The Central Board of Direct Taxes (CBDT) has directed the income tax authorities to investigate the financial transactions of three lakh companies whose registration was canceled by the government. The government had taken action against these companies for tax evasion and money laundering. Especially during the blockade, many of these companies are involved in suspicious transactions.
The Board has asked the Income Tax Department's offices to do this special work. CBDT said in the correspondence, "The Board wants to investigate the withdrawal and deposit from the bank accounts of the Income Tax office companies to find out the possible misuse of these companies in the money laundering activities." Especially, during the process of cancellation of registration of companies, before the cancellation, financial transactions should be investigated.
CBDT is the policy-making body for the Income Tax Department. A senior official said that the board has information that many of these companies are suspected to be involved in tax-related crimes. Once this is proved, the Income Tax Department will initiate action against companies to indulge in tax evasion and money laundering.
He said that cases of money laundering will also be sent to the Enforcement Directorate (ED). The CBDT said, "If the company or the person's suspicious transaction is detected, then the appeal to the National Company Law Tribunal (NCLT) will be sought for the restoration of the company so that appropriate action can be taken as per the provisions of the Income Tax Act.
The CBDT has asked the tax officials to gather information of these companies present on the website of the Corporate Affairs Ministry and then ask them to investigate their income tax returns and check the bank about their financial transactions.
