Benami property transaction act

Benami Transactions (Prohibition) Act, 1988 has been amended and renamed as Prohibition
of Benami Property Transactions Act, 1988 (PBPT Act). Benami Act mainly focuses on finding
real names behind nameless real estate transactions. The amended act clearly defines the benami
transactions

1. PROHIBITION OF BENAMI
PROPERTY TRANSACTION
ACT, 1988
As amended by BenamiTransactions
(Prohibition) Amendment Act, 2016
1
Presented by: CA. Sanjay Kumar Agarwal
EmailId: [email protected]

2. The provisions of the Amendment Act has come
into force on 1st November, 2016. After coming into
effect of the Amendment Act, the existing Benami
Transactions (Prohibition) Act, 1988 has been
renamed as Prohibition of Benami Property
Transactions Act, 1988 (PBPT Act).
2

3. HISTORY
EARLIER 1988 BENAMI TRANSACTION PROHIBITION ACT –9
SECTIONS
NO RULES FOR 28 YEARS
IMPLEMENTATION, ACQUISITION PROCEDURES NOT
STRONG
3

4. AMENDMENT IN 2016
Whyamendmentafter28years&whynotnewact??
•Article20ofConstitution–penalprovisioncan'tbe
retrospective
•Ifnewlawwouldhavebeenenactedin2016&oldlawrepealed,
thenallbenamiviolationsinlast28yearswouldhavebeen
condoned.Henceonlyamendmentsdone.
4

5. DOES IT CLASH WITH PMLA, 2002?
•MONEYLAUNDERING -Proceedsofcrimearisingfrom
scheduledoffencesofabout29laws&
•BenamiActisnotonlyrelatedtopropertyfromproceedsof
crime
•Bothwillworkintandem.
5

6. PURPOSE OF THE ACT
•Toprohibitbenamitransactionsandtherighttorecoverproperty
heldbenamiandformattersconnectedtherewithorincidental
thereto.
•Curtailblackmoneytransactions&moneylaundering.
•Checkoncorruptionandunaccountedwealth.
6

7. 7

8. IMPORTANT DEFINITIONS :
•BENAMI PROPERTY:anypropertywhichisthesubjectmatterof
abenamitransactionandalsoincludestheproceedsfromsuchproperty.[(sec-2(8)]
•BENAMIDAR :apersonorafictitiousperson,asthecasemaybe,inwhosename
thebenamipropertyistransferredorheldandincludesapersonwholendshis
name.[(sec-2(10)]
•BENEFICIAL OWNER:aperson,whetherhisidentityisknownornot,forwhose
benefitthebenamipropertyisheldbyabenamidar.Heisthepersonwhoreceives
theincomeforhisownuseandenjoymentandassumestheriskandcontrol,i.e.,the
personwhoenjoysandassumesallattributesofownershipandexercisecomplete
discretionoverthedispositionoftheincome.[(sec-2(12)]
8

9. IMPORTANT DEFINITIONS….
•FIDUCIARY:Theterm‘fiduciary’referstoapersonhavingadutytoactforthe
benefitofanother,showinggoodfaithandcondour,wheresuchotherperson
resposestrustandspecialconfidenceinthepersonowingordischargingtheduty.
Theterm‘fiduciaryrelationship’isusedtodescribeasituationortransaction
whereoneperson(beneficiary)placescompleteconfidenceinanotherperson
(fiduciary)inregardtohisaffairs,businessortransaction/s.Thetermalsorefers
toapersonwhoholdsathingintrustforanother(beneficiary).Thefiduciaryis
expectedtoactinconfidenceandforthebenefitandadvantageofthebeneficiary,
andusegoodfaithandfairnessindealingwiththebeneficiaryorthethings
belongingtothebeneficiary.[CentralBoardofSecondaryEducationvsAditya
Bandopadhyay&Ors(2011)8SCC497(SC)]
CONTD…
9

10. IMPORTANT DEFINITIONS….
•KNOWN SOURCE:Exceptionisavailableifthepropertyheldthe
considerationisprovidedorpaidoutoftheknownsourcesofthe
individual.Sourcemeansoriginatingcause.
•CONSIDERATION :Considerationmeanssomethinginlieuofor
exchangeof.Considerationforpropertymustflowfromtheotherperson
thantheostensibleowner.Theconsiderationneednotbeincash.
CONTD…
10

11. IMPORTANT DEFINITIONS….
•BENEFIT:Anotherrequisiteofbenamitransactioniswheretheproperty
isheldfortheimmediateorfuturebenefit,directorindirect,oftheperson
whohasprovidedtheconsideration.Benefitmeansanyadvantage,gainor
improvementincondition.
•FAIRMARKET VALUE:thepricethatthepropertywouldordinarily
fetchonsaleintheopenmarketonthedateofthetransaction;andwhere
thepriceisnotascertainable,suchpriceasmaybedeterminedin
accordancewithsuchmannerasmaybeprescribed.(SeeRule-3)
CONTD…
11

12. DETERMINATION OF PRICE IN CERTAIN
CASES (RULE-3)
Forthepurposesofsection2(16)(ii)oftheAct,thepriceshallbedeterminedinthefollowing
manner,namely:—
•thepriceofunquotedequitysharesshallbethehigherof,—
oitscostofacquisition;
othefairmarketvalueofsuchequitysharesdetermined,onthedateoftransaction,bya
merchantbankeroranaccountantaspertheDiscountedFreeCashFlowmethod;and
othevalue,onthedateoftransaction,ofsuchequitysharesasdeterminedinthefollowing
manner,namely:—
•Thefairmarketvalueofunquotedequityshares=(A+B-L)×(PV)/(PE).
12

13. DETERMINATION OF PRICE IN CERTAIN CASES….
•A=bookvalueofalltheassets(otherthanbullion,jewellery,preciousstone,artisticwork,shares,
securitiesandimmovableproperty)asreducedby,-(i)anyamountofincome-taxpaid,ifany,less
theamountofincome-taxrefundclaimed,ifany,and(ii)anyamountshownasassetincluding
theunamortisedamountofdeferredexpenditurewhichdoesnotrepresentthevalueofanyasset;
•B=thepricethatthebullion,jewellery,preciousstone,artisticwork,shares,securitiesand
immovablepropertywouldordinarilyfetchonsaleintheopenmarketonthedateoftransaction;
•L=bookvalueofliabilities,butnotincludingthefollowingamounts,namely:—
othepaid-upcapitalinrespectofequityshares;
otheamountsetapartforpaymentofdividendsonpreferencesharesandequityshares;
oreservesandsurplus,bywhatevernamecalled,eveniftheresultingfigureisnegative,other
thanthosesetaparttowardsdepreciation;
CONTD…
13

14. DETERMINATION OF PRICE IN CERTAIN CASES….
oanyamountrepresentingprovisionfortaxation,otherthanamountofincome-taxpaid,ifany,
lesstheamountofincome-taxclaimedasrefund,ifany,totheextentoftheexcessoverthetax
payablewithreferencetothebookprofitsinaccordancewiththelawapplicablethereto;
oanyamountrepresentingprovisionsmadeformeetingliabilities,otherthanascertained
liabilities;
oanyamountrepresentingcontingentliabilitiesotherthanarrearsofdividendspayableinrespect
ofcumulativepreferenceshares;
•PE=totalamountofpaidupequitysharecapitalasshowninthebalance-sheet;
•PV=thepaidupvalueofsuchequityshares;
CONTD…
14

15. MEANING OF PROPERTY
[SEC-2(26)]
•Assetsofanykind,whethermovableorimmovable,tangibleorintangible,
corporealorincorporealandtoincludeanyrightorinterestorlegal
documentsorinstrumentsevidencingtitletoorinterestintheproperty
andwherethepropertyiscapableofconversionintosomeotherform,
thenthepropertyintheconvertedformandalsoincludestheproceeds
fromtheproperty.
15

16. MEANING OF PROPERTY….
TheSupremeCourtinJilubhaiNanbhaiKhacharvsStateofGujarat,
AIR1995SC142held:
“Propertyinlegalsensemeansanaggregateofrightswhichare
guaranteedandprotectedbylaw.Itextendstoeveryspeciesofvaluable
rightandinterest,moreparticularly,ownershipandexclusiverighttoa
thing,therighttodisposeofthethingineverylegalway,topossessit,
touseitandtoexcludeeveryoneelsefrominterferingwithit.The
dominionorindefiniterightofuseordispositionwhichonemay
lawfullyexerciseoverparticularthingsorsubjectsiscalledproperty.”
CONTD…
16

17. MEANING OF BENAMI
TRANSACTION [SEC -2(9)]
•Atransactionoranarrangementinrespectofapropertycarriedoutormadeina
fictitiousname
•Atransactionoranarrangementinrespectofapropertywheretheownerofthe
propertyisnotawareof,or,deniesknowledgeofsuchownership
•Atransactionoranarrangementinrespectofapropertywherethepersonproviding
theconsiderationisnottraceableorisfictitious
•Atransactionoranarrangement—whereapropertyistransferredtoorisheldbya
personandtheconsiderationforsuchpropertyhasbeenprovidedorpaidbyanother
personandthepropertyisheldfortheimmediateorfuturebenefit,directorindirect,of
thepersonwhohasprovidedtheconsideration.
17

18. FOLLOWING NOT THE BENAMI
TRANSACTIONS:
•PropertyheldbyaKartaoramemberofaHUF&thepropertyisheldfor
hisbenefitorthebenefitofothermembersinthefamily&theconsideration
forsuchpropertyhasbeenprovidedorpaidoutoftheknownsourcesof
incomeoftheHUF.
•Propertyheldbyapersonstandinginafiduciarycapacityforthebenefitof
anotherpersontowardswhomhestandsinsuchcapacityandincludesa
trustee,executor,partner,directorofacompany,adepositoryora
participantandanyotherpersonasmaybenotifiedbytheCentral
Governmentforthispurpose.
18

19. CONTD…
•PropertyheldbyanIndividualinthenameofhisspouseorinthenameofhis
child&theconsiderationforsuchpropertyhasbeenprovided/paidoutofthe
knownsourcesofincomeoftheIndividual.
•Propertyheldbyanypersoninthenameofhisbrotherorsisterorlineal
ascendantordescendant,wherethenamesofbrotherorsisterorlinealascendant
ordescendentandtheindividualappearasjoint-ownersinanydocument&the
considerationforsuchpropertyhasbeenprovidedorpaidoutoftheknown
sourcesofincomeoftheindividual
•AnytransactionunderSec53AofTransferofPropertyAct1882ifconsideration
forsuchpropertyhasbeenprovidedbythepersontowhompossessionofproperty
hasbeenallowedbutthepersonwhohasgrantedpossessionthereofcontinuesto
holdownershipofsuchproperty;stampdutyonsuchtransactionorarrangement
hasbeenpaid;andthecontracthasbeenregistered.
FOLLOWING NOT THE BENAMI TRANSACTIONS….
19

