Benami notice jurisdiction and whether cash can be treated as benami property were put in issue in the High Court.

A jurisdictional objection was raised to a notice under the Prohibition of Benami Property Transactions Act on the ground that the same cash had already been assessed under the Income-tax Act. The petition also questioned whether cash can constitute benami property under the statutory definition and whether the respondent's own case that the cash belonged to the petitioner affected the benamidar enquiry. The matter was treated as requiring consideration, counter affidavit was called for, and further proceedings under the notice were stayed until further orders.

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Issues: Whether notice under Section 24 of the Prohibition of Benami Property Transactions Act, 1988 was without jurisdiction in view of the petitioner having already been assessed under Section 69 of the Income-tax Act, 1961; whether cash can fall within the definition of benami transaction; and whether the respondent's case that the cash belonged to the petitioner affected the issue of benamidar.

Analysis: The petition raised a jurisdictional objection to the impugned notice on the ground that the same amount had already been subjected to assessment under the Income-tax Act. It was also pointed out that the subject matter was cash, with the contention that cash does not answer the statutory definition of benami transaction. A further point noticed was that, on the respondent's own case, the cash belonged to the petitioner, which was said to bear upon the applicability of the definition of benamidar. The matter was held to require consideration and counter affidavit was called for.

Outcome: Further proceedings pursuant to the notice were stayed till further orders, and the petition was listed for a later date.

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