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Court upholds sanction under Prohibition of Benami Property Act. Conflicting statements lead to dismissal. The court upheld the sanction for prosecution under Section 55 of the Prohibition of Benami Property Transaction Act, 1988. It found the petitioner's ...
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Court upholds sanction under Prohibition of Benami Property Act. Conflicting statements lead to dismissal.
The court upheld the sanction for prosecution under Section 55 of the Prohibition of Benami Property Transaction Act, 1988. It found the petitioner's conflicting statements about the ownership of the cash and inconsistencies in explaining the existence of the employer Sultan Foumi. The court deemed it premature to interfere with the sanction, stating that the contradictory statements would be addressed during the prosecution. The writ petition was dismissed, with no costs awarded, and the miscellaneous petition was closed.
Issues: Challenge to sanction for prosecution under Section 55 of the Prohibition of Benami Property Transaction Act, 1988.
Facts Leading to Petition: - Petitioner intercepted with cash, claimed bag belonged to employer Sultan Foumi. - Petitioner native of Ramanathapuram, employed by Sultan Foumi in Chennai. - Petitioner declared benamidar without evidence, claims no ownership of seized cash. - First respondent granted sanction without proper consideration, petitioner filed writ of certiorari.
Petitioner's Argument: - Recorded statement under Income Tax Act states money belonged to employer. - Petitioner unable to bring employer, provided contact details, employer not found. - First respondent failed to consider petitioner's statements, granted sanction hastily.
Respondents' Argument: - Property deemed benami, show cause notice issued, property provisionally attached. - Petitioner's conflicting statements about ownership of cash led to sanction for prosecution. - Statutory definitions of benami transactions applied to petitioner's case.
Judgment: - Court finds premature to interfere with sanction for prosecution. - Contradictory statements by petitioner to be addressed during prosecution. - Existence of employer Sultan Foumi questioned, petitioner's explanations deemed inconsistent. - Petitioner required to explain inconsistencies during further proceedings. - Writ petition dismissed, no costs awarded, miscellaneous petition closed.
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