"The income tax departments would now track investments by these companies. "These could be small firms which are engaged in honest business, but there could be some which are a potential threat. We have to look into the data. "Nangia & Co Managing Partner Rakesh Nangia said though the amendment has been brought about to prevent abuse by shell companies/benami properties, checks similar to those placed in the law for invoking GAAR, should be in place to avoid genuine hardship. "Though the taxman may be driven by compulsions to ensure proper tax compliance, care must be taken while taking such action.

Source: Economic Times February 12, 2018 12:00 UTC