20. SHORT TITLE, EXTENT AND
COMMENCEMENT (SEC-1)
•ThisActmaybecalledtheProhibitionofBenamiPropertyTransactions
Act,1988
•ItextendstothewholeofIndiaexcepttheStateofJammuandKashmir.
•Theprovisionsofsections3,5and8shallcomeintoforceon
01.11.2016andtheremainingprovisionsofthisActshallbedeemedto
havecomeintoforceon19.05.1988.
20

21. PROHIBITION OF BENAMI
TRANSACTIONS (SEC -3)
•Nopersonshallenterintoanybenamitransaction.[Sec-3(1)]
•Whoeverentersintoanybenamitransactionshallbepunishablewith
imprisonmentforatermwhichmayextendtothreeyearsorwithfineorwith
both.[Sec-3(2)]
•Whoeverentersintoanybenamitransactiononandafterthedateof
commencementoftheBenamiTransactions(Prohibition)AmendmentAct,
2016,shall,notwithstandinganythingcontainedinsub-section(2),be
punishableinaccordancewiththeprovisionscontainedinChapterVII
[Offences&Prosecution]
21

22. PROHIBITION OF BENAMI
TRANSACTIONS ….
TheSupremeCourtinR.RajagopalReddyvsPadmini
Chandrasekharan(1995)2SCC630observed:
“OntheexpresslanguageofSection3,theActcannotbesaid
tobedeclaratorybutinsubstanceitisprohibitoryinnature
andseekstodestroytherightsoftherealownerquaproperties
heldbenami.”
CONTD…
22

23. PROHIBITION OF RIGHT TO RECOVER
PROPERTY HELD BENAMI (SEC-4)
•Nosuit,claimoractiontoenforceanyrightinrespectofanypropertyheld
benamiagainstthepersoninwhosenamethepropertyisheldoragainstany
otherpersonshallliebyoronbehalfofapersonclaimingtobetherealownerof
suchproperty.
•Nodefencebasedonanyrightinrespectofanypropertyheldbenami,whether
againstthepersoninwhosenamethepropertyisheldoragainstanyother
person,shallbeallowedinanysuit,claimoractionbyoronbehalfofaperson
claimingtobetherealownerofsuchproperty.
23

24. PROPERTY HELD BENAMI LIABLE TO
CONFISCATION (SEC-5)
•Anyproperty,whichissubjectmatterofbenamitransaction,shallbeliabletobe
confiscatedbytheCentralGovernment.
COMPOSITION OF AUTHORITY (SEC-8)
•AnAdjudicatingAuthorityshallconsistofaChairpersonandatleasttwoother
Members.
24

25. PROHIBITION ON RE -TRANSFER OF
PROPERTY BY BENAMIDAR (SEC-6)
•Noperson,beingabenamidarshallre-transferthebenamipropertyheldby
himtothebeneficialowneroranyotherpersonactingonhisbehalf.
•Whereanypropertyisre-transferredincontraventionoftheprovisionsof
sub-section(1),thetransactionofsuchpropertyshallbedeemedtobenull
andvoid.
•Theprovisionsofsub-sections(1)and(2)shallnotapplytoatransfermade
inaccordancewiththeprovisionsofsection190oftheFinanceAct,2016.
25

26. ADJUDICATING AUTHORITIES
•TheCentralGovernmentshall,bynotification,appointoneormoreAdjudicatingAuthorities
toexercisejurisdiction,powersandauthorityconferredbyorunderthisAct.(Sec-7)
•TheCentralGovernmentappointstheseniormostMemberastheChairpersonoraMember
oftheAdjudicatingAuthority,whohasbeenamemberoftheIndianRevenueServiceand
hasheldthepostofCITorequivalentpostinthatService;orhasbeenamemberofthe
IndianLegalServiceandhasheldthepostofJointSecretaryorequivalentpostinthat
Service.(Sec-9)
•Thejurisdictionoftheadjudicatingauthoritymaybeexercisedbybenches,whichisbe
constitutedbythechairpersonoftheadjudicatingauthoritywithtwomembers.(Sec-10)
26

27. ADJUDICATING AUTHORITIES….
•TheAdjudicatingAuthorityshallhavepowerstoregulateitsownprocedure.(Sec-11)
•TheChairpersonandMembersoftheAdjudicatingAuthorityshallholdofficeforaperiodof5
yearsfromthedateonwhichtheyenterupontheiroffice,oruntiltheyattaintheageof62
years,whicheverisearlierandshallnotbeeligibleforreappointment.(Sec-12)
•Thesalaryandallowancespayableto,andtheothertermsandconditionsofserviceofthe
ChairpersonandotherMembersoftheAdjudicatingAuthorityshallbesuchasmaybe
prescribed.[Sec-13(1)]
•AnyvacancycausedtotheofficeoftheChairpersonoranyotherMembershallbefilledup
withinaperiodof3monthsfromthedateonwhichsuchvacancyoccurs.[Sec-13(2)]
CONTD…
27

28. ADJUDICATING AUTHORITIES….
•TheCentralGovernmentmayremovethechairpersonorothermembersoftheAdjudicating
Authorityifhehasbeenadjudgedasaninsolvent;orhasbeenconvictedofanoffence,involving
moralturpitude;orhasbecomephysicallyormentallyincapableofactingasaMember;orhas
acquiredsuchfinancialorotherinterestasislikelytoaffectprejudiciallyhisfunctions;orhas
abusedhispositionastorenderhiscontinuanceinoffice,isprejudicialtothepublicinterest.
Opportunityofbeingheardmustbeprovided.(Sec-14)
•IncaseofanyvacancyintheofficeoftheChairpersonduetohisdeath,resignationorotherwise,
theseniormostMembershallactastheChairpersonoftheAdjudicatingAuthorityuntilthedate
onwhichanewChairperson,appointedandentersuponhisoffice.IncasetheChairpersonis
unabletodischargehisfunctionsowingtoabsence,illnessoranyothercause,theseniormost
MembershalldischargethefunctionsoftheChairpersonuntilthedateonwhichthe
Chairpersonresumeshisduties.(Sec-15)
CONTD…
28

29. ADJUDICATING AUTHORITIES….
•TheactorproceedingoftheAdjudicatingAuthorityshallnotbeinvaliddueto
anyvacancyin,oranydefectintheconstitutionoftheAuthorityorinthe
appointmentofapersonactingasaMemberoftheAuthority;orany
irregularityintheprocedureoftheAuthoritynotaffectingthemeritsofthe
case.(Sec-16)
•TheCentralGovernmentshallprovideeachAdjudicatingAuthoritywith
officersandemployees,whoshalldischargetheirfunctionsunderthegeneral
superintendenceoftheChairpersonoftheAdjudicatingAuthority.(Sec-17)
CONTD…
29

30. AUTHORITIES AND
JURISDICTION (SEC-18)
•ThefollowingshallbetheauthoritiesforthepurposesofthisAct,namely:—
oTheinitiatingofficer
oTheapprovingauthority
oTheadministrator
oTheadjudicatingauthority.
•Theauthoritiesshallexercisealloranyofthepowersandperformalloranyofthefunctions
conferredon,or,assigned,asthecasemaybe,toitunderthisActorinaccordancewithsuch
rulesasmaybeprescribed.
30

31. POWERS OF AUTHORITIES (SEC-19)
•TheauthoritiesshallhavethesamepowersasarevestedinacivilcourtundertheCodeofCivil
Procedure,1908,whiletryingasuitinrespectofthefollowingmatters:[Sec-19(1)]
odiscoveryandinspection;
oenforcingtheattendanceofanyperson,includinganyofficialofabankingcompanyorapublic
financialinstitutionoranyotherintermediaryorreportingentity,andexamininghimonoath;
ocompellingtheproductionofbooksofaccountandotherdocuments;
oissuingcommissions;
oreceivingevidenceonaffidavits;and
oanyothermatterwhichmaybeprescribed.
31

32. POWERS OF AUTHORITIES….
•Allthepersonssummonedundersub-section(1)shallbeboundtoattendin
personorthroughauthorisedagents,asanyauthorityunderthisActmay
direct,andshallbeboundtostatethetruthuponanysubjectrespectingwhich
theyareexaminedormakestatements,andproducesuchdocumentsasmay
berequired.[Sec-19(2)]
•Everyproceedingundersub-section(1)orsub-section(2)shallbedeemedto
beajudicialproceedingwithinthemeaningofsection193andsection228of
theIndianPenalCode.[Sec-19(3)]
CONTD…
32

33. POWERS OF AUTHORITIES….
•Anyauthorityunderthisactmayrequisitiontheserviceofanypoliceofficeror
ofanyofficeroftheCentralGovernmentorStateGovernmentorofbothto
assisthimforalloranyofthepurposesspecifiedinsub-section(1),anditshall
bethedutyofeverysuchofficertocomplywiththerequisitionordirection.
[Sec-19(4)]
•Forthepurposesofthissection,"reportingentity"meansanyintermediaryor
anyauthorityoroftheCentralortheStateGovernmentoranyotherpersonas
maybenotifiedinthisbehalf.[Sec-19(5)]
CONTD…
33

34. CERTAIN OFFICERS TO ASSIST IN INQUIRY,
ETC. (SEC-20)
ThefollowingofficersshallassisttheauthoritiesintheenforcementofthisAct:
•Income-taxauthoritiesappointedu/s117(1)oftheIncome-TaxAct,1961;
•Officersofthecustomsandcentralexcisedepartments;
•Officersappointedu/s5(1)oftheNarcoticDrugsandPsychotropicSubstancesAct,1985;
•Officersofthestockexchangerecognisedu/s4oftheSecuritiesContracts(Regulation)Act,
1956;
•OfficersofthereservebankofIndiaconstitutedu/s3(1)oftheReserveBankofIndiaAct,1934;
•Police;
34

35. CERTAIN OFFICERS TO ASSIST IN
INQUIRY, ETC….
•Officersofenforcementappointedu/s36(1)oftheForeignExchangeManagementAct,1999;
•OfficersofthesecuritiesandexchangeboardofIndiaestablishedu/s3oftheSecuritiesand
ExchangeBoardofIndiaAct,1992;
•OfficersofanyotherbodycorporateconstitutedorestablishedunderaCentraloraStateAct;
and
•SuchotherofficersoftheCentralGovernment,StateGovernment,localauthoritiesor
bankingcompaniesastheCentralGovernmentmay,bynotification,specify,inthisbehalf.
CONTD…
35

