Income Tax department steps-up actions under Prohibition of Benami Property Transactions Act
GN Bureau | January 11, 2018
Provisional attachment has been made by the Income Tax department in more than 900 cases of properties under the Prohibition of Benami Property Transactions Act, which came into force November 1, 2016.
These attachments include plots of land, flats, shops, jewellery, vehicles, deposits in bank accounts and fixed deposits. The value of properties under attachment is more than Rs. 3,500 crore, including immovable properties of more than Rs. 2,900 crore, said a press release.
In five cases, the provisional attachments of benami properties, amounting to more than Rs. 150 crore have been confirmed by the adjudicating authority. In one such case, it was established that a real estate company had acquired about 50 acres of land, valued at more than Rs.110 crore, using the names of certain persons of no means as benamidars. This was corroborated from the sellers of the land as well as the brokers involved.
In another case, post demonetisation, two assessees were found depositing demonetised currency into multiple bank accounts in the names of their employees, associates to be ultimately remitted to their bank accounts. The total amount attempted to be remitted to the beneficial owners was about Rs. 39 crore.
In yet another case, cash of Rs. 1.11 crore was intercepted from a vehicle with a person who denied the ownership of the cash. Subsequently, no one claimed ownership of the cash and it was held to be benami property.
Earlier, the income tax department had stepped-up actions under the Prohibition of Benami Property Transactions Act, which provides for provisional attachment and subsequent confiscation of benami properties.
It also allows for prosecution, which may result in rigorous imprisonment up to 7 years and fine upto 25 percent of fair market value of the property.
The department had set-up 24 dedicated Benami Prohibition Units under its investigation directorates all over India in May, 2017 to ensure swift action in respect of benami properties.
Demobilization, like its predecessor – demonetization, is another decision gone bad in implementation. In both instances a careful public administrative action through its governance systems could have saved the magnitude of impact particularly on the most vulnerable sections of the society. Th
In a bid to break the “chain of transmission” of the deadly Covid-19, India, a country with more than 1.3 billion population, observed a voluntary ‘Janata Curfew’ on March 22. This has been followed by a 21-day, nationwide lockdown from March 24. Prime minister Narendra Modi also re
To take speedy decisions on research and development for Sars-Cov-2 virus and COVID-19, the government has constituted a Science and Technology Empowered Committee. The committee, set up on March 29 and chaired by Niti Aayog member, professor Vinod Paul and professor K Vijay Raghavan, princi
Covid-19 may turn out to be the last straw that broke the camel’s back so far as the real estate sector is concerned. It broke out at a time when pundits were estimating the GDP to be hovering around 2.5% with unprecedent levels of unemployment. This itself was a good indicator that the real estate s
As COVID -19 cases continue to rise amid a 21-day lockdown, the centre and the states are proactively taking measures to provide aid to the underprivileged and the needy during this unprecedented situation. By Sunday morning, India had registered 27
In the thick of battle with the deadly coronavirus, India on March announced a 21-day lockdown till April 14 in its bid to control the spread of virus which has so far led to 10 people’s death and over 600 others falling sick across the country. As per experts, India, which is in the second stage of