The Central Board of Direct Taxes, CBDT has asked its field officers to fast track prosecution cases against shell companies which claimed bogus long-term capital gains.
In a letter to Principal Chief Commissioner of Income Tax, CBDT Chairman Sushil Chandra has called for fast track prosecution proceedings in cases where the Settlement Commission has rejected entry operators who have claimed advantages of long-term capital gains.
Shell companies are characterised by nominal paid-up capital, high reserves and surplus on account of receipt of high share premium, investment in unlisted companies, no dividend income and high cash in hand.
The Prime Minister’s Office had, last month, set up a task force under Revenue Secretary Hasmukh Adhia comprising members from central probe and enforcement agencies to monitor action against deviant shell companies.
The Tax department said, there are about 15 lakh registered companies in India of which only 6 lakh file annual returns. (NewsonAir)