36. POWER TO CALL FOR INFORMATION
(SEC-21)
•TheInitiatingOfficerortheApprovingAuthorityortheAdjudicatingAuthorityshall
havepowertorequireanyofficeroftheCentralGovernmentorStateGovernmentora
localbodyoranypersonorofficerwhoisresponsibleforregisteringandmaintaining
booksofaccountorotherdocumentscontainingarecordofanytransactionrelating
toanypropertyoranyotherpersontofurnishanyinformationinrelationtoany
person,pointormatterasinhisopinionshallbeusefulfororrelevant.
•Everyofficerorpersonreferredaboveshallfurnishsuchinformationtoanyauthority
underthisactinsuchformandmannerasmaybeprescribed.(SeeRule-4)
36

37. FURNISHING OF INFORMATION
(RULE-4)
Forthepurposeofsec-21(2),theIncome-TaxAuthorityreferredtoin
sec-285BA(1)ofIncome-taxAct,1961orsuchotherauthorityor
agencywhichisprescribedu/s285BA(1)shallelectronicallytransmit
acopyofstatementreceivedbyitu/s285BA(1)ofthatActtothe
InitiatingOfficerorsuchauthorityoragencyauthorisedbythe
InitiatingOfficeronorbefore15daysfromtheendofthemonthin
whichsaidstatementisreceived.
37

38. POWER OF AUTHORITY TO IMPOUND
DOCUMENTS (SEC-22)
•Whereanybooksofaccountorotherdocumentsareproducedbeforethe
authorityinanyproceedingsandtheauthorityinthisbehalfhasreasonto
believethatanyofthebooksofaccountorotherdocumentsarerequiredtobe
impoundedandretainedforanyinquiry,itmayimpoundandretainthebooks
ofaccountorotherdocumentsforaperiodnotexceeding3monthsfromthe
dateoforderofattachmentmadebytheAdjudicatingAuthorityu/s26(3)
Providedthattheperiodforretentionmaybeextendedbeyondaperiodof3
monthsbuttheauthorityrecordsinwritingthereasonsforextendingthe
same.[Sec-22(1)]
38

39. POWER OF AUTHORITY TO IMPOUND
DOCUMENTS….
•Wheretheauthorityimpoundingandretainingthebooksofaccountorother
documentsistheInitiatingOfficer,heshallobtainapprovaloftheApproving
Authoritywithinaperiodof15daysfromthedateofinitialimpoundingandseek
furtherapprovaloftheApprovingAuthorityforextendingtheperiodofinitial
retention,beforetheexpiryoftheperiodofinitialretention,ifsorequired.[Sec-
22(2)]
•Theperiodofretentionofthebooksofaccountorotherdocumentsundersub-
section(1)shallinnocaseexceedaperiodof30daysfromthedateofconclusionof
alltheproceedings.[Sec-22(3)]
CONTD…
39

40. POWER OF AUTHORITY TO IMPOUND
DOCUMENTS….
•Theperson,fromwhomthebooksofaccountorotherdocumentswere
impoundedundersub-section(1),shallbeentitledtoobtaincopiesthereof.
[Sec-22(4)]
•Ontheexpiryoftheperiodspecifiedundersub-section(1),thebooksof
accountorotherdocumentsshallbereturnedtothepersonfromwhom
suchbooksofaccountorotherdocumentswereimpoundedunlessthe
approvingauthorityortheadjudicatingauthoritypermitstheirreleaseto
anyotherperson.[Sec-22(5)]
CONTD…
40

41. POWER OF AUTHORITY TO CONDUCT
INQUIRY, ETC (SEC-23)
TheInitiatingOfficer,afterobtainingpriorapprovalofthe
ApprovingAuthority,shallhavepowertoconductorcausetobe
conductedanyinquiryorinvestigationinrespectofanyperson,
place,property,assets,documents,booksofaccountorother
documents,inrespectofanyotherrelevantmatters.
41

42. NOTICE AND ATTACHMENT OF PROPERTY
INVOLVED IN BENAMITRANSACTION (SEC-24)
•WheretheInitiatingOfficer,onthebasisofmaterialinhispossession,hasreasonto
believethatanypersonisabenamidarinrespectofaproperty,hemay,after
recordingreasonsinwriting,issueanoticetothepersontoshowcausewithinsuch
timeasmaybespecifiedinthenoticewhythepropertyshouldnotbetreated
asbenamiproperty.[Sec-24(1)]
•Whereanoticespecifiesanypropertyasbeingheldbyabenamidar,acopyofthe
noticeshallalsobeissuedtothebeneficialownerifhisidentityisknown.[Sec-24(2)]
42

43. NOTICE AND ATTACHMENT OF PROPERTY
INVOLVED IN BENAMITRANSACTION….
•WheretheInitiatingOfficerisoftheopinionthatthepersoninpossessionof
thepropertyheldbenamimayalienatethepropertyduringtheperiod
specifiedinthenotice,hemay,withthepreviousapprovaloftheApproving
Authority,byorderinwriting,attachprovisionallythepropertyinthe
mannerasmaybeprescribed,foraperiodnotexceeding90daysfromthe
dateofissueofnotice.[Sec-24(3)](SeeRule-5)
CONTD…
43

44. PROVISIONAL ATTACHMENT
(RULE-5)
Forthepurposesofsec-24(3),theInitiating
Officershallprovisionallyattachanypropertyin
themannerprovidedintheII
nd
Scheduleof
Income-taxAct,1961.
44

45. NOTICE AND ATTACHMENT OF PROPERTY
INVOLVED IN BENAMITRANSACTION….
•TheInitiatingOfficer,aftermakingsuchinquiresandcallingforsuchreportsorevidenceashedeemsfit
andtakingintoaccountallrelevantmaterials,shall,withinaperiodof90daysfromthedateofissueof
notice—passanordercontinuingtheprovisionalattachmentofthepropertywiththepriorapprovalof
theApprovingAuthority,tillthepassingoftheorderbytheAdjudicatingAuthorityu/s26(3)orrevoke
theprovisionalattachmentofthepropertywiththepriorapprovaloftheApprovingAuthority,wherethe
provisionalattachmenthasbeenmadeundersub-section(3);orpassanorderprovisionally
attachingthepropertywiththepriorapprovaloftheApprovingAuthority,tillthepassingoftheorderby
theAdjudicatingAuthorityu/s26(3)ordecidenottoattachthepropertyasspecifiedinthenotice,with
thepriorapprovaloftheApprovingAuthority,whereprovisionalattachmenthasnotbeenmade
undersub-section(3).[Sec-24(4)]
CONTD…
45

46. NOTICE AND ATTACHMENT OF PROPERTY
INVOLVED IN BENAMITRANSACTION….
•WheretheInitiatingOfficerpassesanordercontinuingthe
provisionalattachmentofthepropertyorpassesanorder
provisionallyattachingtheproperty,heshall,within15daysfrom
thedateoftheattachment,drawupastatementofthecaseand
referittotheAdjudicatingAuthority.[Sec-24(5)]
CONTD…
46

47. MANNER OF SERVICE OF NOTICE (SEC-25)
•Anoticeu/s24(1)maybeservedonthepersonnamedthereineitherbypostorasifitwereasummons
issuedbyaCourtundertheCodeofCivilProcedure,1908.
•Anynoticereferredabovemaybeaddressed—
oIncaseofanIndividual,tosuchindividual
oInthecaseofaFirm,tothemanagingpartnerorthemanagerofthefirm
oInthecaseofaHUF,toKartaoranymemberofsuchfamily
oInthecaseofaCompany,totheprincipalofficerthereof
oInthecaseofanyotherAssociationorBodyofIndividuals,totheprincipalofficeroranymemberthereof
oInthecaseofanyOtherperson(notbeinganindividual),tothepersonwhomanagesorcontrolshisaffairs.
47

48. ADJUDICATION OF BENAMI PROPERTY
(SEC-26)
•Onreceiptofareferenceu/s24(5),theAdjudicatingAuthorityshallissuenotice,to
furnishsuchdocuments,particularsorevidenceasisconsiderednecessaryonadate
tobespecifiedtherein,onthefollowingpersons—[Sec-26(1)]
othepersonspecifiedasabenamidartherein;
oanypersonreferredtoasthebeneficialownerthereinoridentifiedassuch;
oanyinterestedparty,includingabankingcompany;
oanypersonwhohasmadeaclaiminrespectoftheproperty.
48

49. ADJUDICATION OF BENAMIPROPERTY….
ProvidedthattheAdjudicatingAuthorityshallissuenoticewithinaperiodof30daysfrom
thedateonwhichareferencehasbeenreceived.
Providedfurtherthatthenoticeshallprovideaperiodofnotlessthanthirtydaystothe
persontowhomthenoticeisissuedtofurnishtheinformationsought.
•Wherethepropertyisheldjointlybymorethanoneperson,theAdjudicatingAuthority
shallmakeallendeavourstoservenoticetoallpersonsholdingthepropertyProvided
thatwherethenoticeisservedonanyoneofthepersons,theserviceofnoticeshallnotbe
invalidonthegroundthatthesaidnoticewasnotservedtoallthepersonsholdingthe
property.[Sec-26(2)]
CONTD…
49

50. ADJUDICATION OF BENAMI PROPERTY….
•TheAdjudicatingAuthorityshall,afterconsideringthereply,ifany,tothenoticeissuedunder
sub-section(1);makingorcausingtobemadesuchinquiriesandcallingforsuchreportsor
evidenceasitdeemsfit;andtakingintoaccountallrelevantmaterials,provideanopportunityof
beingheardtothepersonspecifiedasabenamidartherein,theInitiatingOfficer,andanyother
personwhoclaimstobetheowneroftheproperty,and,thereafter,passanorderholdingthe
propertynottobeabenamipropertyandrevokingtheattachmentorder;orholdingtheproperty
tobeabenamipropertyandconfirmingtheattachmentorder,inallothercases.[Sec-26(3)]
•WheretheAdjudicatingAuthorityissatisfiedthatsomepartofthepropertiesinrespectofwhich
referencehasbeenmadetohimisbenamiproperty,butisnotabletospecificallyidentifysuch
part,heshallrecordafindingtothebestofhisjudgmentastowhichpartofthepropertiesis
heldbenami.[Sec-26(4)]
CONTD…
50

