CBDT Directive Reg Verification Of Suspicious Transactions

The CBDT has issued a directive dated 28th March 2019 on the subject of verification of suspicious transactions in case of struck-off companies. Field authorities have been directed to verify deposits/withdrawals from the bank accounts of companies during the process of striking down and just before that especially during the period of demonetisation to check possible misuse of such companies for money-laundering activities

F. No. 225/442/2018/ITA-II
Government of India
Ministry of Finance
Department of Revenue (CBDT)
Room No. 245-A, North Block, New Delhi,
the 28th of March, 2019

To

All Pr. Chief-Commissioners of Income Tax

Sir/Madam,

Subject: Verification of suspicious transactions in case of struck-off companies-reg. Kindly refer to the above.

In the last few years, Registrar of Companies (RoCs), across the country, have taken action against a number of companies under section 248(5) of the Companies Act, 2013 by removing their names from the Register of Companies.

2. To check possible misuse of such companies for money-laundering activities, the Board desires that the field authorities may verify deposits/withdrawals from the bank accounts of such companies during the process of striking down and just before that especially during the period of demonetisation. Information regarding the struck-off companies may be taken from the website of the Ministry of Corporate Affairs by the 0/o concerned Pr. Chief-Commissioner and disseminated to the field authorities Pr. CIT/CIT wise. Details regarding bank-account(s) of a particular company may be compiled on the basis of information contained in the Income-tax returns. Thereafter, verification from bank(s) may be made under provisions of section 133(6) of the Income-tax Act, 1961.

3. In cases 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 the struck off company by filing an appeal before the National Company Law Tribunal (NCLT).

4. The Board desires that the exercise of verification in already struck off companies may be completed in a time bound manner and positive results of verification, if any, may also be brought to the notice of the Board. Further, in future, the process may continue to be used to monitor indulgence of companies in money-laundering activities which are proposed to be struck-off by the RoC. If such transactions are detected in a particular company, then, we may bring it to the notice of the RoC duly within the proposed timeframe of one month during which objections can be filed against the proposal to strike-off a company.

5. This issues with the approval of Chairman, CBDT.

Yours faithfully,

Under Secretary (I A-II)