Co-operative society's mandatory reserve and share capital fixed deposits with banks-interest treated as business income under 80P(2)(a)(iii) deductio...
Income tax reassessment reopening after four years on investigation tip, without s.147 proviso disclosure failure, struck down as borrowed satisfactio...
Analysis focuses on benami transaction allegations and validity of a provisional attachment under the PBPT Act, 1988. The author finds the Initiating Officer failed to discharge the statutory burden to identify a benamidar, beneficial owner, the original benami property, or traceable proceeds; provisional attachment of bank accounts therefore suffers fundamental infirmities. Treating bank balances as equivalent value is rejected as inconsistent with the statutory scheme. Reliance on investigations by an external revenue authority without independent inquiry is insufficient to establish benami elements. Consequently, invocation of the PBPT Act to substitute for regulatory or fiscal breaches is unwarranted and meritorious benami findings were not made.
Analysis focuses on benami transaction allegations and validity of a provisional attachment under the PBPT Act, 1988. The author finds the Initiating Officer failed to discharge the statutory burden to identify a benamidar, beneficial owner, the original benami property, or traceable proceeds; provisional attachment of bank accounts therefore suffers fundamental infirmities. Treating bank balances as equivalent value is rejected as inconsistent with the statutory scheme. Reliance on investigations by an external revenue authority without independent inquiry is insufficient to establish benami elements. Consequently, invocation of the PBPT Act to substitute for regulatory or fiscal breaches is unwarranted and meritorious benami findings were not made.
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