Skip to main content

Blog # 11. Attachments under Prohibition of Benami Propert Tranactions Act, 1988 and Initial Response

Under the provisions of Prohibition of Benami Property Transactions Act, 1988, the attachments are made as per the provisions of Section 24 by an Initiating Officer. 
Who are Initiating Officers ?
As per Section 2(19) of Prohibition of Benami Property Transactions Act, 1988, initiating officer means an Assistant Commissioner or Deputy Commissioner as defined in clause (9A) and (19A) respectively of section 2 of the Income Tax Act, 1961.
As per Section 2(9A) of the Income Tax Act, 1961 , "Assistant Commissioner" means a person appointed to be an Assistant Commissioner of Income-tax  [or a Deputy Commissioner of Income-tax] under sub-section (1) of section 117;] And As per Section 2(19A) of The Income Tax Act, 1961, "Deputy Commissioner" means a person appointed to be a Deputy Commissioner of Income-tax under sub-section (1) of section 117;
Accordingly, proceedings under The Prohibition of Benami Property Act, 1988 as amended by the present Modi Government can be initiated by an Assistant Commissioner or Deputy Commissioners of Income Tax. After receiving evidences/material against the benamidar or beneficial owner, if the initiating officer has reasons to believe that the case falls within the purview of Prohibition of Benami Property Transactions Act, 1988 then :-
( 1 )    Record reasons in writing that any person is a benamidar.
( 2 )    Issue notice u/s 24(1) of the Act to the Benamidar asking as to why the property should not treated as benami property.
( 3 )    Notice to Beneficial Owner as well if his identity is known.
( 4 )    If Initiating officer feels that the person who is in possession of Benami Property may alienate such property, then he may attach such property. Procedure of Attaching such property:-
Step No.1         à Previous Approval from Approving Authority.
Step No. II.  à Pass Provisional Attachment Order attaching such Benami property for a period of maximum of 90 days from the date of issuing notice to benamidar.
( 5 )     Thereafter he makes such inquiries, calls for reports or evidences as he deems fit and taking in to account all the materials, if he opines that the property is benami then he may continue such provisional Attachment beyond a period of 90 days or attaches the property if the same has not been attached before 90 days of issuing notice u/s 24(1) of the Act, after :-
Ø  Taking prior approval of Approving Authority.
Ø  Has to again pass an order continuing the provisional attachment. The same shall continue till the time specified in such order or till the order is passed by the Adjudicating Authority.
Ø  Draw up statement of the case and refers it to the Adjudicating Authority.
Or

Revokes provisional attachment after passing an order in writing after taking approval from Approving Authority if he is satisfied that the transaction

Initial Response to be taken if you receive notice u/s 24(1) of the Act :-
( 1 )    Request Initiating Officer to provide materials against you.
( 2 )    Request for the reasons recorded for initiating the proceedings.

Initial Response to be taken in case of proceedings before the Adjudication Authority :
Request for the Case Statement submitted by Initiating Officer.





Comments

Post a Comment

Popular posts from this blog

Blog # 26. Concept of Real Income under the Income Tax Act, 1961

  What is Income ? Before understanding the concept of Real Income, it shall be important to go through the the term “Income” and “Real”. Income is defined under S.2(24) of the Income Tax Act, 1961(Hereinafter referred as “the Act”). The definition as provided under the Act is an inclusive definition so as to cover up all the usual as well as unusual items, however it certainly does not define it in a way that we can be said it to be precise. The same can be understood by various Judge Made Laws. The first and the lead amongst them is a Privy Council Judgment in the case of Kamakshya Narain   Singh CIT 11 ITR 513 (PC)         Facts The assesse was a “Raja” gave mining lease and He received payments by way of royalty for coal mines leased out to various lessees. The case of the Assessee was that this royalty income received by the Assessee was nothing but the recoupment of the resources which shall be exhausted by the end of the le...
26 comments
Read more

Blog # 20. S.53A of the Transfer of Property Act, 1882 and Related Laws

Section 53A of the Transfer of Property Act. 1882 is as under :- “53A. Part performance. – Where any person contracts to transfer for consideration any immovable property by writing signed by him or on his behalf from which the terms necessary to constitute the transfer can be ascertained with reasonable certainty, and the transferee has, in part performance of the contract, taken possession of the property or any pat thereof, or the transferee, being already in possession, continues in possession in part performance of the contract and has done some act in furtherance of the contract, and the transferee has performed or is willing to perform his part of the contract, then, notwithstanding that [***] where there is an instrument of transfer, that the transfer has not been completed in the manner prescribed therefor by the law for the time being in force, the transferor or any person claiming under him shall be debarred from enforcing against the transferee and persons ...
11 comments
Read more

Blog # 28. Principles of Natural Justice In Indian Constitution

In The Constitution of India, nowhere the expression Natural Justice is used. However, golden thread of natural justice sagaciously passed through the body of Indian constitution. Preamble of the constitution includes the words, ‘Justice Social, Economic and political’ liberty of thought, belief, worship... And equality of status and of opportunity, which not only ensures  fairness in social and economical activities of the people but also acts as shield to individuals liberty against the arbitrary action which is the base for principles of Natural Justice. Apart from preamble Art 14 ensures equality before law and equal protection of law to the citizen of India. Art 14 which strike at the root of arbitrariness and Art 21 guarantees right to life and liberty which is the fundamental provision to protect liberty and ensure life with dignity. Art 22 guarantees natural justice and provision of fair hearing to the arrested person. Directive principles of state Policy specially Art...
Post a Comment
Read more