51. ADJUDICATION OF BENAMI PROPERTY….
•Whereinthecourseofproceedingsbeforeit,theAdjudicatingAuthorityhasreasonto
believethataproperty,otherthanapropertyreferredtoitbytheInitiatingOfficeris
benamiproperty,itshallprovisionallyattachthepropertyandthepropertyshallbe
deemedtobeapropertyreferredtoitonthedateofreceiptofthereferenceu/s24(5).
[Sec-26(5)]
•TheAdjudicatingAuthoritymay,atanystageoftheproceedings,eitheronthe
applicationofanyparty,orsuomotu,strikeoutthenameofanypartyimproperly
joinedoraddthenameofanypersonwhosepresencebeforetheAdjudicating
Authoritymaybenecessarytoenablehimtoadjudicateuponandsettleallthe
questionsinvolvedinthereference.[Sec-26(6)]
CONTD…
51

52. ADJUDICATION OF BENAMI PROPERTY….
•Noorderundersub-sec.(3)shallbepassedaftertheexpiryofoneyear
fromtheendofthemonthinwhichthereferenceu/s24(5)was
received.[Sec-26(7)]
•Thebenamidaroranyotherpersonwhoclaimstobetheownerofthe
propertymayeitherappearinpersonortaketheassistanceofan
authorisedrepresentativeofhischoicetopresenthiscase.[Sec-26(8)]
CONTD…
52

53. ADJUDICATION OF BENAMI PROPERTY….
Explanationtosec-26(8)—
Authorisedrepresentativemeansapersonauthorisedinwriting,being—
•apersonrelatedtothebenamidarorsuchotherpersoninanymanner,orapersonregularlyemployed
bythebenamidarorsuchotherpersonasthecasemaybe;or
•anyofficerofascheduledbankwithwhichthebenamidarorsuchotherpersonmaintainsanaccountor
hasotherregulardealings;or
•anylegalpractitionerwhoisentitledtopracticeinanycivilcourtinIndia;or
•anypersonwhohaspassedanyaccountancyexaminationrecognisedinthisbehalfbytheBoard;or
•anypersonwhohasacquiredsucheducationalqualificationsastheBoardmayprescribeforthis
purpose.
CONTD…
53

54. CONFISCATION AND VESTING OF BENAMI
PROPERTY (SEC-27)
•Whereanorderispassedinrespectofanypropertyu/s26(3)holdingsuch
propertytobeabenamiproperty,theAdjudicatingAuthorityshall,aftergivingan
opportunityofbeingheardtothepersonconcerned,makeanorderconfiscatingthe
propertyheldtobeabenamiproperty;Providedthatwhereanappealhasbeen
filedagainsttheorderoftheAdjudicatingAuthority,theconfiscationofproperty
shallbemadesubjecttotheorderpassedbytheAppellateTribunalu/s46;
Providedfurtherthattheconfiscationofthepropertyshallbemadeinaccordance
withsuchprocedureasmaybeprescribed.[Sec-27(1)](SeeRule-6)
54

55. CONFISCATION AND VESTING OF
BENAMI PROPERTY ….
•Nothinginsub-section(1)shallapplytoapropertyheldoracquiredbyapersonfromthebenamidar
foradequateconsideration,priortotheissueofnoticeu/s24(1)withouthishavingknowledgeofthe
benamitransaction.[Sec-27(2)]
•Whereanorderofconfiscationhasbeenmadeundersub-section(1),alltherightsandtitleinsuch
propertyshallvestabsolutelyintheCentralGovernmentfreeofallencumbrancesandno
compensationshallbepayableinrespectofsuchconfiscation.[Sec-27(3)]
•AnyrightofanythirdpersoncreatedinsuchpropertywithaviewtodefeatthepurposesofthisAct
shallbenullandvoid.[Sec-27(4)]
•WherenoorderofconfiscationismadeupontheproceedingsunderthisActattainingfinality,no
claimshalllieagainsttheGovernment.[Sec-27(5)]
CONTD…
55

56. CONFISCATION OF PROPERTY UNDER
SECOND PROVISO TO SECTION 27 (1)
(RULE-6)
•Whereanorderofconfiscationofpropertyu/s27(1)hasbeenmade,theAdjudicating
AuthorityshallsendacopyoftheordertotheAuthorisedOfficer.
•Whereanorderreferredtoinsub-rule(1)hasbeenreceivedbytheAuthorisedOfficer
inrespectofanyimmovableproperty,heshall,—
oforthwithissuenoticetotheauthorityoftheCentralGovernmentoraState
Government,ascasemaybe,havingjurisdicationforthepurposesofregistrationof
suchimmovableproperty,intimatingabouttheconfiscationoftheproperty;
56

57. CONFISCATION OF PROPERTY UNDER SECOND
PROVISO TO SECTION 27 (1) (RULE-6)….
oarrangetoplacecopyofthenoticeatsomeconspicuouspartoftheimmovablepropertyfor
thebenefitofgeneralpublicmentioningclearlytherein,inEnglishandinvernacular
language,thatthepropertyhasbeenconfiscatedundertheActandvestsabsolutelyinthe
CentralGovernment;
oarrangetomakeaproclamationfortheconfiscationofimmovablepropertyatsomeplaceon
ornearsuchpropertybybeatofdrumorothercustomarymode.
•Whereanorderreferredtoinsub-rule(1)hasbeenreceivedbytheAuthorisedOfficerin
respectofanymovableproperty,heshall,—
oforthwithissueanoticetotheauthorityorpersonhavingthecustodyofsuchmovable
propertyinforminghimabouttheconfiscationofsuchproperty;or
CONTD…
57

58. CONFISCATION OF PROPERTY UNDER SECOND
PROVISO TO SECTION 27 (1) (RULE-6)….
oselltheproperty,ifthepropertyisliabletospeedyandnaturaldecayortheexpenses
formaintenanceislikelytoexceeditsvalue,withtheleaveoftheconcerned
AdjudicatingAuthority,anddepositthesaleproceedsinthenearestGovernment
TreasuryorbranchoftheStateBankofIndiaoritssubsidiariesorinany
nationalisedbankinfixeddepositandretainthereceiptthereof:
Providedthatwheretheownerofthepropertyfurnishesthefixeddepositreceiptof
StateBankofIndiaoritssubsidiariesoranationalisedbankequivalenttothevalueof
propertyinthenameofAdministrator,theauthorisedofficermayacceptandretain
suchfixeddepositreceiptassecurity:
CONTD…
58

59. CONFISCATION OF PROPERTY UNDER SECOND
PROVISO TO SECTION 27 (1) (RULE-6)….
Providedfurtherthatwherethemovablepropertyisamodeofconveyanceofany
description,theauthorisedofficer,afterobtainingitsvaluationreportfromthe
MotorLicensingAuthorityoranyotherauthority,asthecasemaybe,mayaccept
andretainthefixeddepositreceiptofStateBankofIndiaoritssubsidiariesora
nationalisedbank,equivalenttothevalueofthemovablepropertyassecurityinthe
nameofAdministrator;
•causetodepositthepropertyconsistingofcash,Governmentorothersecuritiesor
bullionorjewelleryorothervaluablesinalockerinthenameoftheAdministrator
orintheformoffixeddeposit,asthecasemaybe,inStateBankofIndiaorits
subsidiariesorinanynationalisedbankandretainthereceiptthereof;
CONTD…
59

60. CONFISCATION OF PROPERTY UNDER SECOND
PROVISO TO SECTION 27 (1) (RULE-6)….
•causetogetthepropertyintheformofshares,debentures,unitsofMutual
FundorinstrumentstobetransferredinfavourofAdministrator;
•issueadirectiontothebankorfinancialinstitution,asthecasemaybe,to
transferandcreditthemoneytotheaccountoftheAdministrator,wherethe
propertyisintheformofmoneylyinginabankorafinancialinstitution.
Explanation-Forthepurposesofthisrule,an"AuthorisedOfficer"means
anIncomeTaxOfficerwhoisauthorisedbytheAdjudicatingAuthorityinthis
behalf.
CONTD…
60

61. MANAGEMENT OF PROPERTIES
CONFISCATED (SEC-28)
•TheAdministratorshallhavethepowertoreceiveandmanagetheproperty,inrelationto
whichanorderofconfiscationu/s27(1)hasbeenmade,insuchmannerandsubjecttosuch
conditions,asmaybeprescribed.(SeeRule-7&8)
•TheCentralGovernmentmay,byorderpublishedintheOfficialGazette,notifyasmanyof
itsofficersasitthinksfit,toperformthefunctionsofAdministrators.
•TheAdministratorshallalsotakesuchmeasures,astheCentralGovernmentmaydirect,to
disposeofthepropertywhichisvestedintheCentralGovernmentu/s27(3),insuch
mannerandsubjecttosuchconditionsasmaybeprescribed.(SeeRule-9)
61

62. RECEIPT OF CONFISCATED PROPERTY
UNDER SUB -SECTION (1) OF SECTION 28
(RULE-7)
TheAdministratorshall,atthetimeofreceivingthe
confiscatedproperty,ensureproperidentificationof
suchpropertywithreferencetoitsparticulars
mentionedintheordermadeu/s27(1).
62

63. •Wherethepropertyconfiscatedisofsuchanaturethatitsremovalfromthe
placeofattachmentisimpracticableoritsremovalinvolvesexpenditureoutof
proportiontothevalueoftheproperty,theAdministratorshallarrangeforthe
propermaintenanceandcustodyofthepropertyattheplaceofitsattachment.
•Ifthepropertyconfiscatedconsistsofcash,Governmentorothersecurities,
bullion,jewelleryorothervaluables,theAdministratorshallcausetodeposit
themforsafecustodyinthenearestGovernmentTreasuryorabranchofthe
ReserveBankofIndiaortheStateBankofIndiaoritssubsidiariesorinany
authorisedbank.
MANAGEMENT OF CONFISCATED PROPERTY
U/S 28(1) (RULE-8)
63

64. •TheAdministratorshallmaintainaregistercontainingthedetailsinForm
No.1annexedtotheserulesforrecordingentriesinrespectofmoveable
property,suchascash,Governmentorothersecurities,bullion,jewelleryor
othervaluables.
•TheAdministratorshallobtainareceiptfromtheTreasuryorthebank,asthe
casemaybe,againstthedepositofmoveablepropertiesstatedinsub-rule(2).
•TheAdministratorshallmaintainaregistercontainingthedetailsinForm
No.2annexedtotheserulesforrecordingentriesinrespectofpropertyother
thanthepropertiesreferredtoinsub-rule(2).
MANAGEMENT OF CONFISCATED
PROPERTY U/S 28(1) (RULE-8)….
CONTD…
64

