Shell companies under our radar: CBDT chief

We will strike shell firms from MCA website and serve it a notice, said Chandra

Several dubious companies were under the radar of the Central Board of Direct Taxes (CBDT) and if found to be shell firms, they would be removed from the website of Ministry of Corporate Affairs (MCA), a top official said today.

CBDT chairman Sushil Chandra said several such companies were being examined by the statutory authority, working under department of Revenue in the Ministry of Finance.

"There are many companies which are currently being examined by 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 MCA website and serve it a notice," said Chandra told reporters here.

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

"We will not allow any company to be operated as a shell firm. We will take action against such firms," he said.

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.