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Blog # 11. Attachments under Prohibition of Benami Propert Tranactions Act, 1988 and Initial Response
2 min read1 viewsby Advocate Mohit Balani
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…
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.
This article is published for information. It is a general discussion of the law as the author understands it, it is not legal advice, and it must not be relied upon in place of advice on the facts of a particular matter.