65. DISPOSAL OF CONFISCATED PROPERTY
U/S 28(3) (RULE-9)
•WheretheCentralGovernmentdirectsthatthe
propertyvestedinitu/s27(3)bedisposedof,then,the
administratorshallarrangetodisposeoftheproperty
inthemannerprovidedintheSecondScheduletothe
Income-taxAct,1961.
65

66. POSSESSION OF THE PROPERTY (SEC-29)
•Whereanorderofconfiscationinrespectofapropertyu/s27(1),hasbeenmade,the
Administratorshallproceedtotakethepossessionoftheproperty.
•TheAdministratorshall,bynoticeinwriting,orderwithin7daysofthedateoftheserviceof
noticetoanyperson,whomaybeinpossessionofthebenamiproperty,tosurrenderordeliver
possessionthereoftotheAdministratororanyotherpersondulyauthorisedinwritingbyhim
inthisbehalf;
•Intheeventofnon-complianceoftheorder,orifinhisopinion,takingoverofimmediate
possessioniswarranted,forthepurposeofforciblytakingoverpossession,requisitionthe
serviceofanypoliceofficertoassisthimanditshallbethedutyoftheofficertocomplywith
therequisition.
66

67. APPELLATE TRIBUNAL
•Appealsagainsttheadjudicatingauthority’sdecisioncanbetakentotheAppellate
TribunalatNewDelhi,whichwillbeestablishedbytheCentralGovernmentandwill
consistofoneChairpersonandtwoothermembersofwhichoneshallbeJudicialmember
andothershallbeanAdministrativemember.TheChairpersoncanalsoconstitutethe
benchesofAppellateTribunal.
•ThepersontobeappointedasChairpersontotheAppellateTribunalmustbeasittingor
retiredjudgeofaHighCourt.
•AJudicialmembermusthavebeenamemberofIndianLegalServiceandhaveheldthe
postofAdditionalSecretaryorequivalentinthatserviceandtheadministrativemember
musthavebeenamemberofIndianRevenueServiceandhaveheldthepostofChiefCIT
orequivalentpost.
67

68. APPELLATE TRIBUNAL….
•AnyvacancycausedtotheofficeoftheChairpersonoranyotherMembershallbe
filledupwithinaperiodof3monthsfromthedateonwhichsuchvacancyoccurs.
•TheChairpersonandMembersoftheAppellateTribunalshallholdofficeforatermof
5yearsortill65yearsofage,whicheverisearlierfromthedateonwhichtheyenter
upontheirofficeandshallnotbeeligibleforre-appointment.
•TheCentralGovernmentshallprovidetheAppellateTribunalwithsuchofficersand
employeeswhodischargetheirfunctionsunderthegeneralsuperintendenceofthe
Chairperson.
CONTD…
68

69. APPELLATE TRIBUNAL….
•TheCentralGovernmentmayremovethechairpersonorothermembersifhehasbeen
adjudgedasaninsolvent;orhasbeenconvictedofanoffence,involvingmoral
turpitude;orhasbecomephysicallyormentallyincapable;orhasacquiredsuch
financialorotherinterestasislikelytoaffectprejudiciallyhisfunctions;orhasabused
hispositionastorenderhiscontinuanceinoffice,isprejudicialtothepublicinterestby
passinganorderafteraninquirymadebyChiefJusticeoftheHighCourt.Opportunity
ofbeingheardmustbeprovided.(Sec-35)
•TheactorproceedingoftheAppellateTribunalshallnotbeinvalidduetoanyvacancy
in,oranydefectintheconstitutionoftheTribunalorintheappointmentofaperson
actingasaMemberoftheAuthority;oranyirregularityintheprocedureofthe
Authoritynotaffectingthemeritsofthecase.(Sec-36)
CONTD…
69

70. APPELLATE TRIBUNAL….
•TheChairpersonoranyotherMembermayresignhisofficebyprovidingnoticeinwriting
totheCentralGovernment,Providedthatheshallcontinuetoholdofficeuntiltheexpiry
of3monthsfromthedateofreceiptofthenoticeorapersonisdulyappointedenters
uponhisofficeortheexpiryofhistermofoffice,whicheverisearlier,unlessheis
permittedbytheCentralGovernmenttorelinquishhisofficesooner.(Sec-37)
•IncaseofanyvacancyintheofficeoftheChairpersonduetohisdeath,resignationor
otherwise,theseniormostMembershallactastheChairpersonuntilthedateonwhicha
newChairpersonentersuponhisoffice.Incaseofabsence,illnessoranyothercause,the
Chairpersonisunabletodischargehisfunctions,theseniormostMembershalldischarge
thefunctionsoftheChairpersonuntilthedateonwhichtheChairpersonresumeshis
duties.(Sec-38)
CONTD…
70

71. APPELLATE TRIBUNAL….
•TheChairpersonmaymakeprovisionastothedistributionofthe
businessoftheAppellateTribunalamongsttheBenchesandalso
provideforthematterswhichmaybedealtwithbyeachBench.
(Sec-41)
•TheChairpersonoftheAppellateTribunalmaytransferanycase
pendingbeforeoneBenchtoanyotherBenchfordisposalonthe
applicationofanyofthepartiesandnoticetotheparties,andafter
hearingthem,oronhisownmotionwithoutanynotice.(Sec-42)
CONTD…
71

72. APPELLATE TRIBUNAL….
•IftheMembersofaBenchdifferinopiniononanypoint,theyshallstatethe
pointsonwhichtheydiffer,andmakeareferencetotheChairpersonwhoshall
eitherhearthepointshimselforreferthecaseforhearingbyotherMembers
andthepointsshallbedecidedaccordingtotheopinionofthemajorityofthe
MembersoftheAppellateTribunalwhohaveheardthecase,includingthose
whofirstheardit.(Sec-43)
•TheChairperson,MembersandotherofficersandemployeesoftheAppellate
Tribunal,theAdjudicatingAuthority,ApprovingAuthority,InitiatingOfficer,
Administratorandtheofficerssubordinatetoallofthemshallbedeemedtobe
publicservantswithinthemeaningofsection21oftheIPC.(Sec-44)
CONTD…
72

73. PROCEDURE AND POWERS OF APPELLATE
TRIBUNAL (SEC-40)
•TheAppellateTribunalshallnotbeboundbytheprocedurelaiddownbytheCodeofCivilProcedure,
1908,butshallbeguidedbytheprinciplesofnaturaljusticeand,subjecttotheotherprovisionsof
thisAct,theAppellateTribunalshallhavepowerstoregulateitsownprocedure.[Sec-40(1)]
•Theappellatetribunalshall,forthepurposesofdischargingitsfunctionsunderthisact,havethe
samepowersasarevestedinacivilcourtunderthecodeofcivilprocedure,1908whiletryingasuit,
inrespectofthefollowingmatters:—[sec-40(2)]
oSummoningandenforcingtheattendanceofanypersonandexamininghimonoath;
oRequiringthediscoveryandproductionofdocuments;
oReceivingevidenceonaffidavits;
73

74. PROCEDURE AND POWERS OF
APPELLATE TRIBUNAL….
oSubjecttotheprovisionsofsections123and124oftheIndianevidenceact,1872,requisitioning
anypublicrecordordocumentorcopyofsuchrecordordocumentfromanyoffice;
oIssuingcommissionsfortheexaminationofwitnessesordocuments;
oReviewingitsdecisions;
oDismissingarepresentationfordefaultordecidingitexparte;
oSettingasideanyorderofdismissalofanyrepresentationfordefaultoranyorderpassedbyit
exparte;and
oAnyothermatter,whichmaybe,prescribedbythecentralgovernment.
CONTD…
74

75. PROCEDURE AND POWERS OF
APPELLATE TRIBUNAL….
•AnordermadebytheAppellateTribunalunderthisActshallbeexecutablebyitasadecreeof
civilcourtand,forthispurpose,theAppellateTribunalshallhaveallthepowersofacivilcourt.
[sec-40(3)]
•Notwithstandinganythingcontainedinsub-section(3),theappellatetribunalmaytransmitany
ordermadebyittoacivilcourthavingjurisdictionandthecivilcourtshallexecutetheorderasif
itwereadecreemadebythatcourt.[sec-40(4)]
•AllproceedingsbeforetheAppellateTribunalshallbedeemedtobejudicialproceedingswithin
themeaningofsections193and228oftheIndianPenalCodeandtheAppellateTribunalshallbe
deemedtobeacivilcourtforthepurposesofsections345and346oftheCodeofCriminal
Procedure,1973.[sec-40(5)]
CONTD…
75

76. BAR OF JURISDICTION OF CIVIL
COURTS (SEC-45)
•Nocivilcourtshallhavejurisdictiontoentertainanysuitorproceeding
inrespectofanymatterwhichanyoftheauthorities,anAdjudicating
AuthorityortheAppellateTribunalisempoweredbyorunderthisAct
todetermine,andnoinjunctionshallbegrantedbyanycourtorother
foruminrespectofanyactiontakenortobetakeninpursuanceofany
powerconferredbyorunderthisAct.
76

77. APPEALS TO APPELLATE TRIBUNAL
(SEC-46)
•Anyperson,includingtheInitiatingOfficer,aggrievedbyanorderoftheAdjudicating
Authoritymaypreferanappealinsuchformandalongwithsuchfees,asmaybeprescribed,
totheAppellateTribunalagainsttheorderpassedbytheAdjudicatingAuthorityu/s26(3),
withinaperiodof45daysfromthedateoftheorder.[Sec-46(1)](SeeRule-10)
•TheAppellateTribunalmayentertainanyappealafterthesaidperiodof45days,ifitis
satisfiedthattheappellantwaspreventedbysufficientcausefromfilingtheappealintime.
[Sec-46(2)]
•TheAppellateTribunalmaypasssuchordersasitthinksfit,aftergivingthepartiestothe
appealanopportunityofbeingheard.[Sec-46(3)]
77

78. APPEALS TO APPELLATE TRIBUNAL….
•AnAppellateTribunalwhiledecidingtheappealshallhavethepower—[Sec-
46(4)]
otodetermineacasefinally,wheretheevidenceonrecordissufficient;
ototakeadditionalevidenceortorequireanyevidencetobetakenbythe
AdjudicatingAuthority,wheretheAdjudicatingAuthorityhasrefusedto
admitevidence,whichoughttohavebeenadmitted;
otorequireanydocumenttobeproducedoranywitnesstobeexaminedfor
thepurposesofproceedingbeforeit;
CONTD…
78

