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.

Also, private companies as majority shareholders, low turnover and operating income, nominal expenses, nominal statutory payments and stock in trade, minimum fixed asset are some of the other traits of shell companies.

The CBDT, which is the apex policy making body of the I-T department, had in the beginning of the current fiscal forwarded to field officers a list of cases in which prosecution could be filed.

Besides, a list of potential cases of prosecution for TDS default was uploaded on the Tax Deducted at Source (TDS) portal in October, 2016.

"The figures of prosecution are not being compiled from all the charges within your region and reported to the Board.

Complete and correct reports in this regard should be submitted to the Board after taking into account data from Investigation Directorate, Central TDS, LTU, International Taxation," Chandra said in the letter.

(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)