Blackmoney crackdown: Shell companies under CBDT radar

The Central Board of Direct Taxes (CBDT) is examining several dubious companies and they would be removed from the website of Ministry of Corporate Affairs (MCA) if found to be shell firms.

“We will not allow any company to be operated as a shell firm. We will take action against such firms,” CBDT chairman Sushil Chandra said on Friday.

He said several such companies were under the scanner of the statutory authority, working under Department of Revenue in the Ministry of Finance.

“There are many companies which are currently being examined by the CBDT through a committee to check if they are legitimate or are being operated as shell companies.

“If a firm is found to be a shell firm, we will strike it off from Ministry of Corporate Affairs (MCA) website and serve it a notice,” said Chandra told reporters in Ahmedabad.

Chandra was invited here by the Gujarat Chamber of Commerce and Industry (GCCI) for felicitation.

In his speech at the function, Chandra said CBDT does not believe in intrusive action when it comes to the ordinary tax-payers.

However, he warned that the Income Tax Department will take action if people did not volunteer information.

“Each and every bank account is under our scanner to find out tax evasion. We urge people to come forward and declare their sources. If that does not happen, we have to take intrusive action against such persons who will then be called tax evaders,” he said.