79. APPEALS TO APPELLATE TRIBUNAL….
otoframeissueswhichappeartotheAppellateTribunalessentialfor
adjudicationofthecaseandreferthemtotheAdjudicatingAuthority
fordetermination;
otopassfinalorderandaffirm,varyorreverseanorderofadjudication
passedbytheAdjudicatingAuthorityandpasssuchotherorderororders
asmaybenecessarytomeettheendsofjustice.
•TheAppellateTribunalmayhearandfinallydecidetheappealwithina
periodofoneyearfromthelastdateofthemonthinwhichtheappealis
filed.[Sec-46(5)]
CONTD…
79

80. •AnappealtotheAppellateTribunalu/s46(1)oftheActshallbefiledinFormNo.3annexedto
theserules.
•Atthetimeoffiling,everyappealshallbeaccompaniedbyafeeofRs.10,000.
•Theappealshallsetforthconciselyandunderdistinctheadthegroundsofobjectiontotheorder
appealedagainstandsuchgroundsshallbenumberedconsecutively;andshallspecifytheaddress
ofserviceatwhichnoticeorotherprocessesoftheAppellateTribunalmaybeservedonthe
appellantandthedateonwhichtheorderappealedagainstwasservedontheappellant.
•Wheretheappealispreferredaftertheexpiryoftheperiodof45daysreferredtoinu/s46(1),it
shallbeaccompaniedbyapetition,inquadruplicate,dulyverifiedandsupportedbythe
documents,ifany,relieduponbytheappellant,showingcauseastohowtheappellanthadbeen
preventedfrompreferringtheappealwithintheperiodof45days.
APPEALS TO THE APPELLATE TRIBUNAL
(RULE-10)
80

81. RECTIFICATION OF MISTAKES (SEC-47)
•TheAppellateTribunalortheAdjudicatingAuthoritymay,inordertorectify
anymistakeapparentonthefaceoftherecord,amendanyordermadebyit
undersection26andsection46respectively,withinaperiodofoneyearfrom
theendofthemonthinwhichtheorderwaspassed.[Sec-47(1)]
•Noamendmentshallbemadeundersub-section(1),iftheamendmentislikely
toaffectanypersonprejudicially,unlesshehasbeengivennoticeofintention
todosoandhasbeengivenanopportunityofbeingheard.[Sec-47(2)]
81

82. RIGHT TO REPRESENTATION
(SEC-48)
•ApersonpreferringanappealtotheAppellateTribunalunderthisActmay
eitherappearinpersonortaketheassistanceofanauthorisedrepresentative
ofhischoicetopresenthiscasebeforetheAppellateTribunal.
•TheCentralGovernmentmayauthoriseoneormoreofitsofficerstoactas
presentingofficersonitsbehalf,andeverypersonsoauthorisedmaypresent
thecasewithrespecttoanyappealbeforetheAppellateTribunal.
82

83. RIGHT TO REPRESENTATION ….
Explanationtosec-48—
Authorisedrepresentativemeansapersonauthorisedinwriting,being—
•apersonrelatedtotheappellantinanymannerorapersonregularlyemployedbytheappellant;or
•anyofficerofascheduledbankwithwhichtheappellantmaintainsanaccountorhasotherregular
dealings;or
•anylegalpractitionerwhoisentitledtopracticeinanycivilcourtinIndia;or
•anypersonwhohaspassedanyaccountancyexaminationrecognisedinthisbehalfbytheBoard;or
•anypersonwhohasacquiredsucheducationalqualificationsastheBoardmayprescribeforthis
purpose.
CONTD…
83

84. APPEAL TO HIGH COURT (SEC-49)
•AnypartyaggrievedbyanydecisionororderoftheAppellateTribunalmayfileanappealto
theHighCourtwithinaperiodof60daysfromthedateofcommunicationofthedecision
ororderoftheAppellateTribunaltohimonanyquestionoflawarisingoutofsuchorder.
•TheHighCourtmayentertainanyappealafterthesaidperiodof60days,ifitissatisfied
thattheappellantwaspreventedbysufficientcausefromfilingtheappealwithinthe
specifiedperiod.
•WheretheHighCourtissatisfiedthatasubstantialquestionoflawisinvolvedinanycase,
itshallformulatethatquestion.Theappealshallbeheardonlyonthequestionso
formulated,andtherespondentsshall,atthehearingoftheappeal,beallowedtoarguethat
thecasedoesnotinvolvesuchquestion.
84

85. APPEAL TO HIGH COURT….
•Nothinginthissub-sectionshallbedeemedtotakeawayorabridgethe
powerofthecourttohear,forreasonstoberecorded,theappealonany
othersubstantialquestionoflawnotformulatedbyit,ifitissatisfiedthatthe
caseinvolvessuchquestion.
•TheHighCourtshalldecidethequestionoflawsoformulatedanddeliverthe
judgmentthereoncontainingthegroundsonwhichanydecisionisfounded
andmayawardanycostasitdeemsfit.
CONTD…
85

86. APPEAL TO HIGH COURT….
•TheHighCourtmaydetermineanyissuewhich—
ohasnotbeendeterminedbytheAppellateTribunal;or
ohasbeenwronglydeterminedbytheAppellateTribunal,byreasonofa
decisiononsuchquestionoflawasisreferredtoinsub-section(1).
•SaveasotherwiseprovidedinthisAct,theprovisionsoftheCodeofCivil
Procedure,1908,relatingtoappealstotheHighCourtshall,asfarasmaybe,
applyinthecaseofappealsunderthissection.
CONTD…
86

87. SPECIAL COURTS (SEC-50)
•TheCentralGovernment,inconsultationwiththeChiefJusticeoftheHigh
Court,shall,fortrialofanoffencepunishableunderthisAct,bynotification,
designateoneormoreCourtsofSessionasSpecialCourtorSpecialCourts
forsuchareaorareasorforsuchcaseorclassorgroupofcasesasmaybe
specifiedinthenotification.[Sec-50(1)]
•WhiletryinganoffenceunderthisAct,aSpecialCourtshallalsotryan
offenceotherthananoffencereferredtoinsub-section(1),withwhichthe
accusedmay,undertheCodeofCriminalProcedure,1973,bechargedatthe
sametrial.[Sec-50(2)]
87

88. SPECIAL COURTS….
•TheSpecialCourtshallnottakecognizanceofanyoffencepunishableunder
thisActexceptuponacomplaintinwritingmadebytheauthority;orany
officeroftheCentralGovernmentorStateGovernmentauthorisedin
writingbythatGovernmentbyageneralorspecialordermadeinthis
behalf.[Sec-50(3)]
•Everytrialunderthissectionshallbeconductedasexpeditiouslyaspossible
andeveryendeavourshallbemadebytheSpecialCourttoconcludethetrial
within6monthsfromthedateoffilingofthecomplaint.[Sec-50(4)]
CONTD…
88

89. APPLICATION OF CODE OF CRIMINAL
PROCEDURE, 1973 TO PROCEEDINGS BEFORE
SPECIAL COURT (SEC-51)
•SaveasotherwiseprovidedinthisAct,theprovisionsoftheCodeof
CriminalProcedure,1973,shallapplytotheproceedingsbeforeaSpecial
CourtandthepersonsconductingtheprosecutionbeforetheSpecialCourt,
shallbedeemedtobePublicProsecutorsProvidedthattheCentral
Governmentmayalsoappointforanycaseorclassorgroupofcases,a
SpecialPublicProsecutor.
89

90. APPLICATION OF CODE OF CRIMINAL
PROCEDURE, 1973 TO PROCEEDINGS BEFORE
SPECIAL COURT….
•ApersonshallnotbequalifiedtobeappointedasaPublicProsecutorora
SpecialPublicProsecutorunless,thePublicProsecutorhasbeeninpractice
asanadvocatefornotlessthan7years,andtheSpecialPublicProsecutorhas
beeninpracticeasanadvocatefornotlessthan10yearsinanycourt.
•EverypersonappointedasaPublicProsecutororaSpecialPublicProsecutor
underthissectionshallbedeemedtobeaPublicProsecutorwithinthe
meaningofclause(u)ofsection2oftheCodeofCriminalProcedure,1973
andtheprovisionsofthatCodeshallhaveeffectaccordingly.
CONTD…
90

91. APPEAL AND REVISION
(SEC-52)
TheHighCourtmayexercise,sofarasmaybeapplicable,allthe
powersconferredbyChapterXXIXorChapterXXXoftheCodeof
CriminalProcedure,1973,onaHighCourt,asifaSpecialCourt
withinthelocallimitsofthejurisdictionoftheHighCourtwerea
CourtofSessiontryingcaseswithinthelocallimitsofthejurisdiction
oftheHighCourt.
91

92. PENALTY FOR BENAMI
TRANSACTION (SEC-53)
•Whereanypersonentersintoabenamitransactioninordertodefeattheprovisionsof
anylawortoavoidpaymentofstatutoryduesortoavoidpaymenttocreditors,the
beneficialowner,benamidarandanyotherpersonwhoabetsorinducesanypersonto
enterintothebenamitransaction,shallbeguiltyoftheoffenceofbenamitransaction.
[Sec-53(1)]
•Whoeverisfoundguiltyoftheoffenceofbenamitransactionreferredtoinsub-section
(1)shallbepunishablewithrigorousimprisonmentforatermwhichshallnotbeless
than1year,butwhichmayextendto7yearsandshallalsobeliabletofinewhichmay
extendto25%ofthefairmarketvalueoftheproperty.[Sec-53(2)]
92

93. PENALTY FOR FALSE
INFORMATION (SEC-54)
AnypersonwhoisrequiredtofurnishinformationunderthisAct
knowinglygivesfalseinformationtoanyauthorityorfurnishesany
falsedocumentinanyproceedingunderthisAct,shallbepunishable
withrigorousimprisonmentforatermwhichshallnotbelessthan6
monthsbutwhichmayextendto5yearsandshallalsobeliableto
finewhichmayextendto10%ofthefairmarketvalueoftheproperty.
93

94. PREVIOUS SANCTION (SEC-55)
Noprosecutionshallbeinstitutedagainstanypersoninrespectofanyoffenceundersections
3,53orsection54withouttheprevioussanctionoftheBoard.
REPEAL OF PROVISIONS OF CERTAIN ACTS
(SEC-56)
•Sections81,82and94oftheIndianTrustsAct,1882,section66oftheCodeofCivil
Procedure,1908andsection281AoftheIncome-taxAct,1961,areherebyrepealed.[Sec-
56(1)]
•Fortheremovalofdoubts,itisherebydeclaredthatnothinginsub-section(1)shallaffect
thecontinuedoperationofsection281AoftheIncome-taxAct,1961intheStateofJammu
andKashmir.[Sec-56(2)]
94

