One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.

Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.

Priya Sharma, a 24-year-old college student from Koramangala, Bangalore, approached me with a shocking discovery. While attempting to apply for a PAN card for her first internship, she found that the Income Tax Department’s database already showed a PAN card issued against her Aadhaar number. Priya had never applied for any PAN card, never had any income, and never filed any Income Tax Returns. She was completely unaware of this PAN card’s existence.

Upon investigation, we discovered that someone had fraudulently used her Aadhaar details to obtain a PAN card and had been filing ITRs claiming income of Rs. 8 lakhs annually. This was clearly a case of identity theft and document fraud. The perpetrator was using her PAN for tax evasion purposes, creating fake income statements, and potentially involving her in money laundering activities without her knowledge.

Advice in Such Cases

Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation to come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

File a complaint immediately with the Cyber Crime Police Station in your jurisdiction. Document fraud involving Aadhaar and PAN requires immediate police intervention. Contact the Income Tax Department’s grievance cell and submit a formal complaint about the fraudulent PAN usage. Preserve all evidence including screenshots, official communications, and your original Aadhaar card as proof of identity theft.

Applicable Sections of Law

Under the Bharatiya Nyaya Sanhita (BNS), several sections apply to such identity theft cases. Section 318 deals with cheating and dishonestly inducing delivery of property, which covers fraudulent PAN applications. Section 336 addresses forgery of documents, applicable when someone forges your signature or details for PAN application. Section 340 covers using forged documents as genuine, relevant when the fraudulent PAN is used for financial transactions.

Under the Bharatiya Nagarik Suraksha Sanhita (BNSS), Section 173 provides for filing complaints in such cases, while Section 35 allows for investigation of cybercrimes involving identity theft. The Information Technology Act also provides additional remedies under Section 66C for identity theft.

Relevant Legal Precedents

Various High Courts have established that identity theft involving government documents like PAN and Aadhaar constitutes serious fraud requiring immediate investigation. Courts have held that victims are not liable for fraudulent activities conducted using their stolen identity, provided they report the crime promptly. The principle of “stolen identity defense” has been recognized, protecting genuine victims from tax liabilities arising from fraudulent use of their documents.

If you need specific judgement references for your case, you can contact Adv. Sudhir Rao on his helpline numbers for detailed legal research and citations.

If You Are the Complainant

• File an FIR at the nearest Cyber Crime Police Station immediately
• Submit a detailed complaint to the Income Tax Department’s Assessing Officer
• Apply for PAN card cancellation through proper channels with supporting documents
• Request the UIDAI to check if your Aadhaar has been compromised in other ways
• Maintain detailed records of all communications and official responses

If You Are the Victim

• Immediately contact the Income Tax helpline and report the fraudulent PAN
• File a police complaint within 24 hours of discovering the fraud
• Submit an affidavit stating you never applied for the PAN card
• Request immediate freezing of the fraudulent PAN to prevent further misuse
• Monitor your credit reports and financial records for other unauthorized activities

How the Police Behave in Such Cases

Police typically treat identity theft cases seriously, especially involving government documents. They will register an FIR under relevant sections of BNS and IT Act. Investigation usually involves tracing the source of the fraudulent application, checking CCTV footage from service centers, and analyzing digital trails. Police may coordinate with Income Tax authorities and UIDAI for comprehensive investigation. However, the process can be slow, requiring consistent follow-up from the victim.

FAQs People Normally Have

Will I be liable for taxes on the fraudulent income? No, once you prove the PAN was obtained fraudulently, you won’t be liable for taxes on income you never earned.

How long does PAN cancellation take? The process typically takes 2-3 months after filing proper complaints and providing necessary documentation.

Can I apply for a new PAN immediately? You should wait until the fraudulent PAN is cancelled to avoid complications with duplicate PAN issues.

Will this affect my credit score? It might temporarily, but once resolved through proper legal channels, your credit profile will be cleared.

What Evidence Is Required?

• Original Aadhaar card and authenticated copies
• Screenshots of PAN database showing the fraudulent entry
• Bank statements proving no income corresponding to fraudulent ITR filings
• Educational certificates proving student status during the fraud period
• Witness statements from family members confirming you never applied for PAN
• Any correspondence received from Income Tax Department
• Digital evidence like email trails or SMS received regarding the PAN

How Long Will the Investigation Take?

Police investigation typically takes 3-6 months depending on the complexity and evidence available. Income Tax Department’s internal inquiry may take 2-4 months. Overall resolution, including PAN cancellation and clearance of fraudulent records, usually takes 6-12 months. The timeline can be reduced with proper legal representation and consistent follow-up with authorities. Having all required documents ready accelerates the process significantly.

Advocate Sudhir Rao, Supreme Court of India