The ministry of corporate affairs (MCA) has sought details from the Income-Tax department of companies against whom tax-evasion charges have been framed, reports Economic Times.

The ministry feels that scanning those records could unearth cases of violation of company law.

While tax evasion can be settled through payment of penalty, many offences under company law are punishable as imprisonment for top managers.

Experts do find logic in the move as evasion of taxes often result in distortion of numbers in the company`s financial results, an activity which constitutes an offence under the company law.

Many companies on being caught evading taxes, pay the penalty to the authorities and then shift the burden of it to their shareholders by fudging their financial records.

A recent instance is the case of Mumbai-based Elder Pharma where the ministry procured details from the I-T department to initiate action against the company.

The company, which is now being probed by the ministry`s Serious Fraud Investigation Office (SFIO) for altering its financial records, was earlier caught evading taxes.