95. CERTAIN TRANSFERS TO BE
NULL AND VOID (SEC-57)
NotwithstandinganythingcontainedintheTransferofthePropertyAct,
1882oranyotherlawforthetimebeinginforce,where,aftertheissueofa
noticeu/s24,anypropertyreferredtointhesaidnoticeistransferredbyany
modewhatsoever,thetransfershall,forthepurposesoftheproceedings
underthisAct,beignoredandifthepropertyissubsequentlyconfiscatedby
theCentralGovernmentu/s27,then,thetransferofthepropertyshallbe
deemedtobenullandvoid.
95

96. EXEMPTION (SEC-58)
•TheCentralGovernmentmay,bynotification,exemptany
propertyrelatingtocharitableorreligioustrustsfromthe
operationofthisAct.[Sec-58(1)]
•Everynotificationissuedundersub-section(1)shallbe
laidbeforeeachHouseofParliament.[Sec-58(2)]
96

97. POWER OF CENTRAL
GOVERNMENT TO ISSUE
DIRECTIONS, ETC. (SEC-59)
•TheCentralGovernmentmay,fromtimetotime,issuesuchorders,
instructionsordirectionstotheauthoritiesorrequireanypersonto
furnishinformationasitmaydeemfitfortheproperadministrationof
thisActandsuchauthoritiesandallotherpersonsemployedin
executionofthisActshallobserveandfollowtheorders,instructions
anddirectionsoftheCentralGovernment.[Sec-59(1)]
97

98. POWER OF CENTRAL GOVERNMENT TO
ISSUE DIRECTIONS, ETC….
•TheCentralGovernmentmayhaveregardtoanyoneormoreofthecriteria,
namely—territorialarea;classesofpersons;classesofcases;andanyother
criterionthatmaybespecifiedbytheCentralGovernmentinissuingthe
directionsorordersreferredtoinsub-section(1).[Sec-59(2)]
•Noorders,instructionsordirectionsundersub-section(1)shallbeissuedso
astorequireanyauthoritytodecideaparticularcaseinaparticularmanner;
orinterferewiththediscretionoftheAdjudicatingAuthorityinthedischarge
ofitsfunctions.[Sec-59(3)]
CONTD…
98

99. APPLICATION OF OTHER LAWS
NOT BARRED (SEC-60)
TheprovisionsofthisActshallbeinadditionto,andnot,saveashereinafter
expresslyprovided,inderogationofanyotherlawforthetimebeinginforce.
OFFENCES TO BE NON -
COGNIZABLE (SEC-61)
NotwithstandinganythingcontainedintheCodeofCriminalProcedure,1973,an
offenceunderthisActshallbenon-cognizable.
99

100. OFFENCES BY COMPANIES
(SEC-62)
•WhereapersoncommittingcontraventionofanyoftheprovisionsofthisAct
orofanyrule,directionorordermadethereunderisacompany,everyperson
who,atthetimethecontraventionwascommitted,wasinchargeof,andwas
responsibleto,thecompany,fortheconductofthebusinessofthecompanyas
wellasthecompany,shallbedeemedtobeguiltyofthecontraventionandshall
beliabletobeproceededagainstandpunishedaccordingly.[Sec-62(1)]
•Nothingcontainedinsub-section(1),shallrenderanypersonliableto
punishmentifheprovesthatthecontraventiontookplacewithouthis
knowledge.[Sec-62(2)]
100

101. OFFENCES BY COMPANIES….
•Notwithstandinganythingcontainedinsub-section(1),wherea
contraventionofanyoftheprovisionsofthisActorofanyrule,directionor
ordermadethereunderhasbeencommittedbyacompanyanditisproved
thatthecontraventionhastakenplacewiththeconsentorconnivanceof,or
isattributabletoanyneglectonthepartofanydirector,manager,secretary
orotherofficerofthecompany,thedirector,manager,secretaryorother
officershallalsobedeemedtobeguiltyofthecontraventionandshallbe
liabletobeproceededagainstandpunishedaccordingly.[Sec-62(3)]
CONTD…
101

102. EXPLANATION TO SEC-62
•"Company"meansabodycorporate,andincludes—
oAfirm;and
oAnassociationofpersonsorabodyofindividualswhetherincorporatedornot;
and
•"Director",inrelationto—
oAfirm,meansapartnerinthefirm;
oAnyassociationofpersonsorabodyofindividuals,meansanymember
controllingtheaffairsthereof.
102

103. NOTICE, ETC., NOT TO BE
INVALID ON CERTAIN GROUNDS
(SEC-63)
Nonotice,summons,order,documentorotherproceeding,furnishedor
madeorissuedortakenorpurportedtohavebeenfurnishedormadeor
issuedortakeninpursuanceofanyoftheprovisionsofthisActshallbe
invalid,orshallbedeemedtobeinvalidmerelybyreasonofanymistake,
defectoromissioninthenotice,summons,order,documentorother
proceedingifthenotice,summons,order,documentorotherproceeding
isinsubstanceandeffectinconformitywithoraccordingtotheintentand
purposeofthisAct.
103

104. PROTECTION OF ACTION TAKEN
IN GOOD FAITH (SEC-64)
Noprosecution,suitorotherproceedingshalllieagainst
theGovernmentoranyofficeroftheGovernmentorthe
AppellantTribunalortheAdjudicatingAuthority
establishedunderthisAct,foranythingdoneorintendedto
bedoneingoodfaithunderthisAct.
104

105. TRANSFER OF PENDING CASES
(SEC-65)
•Everysuitorproceedinginrespectofabenamitransactionpendingin
anyCourt(otherthanaHighCourt)orTribunalorbeforeanyforum
onthedateofthecommencementofthisActshallstandtransferredto
theAdjudicatingAuthorityortheAppellateTribunal,asthecasemay
be,havingjurisdictioninthematter.[Sec-65(1)]
105

106. TRANSFER OF PENDING CASES….
•Whereanysuit,orotherproceedingstandstransferredtotheAdjudicatingAuthorityorthe
AppellateTribunalundersub-section(1),—[Sec-65(2)]
othecourt,Tribunalorotherforumshall,assoonasmaybe,afterthetransfer,forwardthe
recordsofthesuit,orotherproceedingtotheAdjudicatingAuthorityortheAppellate
Tribunal,asthecasemaybe;
otheAdjudicatingAuthoritymay,onreceiptoftherecords,proceedtodealwiththesuit,
orotherproceeding,sofarasmaybe,inthesamemannerasinthecaseofareference
madeu/s24(5),fromthestagewhichwasreachedbeforethetransferorfromanyearlier
stageordenovoastheAdjudicatingAuthoritymaydeemfit.
CONTD…
106

107. PROCEEDINGS, ETC., AGAINST
LEGAL REPRESENTATIVE (SEC-66)
•WhereapersondiesduringthecourseofanyproceedingunderthisAct,any
proceedingtakenagainstthedeceasedbeforehisdeathshallbedeemedtohave
beentakenagainstthelegalrepresentativeandmaybecontinuedagainstthe
legalrepresentativefromthestageatwhichitstoodonthedateofthedeathofthe
deceased.[Sec-66(1)]
•Anyproceedingwhichcouldhavebeentakenagainstthedeceasedifhehad
survivedmaybetakenagainstthelegalrepresentativeandalltheprovisionsof
thisAct,exceptsection3(2)andtheprovisionsofChapterVII,shallapply
accordingly.[Sec-66(2)]
107

108. PROCEEDINGS, ETC., AGAINST
LEGAL REPRESENTATIVE….
•Whereanypropertyofapersonhasbeenheldbenamiu/s26(3),then,it
shallbelawfulforthelegalrepresentativeofthepersontopreferanappeal
totheAppellateTribunal,inplaceofthepersonandtheprovisionsof
section46shall,sofarasmaybe,apply,orcontinuetoapply,totheappeal.
[Sec-66(3)]
CONTD…
108

109. ACT TO HAVE
OVERRIDING EFFECT
(SEC-67)
TheprovisionsofthisActshallhaveeffect,
notwithstandinganythinginconsistenttherewith
containedinanyotherlawforthetimebeinginforce.
109

110. POWER TO MAKE RULES (SEC-68)
•TheCentralGovernmentmaymakerulesforcarryingouttheprovisionsofthisActby
notification.
•Inparticular,andwithoutprejudicetothegeneralityoftheforegoingpower,suchrules
mayprovideforalloranyofthefollowingmatters:—
omannerofascertainingthefairmarketvalueunderclause(16)ofsection2;
othemannerofappointingtheChairpersonandtheMemberoftheAdjudicating
Authoritiesu/s9(2);
othesalariesandallowancespayabletotheChairpersonandtheMembersofthe
AdjudicatingAuthorityu/s13(1);
othepowersandfunctionsoftheauthoritiesu/s18(2);
110

111. POWER TO MAKE RU LES….
ootherpowersoftheauthoritiesu/s19(1)(f);
otheformandmanneroffurnishinganyinformationtotheauthorityu/s21(2);
othemannerofprovisionalattachmentofpropertyu/s24(3);
otheprocedureforconfiscationofbenamipropertyunderthesecondprovisotosec
27(1);
othemannerandconditionstoreceiveandmanagethepropertyu/s28(1);
othemannerandconditionsofdisposalofpropertyvestedintheCentral
Governmentu/s28(3);
CONTD…
111

112. POWER TO MAKE RULES….
othesalariesandallowancespayabletoandtheothertermsandconditionsofserviceof
theChairpersonandotherMembersoftheAppellateTribunalu/s33(1);
othemannerofprescribingprocedureforremovalofChairpersonorMemberu/s35(4);
othesalariesandallowancespayabletoandtheothertermsandconditionsofserviceof
theofficersandemployeesoftheAppellateTribunalu/s39(3);
oanypoweroftheAppellateTribunalu/s40(2)(i);
otheforminwhichappealshallbefiledandthefeeforfilingtheappealu/s46(1);
oanyothermatterwhichistobe,ormaybe,prescribed,orinrespectofwhichprovision
istobemade,byrules.
CONTD…
112

