MUMBAI: The tax office is reopening old records of many companies that have wound up and no longer exist in the books of the government something the revenue department has rarely done in the past.
Former directors of such closely-held private companies, which have received tax notices along with the official liquidators, fear they could be suddenly saddled with unforeseen liabilities. While opening new private companies and shutting down old ones have often been a ploy to move unaccounted money, some of the companies set up to carry out bona fide businesses which subsequently failed have also come under the glare of the income tax department.
Till now, the department has typically stayed away from companies to which it had issued n…
Read the full article at: http://economictimes.indiatimes.com/news/economy/policy/i-t-department-goes-after-defunct-companies-for-tax-frauds/articleshow/60724618.cms