Taxmann Law Relating To Prohibition of Benami Property Transactions Act 1988 By Srinivasan Anand G Edition September 2024

Law Relating to Prohibition of Benami Property Transactions

Law Relating to Prohibition of Benami Property Transactions

This book is an authoritative legal resource providing a comprehensive, section-wise commentary on the Prohibition of Benami Property Transactions Act, 1988 (PBPT Act).

It is tailored to the needs of practitioners across various domains, including civil law, criminal law, company law, and income tax, presenting complex legal provisions in an accessible and practical format.

The Present Publication is the 7^th Edition and has been amended by the Finance (No. 2) Act 2024. It also discusses the implications of Section 107 of the Bharatiya Nagarik Suraksha Sanhita, 2023, on the seizure and confiscation of benami properties, providing readers with the most current and relevant legal analysis. This book is authored by CA Srinivasan Anand G with the following noteworthy features:

Section-Wise Commentary in FAQ Format

• The book adopts a reader-friendly approach, presenting each section of the PBPT Act in a question-and-answer format. This layout simplifies intricate legal concepts and statutory provisions, making them easier to understand and apply. Each section includes a detailed legislative history and the effective date of applicability based on case law, helping readers track the evolution and impact of the law

Comprehensive Case Law Analysis

• Featuring an exhaustive compilation of relevant case laws from the Supreme Court, High Courts, ITAT, Adjudicating Authorities, and Appellate Tribunals, this book provides an analysis of the judicial interpretations of Benami transactions. It includes significant cases like the landmark Supreme Court judgment in Ganpati Dealcom, providing readers critical insights into the judicial stance on Benami property issues. The book also analyses case laws from similarly worded provisions in other statutes, such as the Income Tax Act and the Civil Procedure Code, enhancing its practical value

Detailed Examination of Pleadings and Legal Strategies

• This book discusses the specific pleadings required to avail exceptions or exclusions to Benami transactions, providing a thorough analysis based on established case laws. It guides practitioners on the nuances of drafting effective legal pleadings and strategies in defending against allegations of Benami transactions

Ready Reckoners for Quick Reference – To assist practitioners in quickly finding the information they need, the book includes:

• A Ready Reckoner detailing the relatives in whose names property can be held without triggering the Benami law
• A dedicated section on Benami share transactions, explained in light of the relevant provisions of the Companies Act, 2013, with a separate reckoner positioned at the beginning for ease of access
• An Alphabetical Ready Reckoner to facilitate quick navigation through the various legal provisions related to Benami transactions

Analysis of Shell Companies in Benami Transactions

• The book analyses the role of shell companies in Benami transactions, discussing how these entities are used to circumvent the law and the judicial outcomes of such cases. It provides comprehensive coverage of legal strategies to combat the misuse of shell companies in the context of Benami property holdings

Confiscation and Civil Asset Forfeiture

• A pivotal section of the book discusses the nature of confiscation under the civil asset forfeiture regime of the PBPT Act, thoroughly examining how confiscation proceedings are handled both in India and internationally. The book provides a comparative analysis, helping practitioners understand the nuances of property confiscation and the broader implications of civil asset forfeiture laws

Procedural Guidance for Practitioners – The book provides detailed procedural guidance, covering:

• Processes before the Initiating Officer under Section 24, including responses to Show Cause Notices and handling of Provisional Attachment Orders
• Detailed procedures before the Adjudicating Authority under Section 26, outlining the rights of the noticee to access materials that led to the attachment of the property and subsequent referrals
• An extensive discussion of appellate, revision, and rectification remedies available under the PBPT Act, equipping readers with practical knowledge to effectively understand the legal processes

Valuation Rules and Determining Fair Market Value

• It includes a thorough discussion of the valuation rules and methods used to determine the fair market value of Benami properties, which is critical for imposing fines under Sections 53 and 54. The book explains the valuation techniques with supporting case laws, providing a clear framework for practitioners dealing with valuation disputes

Interaction with Other Laws – The book offers a comprehensive overview of how the PBPT Act intersects with other major laws, guiding the relevant provisions of:

• Companies Act, 2013 – Contextual analysis of Benami share transactions and compliance issues
• Fugitive Economic Offenders Act, 2018 – Discusses enforcement overlaps and asset confiscation measures
• Income Tax Act, 1961 – Covers taxation implications and provisions with similar wording
• Indian Penal Code, 1860 and Civil Procedure Code, 1908 – Analyses procedural and substantive intersections with criminal and civil law
• Criminal Procedure Code, 1973 and Prevention of Money-laundering Act, 2002 – Details on criminal implications and connections with money laundering cases
• Transfer of Property Act, 1882 and Indian Trusts Act, 1882 – Provides analysis of property and trust-related legal frameworks

Elaborate Discussions on Controversial Legal Issues

• The book thoroughly examines contentious legal issues, such as the controversy over the dating of orders passed by authorities—specifically whether orders were passed within the prescribed limitation period or were ‘backdated’ to appear compliant. It also addresses the absence of case laws under certain provisions, filling gaps by discussing similar or identically worded provisions from other laws

About the author

Srinivasan Anand G.

Srinivasan Anand G is a distinguished chartered accountant with extensive accounting, auditing, and corporate law expertise. He holds qualifications from all three premier professional institutes in India—the Institute of Chartered Accountants of India (ICAI), the Institute of Cost Accountants of India (ICWAI), and the Institute of Company Secretaries of India (ICSI).

Srinivasan is a sought-after guest faculty member, regularly sharing his knowledge at prestigious institutions, including the Regional Training Institute of the Comptroller & Auditor General of India, Western Coalfields Ltd., Punjab National Bank, and various Zonal Training Centres. He is also a respected speaker at Study Circle Meetings organized by the Nagpur Branch of ICAI, where he provides valuable insights into complex legal and financial topics. His multifaceted expertise and commitment to education make him a recognized authority in his field.