113. LAYING OF RULES AND NOTIFICATIONS
BEFORE PARLIAMENT (SEC-69)
EveryrulemadeandnotificationissuedunderthisActshallbelaid,assoonasmaybe
afteritismadeorissued,beforeeachHouseofParliament,whileitisinsession,fora
totalperiodofthirtydayswhichmaybecomprisedinonesessionorintwoormore
successivesessions,andif,beforetheexpiryofthesessionimmediatelyfollowingthe
sessionorthesuccessivesessionsaforesaid,bothHousesagreeinmakingany
modificationintherulesornotifications,asthecasemaybe,bothHousesagreethat
therulesornotifications,asthecasemaybe,shouldnotbemadeorissued,theruleor
notification,asthecasemaybe,shallthereafterhaveeffectonlyinsuchmodifiedform
orbeofnoeffect,asthecasemaybe;so,however,thatanysuchmodificationor
annulmentshallbewithoutprejudicetothevalidityofanythingpreviouslydoneunder
thatruleornotification,asthecasemaybe.
113

114. POWER TO REMOVE DIFFICULTIES
(SEC-70)
•IfanydifficultyarisesingivingeffecttotheprovisionsofthisAct,theCentral
Governmentmay,byorder,publishedintheOfficialGazette,makesuchprovisions
notinconsistentwiththeprovisionsofthisActasmayappeartobenecessaryfor
removingthedifficulty.
•Noordershallbemadeunderthissectionaftertheexpiryoftwoyearsfromthe
commencementofthisAct.
•Everyordermadeunderthissectionshallbelaid,assoonasmaybeafteritismade,
beforeeachHouseofParliament.
114

115. TRANSITIONAL PROVISION
(SEC-71)
TheCentralGovernmentmay,bynotification,providethatuntilthe
AdjudicatingAuthoritiesareappointedandtheAppellateTribunalis
establishedunderthisAct,theAdjudicatingAuthorityappointedunder
sub-section(1)ofsection6oftheMoney-LaunderingAct,2002andthe
AppellateTribunalestablishedundersection25ofthatActmaydischarge
thefunctionsoftheAdjudicatingAuthorityandAppellateTribunal,
respectively,underthisAct.
115

116. REPEAL AND SAVING (SEC-72)
•TheBenamiTransactions(ProhibitionoftheRighttoRecover
Property)Ordinance,1988isherebyrepealed.
•Notwithstandingsuchrepeal,anythingdoneoranyactiontaken
underthesaidOrdinanceshallbedeemedtohavebeendoneor
takenunderthecorrespondingprovisionsofthisAct.
116

117. IMPORTANT CIRCULARS,
NOTIFICATIONS
&
CLARIFICATIONS
117

118. TheSupremeCourthasheldthatinthecaseofbenamitransactions,therealownerhasgot
thetitle,thoughthepropertyisinthenameofthebenamidar.Therealownercandealwith
thepropertywithoutreferencetothebenamidar.Abenamidarhasnointerestatallinthe
propertystandinginhisname.Thefactthattherealownercannotrecoverthepropertysold
bythebenamidarunlessheshowsthatthepurchaserhadactualorconstructivenoticeof
therealtitle,doesnotmeanthatthebenamidarhasrealtitletotheproperty.Heismerely
anostensibleownerthereof.Inviewoftheanalysis,liabilitytoestatedutyinrespectof
propertyheldbenamiwouldariseonthedeathoftherealownerandnotonthedeathofthe
benamidar.
Liability to estate duty in respect of property held
benami -Whether arise on the death of real owner and
not on the death of benamidar[CIRCULAR NO. 364,
dated 15-7-1983]
118

119. Inacasewherethedeclarantgetsthebenamiassettransferredinhisnamewithoutpayment
ofanymonetaryconsiderationtothebenamidar,whethercapitalgainswouldbechargeable
inthehandsofbenamidarconsequentuponsuchtransferandwhetherthetaxatsource@1%
wouldbedeductedinsuchcase?
➢Inthiscasetheconsiderationforacquisitionofbenamipropertyhasalreadybeenpaidby
thebeneficialownerandthefairmarketvalueofthepropertyhasbeendeclaredbythe
beneficialownerundertheScheme.Since,thetransferofpropertyfrombenamidarto
beneficialownerisonlytoregularizeandtherewillbenoinvolvementofmonetary
considerationfortransferofimmovablepropertybythebenamidarinthenameofthe
declarant,thequestionofcapitalgainsinthehandsofbenamidaranddeductionoftaxat
sourcethereonshallnotarise.
[CIRCULAR NO. 27, dated 14-7-2016,CLARIFICATIONS
ON THE INCOME DECLARATION SCHEME, 2016, FAQ -4]
119

120. ➢TheCentralGovernmentnotifiesthat,witheffectfromthe01-11-2016,
theAdjudicatingAuthorityappointedu/s6(1)ofthePreventionof
Money-LaunderingAct,2002andtheAppellateTribunalestablishedu/s
25ofthatactshalldischargethefunctionsoftheAdjudicatingAuthority
andAppellateTribunal,respectively,undertheProhibitionofBenami
PropertyTransactionsAct,1988untiltheAdjudicatingAuthoritiesare
appointedandtheAppellateTribunalisestablishedundertheProhibition
ofBenamiPropertyTransactionsAct,1988.
[NOTIFICATION NO. 97/2016,
dated 25-10-2016]
120

121. ➢Inexerciseofthepowersconferredu/s28(2)r.w.s.59oftheProhibitionofBenamiProperty
TransactionsAct,1988,andinsupersessionoftheMinistryofFinance,DepartmentofRevenue,
CentralBoardofDirectTaxes,notificationno.S.O.3290(E),dated25-10-2016,publishedinthe
GazetteofIndia,Extraordinary,Part-II,Section3(ii),dated25-10-2016,exceptasrespectsthings
doneoromittedtobedonebeforesuchsupersession,theCentralGovernmentherebydirectsthat
theIncome-taxauthoritiesundersection116oftheIncome-TaxAct,1961specifiedincolumn(2)
oftheSchedule,havingheadquartersattheplacesspecifiedinthecorrespondingentryincolumn
(3),toexercisethepowersandperformthefunctionsofthe‘Authority’undertheProhibitionof
BenamiPropertyTransactionsAct,45of1988specifiedinthecorrespondingentriesincolumn
(4)inrespectoftheterritorialareasspecifiedinthecorrespondingentriesincolumn(5)ofthe
Schedulehavingjurisdictionvestedinthem—
[NOTIFICATION NO. SO 1621(E),
dated 18-05-2017]
121

122. S.No.
(1)
INCOME-TAX
AUTHORITY
(2)
HEADQUARTERS
(3)
AUTHORITY UNDER
THE PROHIBITION OF
BENAMI PROPERTY
TRANSACTIONS ACT,
1988
(4)
TERRITORIAL
AREA
(5)
1(i) Jt. CIT/ Addl.CIT,
Chandigarh
(ii) ACIT/ DCIT,
Chandigarh
(iii) ITO, Chandigarh
Chandigarh (i) Approving Authority
(ii) Initiating Officer
(iii) Administrator
Areas within the
limits of the
States of Haryana
and Himachal
Pradesh and
Union territory of
Chandigarh
2 (i) Jt. CIT/ Addl.CIT,
Ludhiana
(ii) ACIT/ DCIT,
Ludhiana
(iii) ITO, Ludhiana
Ludhiana (i) Approving Authority
(ii) Initiating Officer
(iii) Administrator
Areas within the
limits of the
States of Jammu
and Kashmir and
Punjab
122

123. S.No.
(1)
INCOME-TAX
AUTHORITY
(2)
HEADQUARTERS
(3)
AUTHORITY UNDER
THE PROHIBITION OF
BENAMI PROPERTY
TRANSACTIONS ACT,
1988
(4)
TERRITORIAL
AREA
(5)
3 (i) Jt. CIT/ Addl.CIT, Unit-
1 & 2, Delhi
(ii) ACIT/ DCIT, Unit-1 &
2, Delhi
(iii) ITO, Unit-1 & 2, Delhi
Delhi (i) Approving Authority
(ii) Initiating Officer
(iii) Administrator
Areas within the
limits of the
National Capital
Territory of Delhi
4 (i) Jt. CIT/ Addl.CIT,
Jaipur
(ii) ACIT/ DCIT, Jaipur
(iii) ITO, Jaipur
Jaipur (i) Approving Authority
(ii) Initiating Officer
(iii) Administrator
Areas within the
limits of the State
of
Rajasthan
123

124. STANDARD OPERATING
PROCEDURES (SOP) ON
IMPLEMENTATION OF
PBPT ACT ISSUED BY
CBDT.
124

125. CONSTITUTION OF BENAMI
PROPERTY UNITS (BPU S):
•24BPUscreatedacrossthecountryunderthechargeofPrincipleDIT
(Investigation).
•EachBPUtoconsistof:-
oAdditional/JointCIT(BenamiProhibition)
oDeputy/AssistantCIT(BenamiProhibition)
oITO(BenamiProhibition)
oOtherOfficials/Officers(BenamiProhibition)
125

126. DUTIES & FUNCTIONS OF BPU:
•AllfunctionsunderthePBPTAct:-Duties&functionsofIO/AAandadministrator.
•CriminalProsecutionrelatedmonitoringandcoordinationfunctionsunderBlack
MoneyAct&Income-taxAct:-
oBuildingtherequisitecapacityinmattersofcriminalproceedings.
oFacilitationinfilingofprosecutioncomplaintsbytheOfficersofInvestigationDirectoratesin
termsofoverseeingthedraftingofcomplaints&coordinationbetweenDDIT/ADIT
investigatingaparticularcasefromwhichtheprosecutionhasarisen,ProsecutionCounsels&
thecourtforfilingthesame.
oCoordinationbetweentheCourts&theofficersregardingtohearingofprosecutioncases,
keepingtrackofdates&natureofhearingandkeepingtheOfficersconcerned&Prosecution
Counselsinformed.
126

127. DUTIES & FUNCTIONS OF BPU….
oFacilitationoflogistics,includingarrangingrelevantcaserecordsinadvanceforreferenceof
theOfficersconcerned&othersasandwhenrequired,andbriefingsandtheirproduction
beforethecourts,ifrequired,incoordinationwithProsecutionCounsels.
oProcessingofmattersrelatingtopaymentofthefeesofProsecutionCounselsengagedbythe
InvestigationDirectorates.
oCoordinationbetweentheOfficersconcernedandtheStandingCounsels/Othercounselsin
allthosecaseswhereWritPetitionshavebeenfiledagainstprosecutioncomplaintsof
InvestigationDirectorates,includingwithregardtohearingofsuchcases,keepingtrackof
dates&natureofhearingandkeepingtheOfficersconcerned&ProsecutionCounsels
informed.
oAnyotherrelatedmatterassignedbythePDIT(Inv)concerned.
CONTD…
127

128. THANK YOU!!!
Presented by : CA. Sanjay Kumar Agarwal
Email Id : [email protected]