Noose tightens for shell firms as I-T to file NCLT suits

CBDT tells tax sleuths to file petitions by Aug 31 66% of registered cos are active: Govt

The Central Board of Direct Taxes (CBDT) has directed the Income Tax Department to ensure filing all its petitions before the NCLT by next month to recover due taxes worth crores of rupees from a number of de-registered shell or dummy companies.

The policy-making body of the tax department has issued the directive as part of the action plan unveiled recently.

“A large number of companies have been struck off from the records of the ROC (registrar of companies) during last year. In several cases of such companies, petitions for restoration of registration are required to be filed before the NCLT so as to be able to pursue recovery of demands raised in their cases.

"Assessing officers must identify all such cases at the earliest and ensure filing of petitions by August 31, 2018," the action plan said.

The Central Board of Direct Taxes (CBDT), in May, had directed the tax department to form a special team of officers to complete the task of filing these petitions in various NCLT (national company law tribunal) benches across the country. The CBDT took action as it was concerned over crores of rupees of its "legitimate" taxes being stuck.

Earlier the CBDT had written a letter to all its regional chiefs stating that the tax department is an "aggrieved creditor" vis-avis these struck off shell companies and the taxman should hence undertake all efforts to file these petitions to get its dues from them.

The CBDT believes that the appeals for "restoration" of these firms are required to recover tax dues and "protect the legitimate interests of revenue". NEW DELHI: Nearly 66 per cent of 17.79 lakh firms registered in the country were active at the end of June, official data showed amid the government continuing its clampdown on shell entities. Latest data from the corporate affairs ministry showed that there were over 11.89 lakh active companies as on June 30. Generally, active companies are those carrying out normal business activities and make their statutory filings on time. Intensifying the crackdown on illicit fund flows, the ministry struck off names of around 2.26 lakh companies last fiscal. Out of the total number of 17.79 lakh registered companies, 5.43 lakh were closed as on June-end and 1,390 were classified as dormant. As many as 38,858 companies were in the process of being struck-off while 6,117 were under liquidation. Among those struck off, 103 companies were in the process of being re-activated, as per the data.