Jharkhand High Court Grants Anticipatory Bail To Advocate Accused Of Not Verifying Client’s Documents In Tax Evasion Case
A tax practitioner, was accused of assisting a co-accused in the registration of a proprietary firm using fraudulent documents, allegedly to evade taxes.

The Jharkhand High Court granted anticipatory bail to an advocate who was accused of not verifying the authenticity of documents provided by a client, particularly in cases where the documents are allegedly forged to facilitate the registration of a firm for tax evasion purposes.
The Court was addressing a petition for anticipatory bail filed by an advocate involved in a case registered under several provisions of the Indian Penal Code, including sections 406 (criminal breach of trust), 420 (cheating), 468 (forgery), 471 (using forged documents), and 120B (criminal conspiracy), along with sections of the Jharkhand Goods and Services Tax (JGST) Act related to tax evasion.
In this case, the petitioner, a tax practitioner, was accused of assisting a co-accused in the registration of a proprietary firm using fraudulent documents, allegedly to evade taxes. The petitioner was accused of facilitating the Goods and Services Tax (GST) registration based on these fake and vague documents.
The bench of Justice Anil Kumar Choudhary said, “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.”
The advocate argued that it was not his duty to verify the authenticity of the documents provided by his client. He contended that his role was limited to providing legal and tax-related services, and it was not his responsibility to question or check the legitimacy of the documents submitted by the client.
The advocate further stated that the allegations of evading taxes through the Input Tax Credit (ITC) applied to the co-accused and not to him directly. He emphasized that there was no evidence suggesting his involvement in any financial gain from the alleged tax evasion. The advocate also pointed out that he was a practicing lawyer and an established tax practitioner, with no intention to abscond. He offered to provide sufficient security, including cash security, and assured the court of his full cooperation with the investigation.
The Court noted that the petitioner had presented reasonable grounds for his request and undertook to cooperate with the investigation. The bench directed that, in the event of his arrest or surrender within six weeks, the petitioner should be released on bail upon depositing a cash security of Rs. 50,000 and furnishing a bail bond of Rs. 25,000, along with two sureties of the same amount. The release would be subject to the satisfaction of the Judicial Magistrate First Class (J.M. 1st Class) in Jamshedpur.
Cause Title: Satya Prakash Singh v. The State of Jharkhand & Anr.
Appearance:
Petitioner: Advocate Amit Kr. Das
Respondents: Advocates Pankaj Kumar, Ranjan Kumar