2025 (11) TMI 1577

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....he Act of 1988"), a challenge has been made to the order dated 03.04.2023 passed by the Adjudicating Authority confirming the Provisional Attachment Order ('PAO') and answering the reference against the appellant. Brief facts of the case: 2. This matter pertains to a sum of Rs. 71,50,000 deposited in cash in Axis Bank Account No. 916020042664220. A survey under Section 133A of the Income-tax Act was conducted on 21.12.2016 at Axis Bank, Memnagar Branch Ahmedabad. During the course of survey of various bank accounts, it was identified that six persons, namely Afzalbhai Savjani Sadikah, Aftab H Kazi, Tejas C Desai, Sayeed Babhubhai Sisodiya, Zahir Abbas Kasamali Mithawala and Sheikh Imran Abdul Rashid have deposited a huge cash of old H....

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....of Rs. 8.80 Crore was deposited in the bank account of M/s Shiv Traders with the help of Shri Imran Abdul Rashid Sheikh and Saiyeed Babhubhai Sisodiya and confirmed that there was no business activity in the account of M/s Shiv Traders, rather, those persons admitted that they had deposited the cash of Rs. 32.82 Crore in various benami accounts including Rs. 8.80 Crore in the account of M/s Shiv Traders which include Rs. 71,50,000/- later on transferred in the account of Smt. Mina Kiranbhai Shah. 4. It was found to be out of benami transaction where cash was first deposited in the bank account and was transferred back to beneficial owner. Thus, a case of benami transaction was made out. The Adjudicating Authority accordingly confirmed th....

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.... Findings of the Tribunal: 8. Brief fact pertaining to the case has been given in opening paras where in the income-tax survey on 21.12.2016, it was found that in various bank accounts operated by six persons named earlier, huge amount of cash was deposited by putting Old High Denomination Notes. Those accounts were found to be dummy, managed and controlled by two groups out of which first group was led by Afzalbhai Savjani Sadikali and other by Zahir Abbas Kasamali Mithawala. The statements of all the persons were recorded. It was admitted that they were depositing cash in the bank accounts of M/s Shiv Traders. The proprietor of the Firm admitted about deposit of cash with the arrangement to receive Rs.  10000/- per month for use ....

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....o justify the receipt of the amount. In fact, using the banking channel, the group of persons got involved to convert demonetized money by the process of bank. The appellant persuaded herself or through husband to get demonetized money to be monetized and entered into the benami transaction under which the property was first transferred to benamidar through the persons and thereupon received back by the beneficial owner as future benefit. Thus, we do not find any error in the impugned order holding a case of benami transaction. 10. Ld. Counsel for the appellant has referred to the action of the Income Tax Department under Section 148 of the Income-tax Act, 1961 in ignorance of the fact that the subsequent assessment or surrender of money....