The Central Board of Direct Taxes (CBDT) has asked the zonal heads of the income tax department to check whether companies that were struck off by Registrars of Companies (RoCs) over the last two years indulged in money-laundering activities during the demonetisation period (November 8-December 31, 2016).
“In case of detection of unusual transactions and beneficiaries thereof, appropriate action may be taken as per provisions of the Income-tax Act after seeking restoration of such companies by filing an appeal before the National Company Law Tribunal (NCLT),” CBDT said in a letter addressing principal chief commissioners.
During FY 18, the RoCs had removed over 2.25 lakh companies for failing to furnish financial statements and annual returns for more than two consecutive financial years. In the current fiscal, over 2.59 lakh more companies have been identified for being struck off.
The drive was meant to weed out suspected shell companies which acted as conduits for laundering black money.
The letter further said that exercise should be completed in a time-bound manner.
Further, the process should continue in the future to monitor ‘indulgence of companies in money-laundering activities which are proposed to be struck-off by RoC’.