Quick Summary
In a significant ruling dated November 26, 2024, the Adjudicating Authority under the Prohibition of Benami Property Transactions (PBPT) Act, 1988, upheld the Income Tax Department's power to attach assets under the anti-benami law, even if the actual owner of such properties remains unidentified. T
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FAQ :
Yes, a recent ruling has confirmed that the Income Tax Department can attach assets under the anti-benami law even if the beneficial owner remains unidentified.
The ruling by the Adjudicating Authority under the Prohibition of Benami Property Transactions (PBPT) Act upholds the Income Tax Department's power to attach benami assets without necessarily identifying the beneficial owner.
The ruling was based on a case involving five land parcels in Kakori, Lucknow, valued at over ₹3.47 crore, allegedly acquired through unaccounted cash. The Income Tax Department had provisionally attached these assets.
The Adjudicating Authority cited Section 2(9)(D) of the Act, which permits attachment of properties where the person providing the funds is 'untraceable or fictitious'.
This decision reinforces the government's strong stance against benami transactions and sets a precedent for tackling cases involving fictitious entities or unaccounted cash, demonstrating that a lack of a named beneficial owner will not prevent action.
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