Benami property found where possession, contemporaneous papers and unexplained receipts prevailed, so attachment upheld.
Whether seized cash and valuables constituted benami property was decided by reference to possession, contemporaneous loose papers and recorded statements showing receipt and transfer to a family member; absence of corroborative documentary proof (vouchers, sale receipts, registration) and failure by appellants to satisfactorily disclose lawful source shifted the onus and supported a finding of benami arrangement. Consequently the attachment of the property and its confirmation by the adjudicating authority were held justified and the challenge by the appellants was rejected.
Issues: Whether the cash and valuables recovered during search formed part of a benami transaction and whether the attachment of the property and its confirmation by the Adjudicating Authority were justified.
Analysis: The material includes seized cash of Rs. 1,23,63,000/-, valuables, contemporaneous loose papers ('Katchcha Paper') documenting monthly receipts, and statements of the persons present at the search. The appellants claimed ownership by disclosure in income-tax returns and by a family settlement dated 01.10.2008; however, no documentary evidence (vouchers, bills, sale receipts) was produced to show sale proceeds or other lawful source for the seized cash. The family settlement relates to valuables but does not account for the cash; registration and corroborative proof for the settlement and for any alleged sale were not furnished. The contemporaneous papers and recorded statements indicate receipt and transfer of money by the government officers to the mother, supporting a finding that the cash was transferred as a benami arrangement. Once the respondent established possession and indicia of benami transfer, the appellants bore the onus to satisfactorily disclose the source, which they failed to do.
Conclusion: The finding that the seized cash and valuables formed part of a benami transaction is upheld and the attachment and its confirmation are justified; decision is against the appellants and in favour of the respondent.
TaxTMI 
AI Drafter ✕
TaxTMI 
