a petition for anticipatory bail in a case registered under sections 406/420/468/471/120B of the Indian Penal Code and under Section 132 (1) (b)/131 (1) (e)/132 (1) (1) of Jharkhand Goods and Services Tax (JGST).In this case, the petitioner who is a tax practitioner facilitated GST registration of the co-accused. The allegation against the petitioner is that in connivance with the co-accused he has facilitated for registration of a proprietary firm on the basis of fake and vague documents to evade government taxes. The advocate-petitioner submitted that it is neither the duty nor the responsibility of the petitioner to verify the documents which were furnished by his client to him.The petitioner submitted that Input Tax Credit is against the co-accused and there is no allegation against the petitioner of having any share of the same. It is also submitted that the petitioner is still an Advocate by profession and an established tax practitioner, hence there is no chance of his absconding. It is then submitted that the petitioner undertakes to furnish sufficient security including cash security and also undertakes to cooperate with the investigation of the case. Hence, it was submitted that the petitioner be given the privilege of anticipatory bail.The bench thus opined that “it is a fit case where the above-named petitioner be given the privilege of anticipatory bail. Hence, in the event of his arrest or surrender within a period of six weeks from the date of this order, he shall be released on bail on depositing cash security of Rs. 50,000/-and on furnishing bail bond of Rs. 25,000/- with two sureties of the like amount each.to the satisfaction of J.M. 1st Class, Jamshedpur.”In view of the above, the bench granted anticipatory bail to the advocate.Case Title: Satya Prakash Singh v. The State of JharkhandLL Citation: 2025 LiveLaw (Jha) 6Case Number: A.B.A. No. 2096of 2024Counsel for Petitioner/ Assessee: Amit Kr. DasCounsel for Respondent/ Department: Pankaj KumarClick Here To Read/Download Order

Advocate Not Liable To Verify Fake Documents Provided By Client For Firm Registration To Evade Tax: Jharkhand High Court

Mehak Dhiman

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