TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 1686
X X X X Extracts X X X X
X X X X Extracts X X X X
....f the currency notes by the Government of India. A survey was conducted under section 133A of the Income Tax on 21.12.2021 at Axis Bank, Mem Nagar Branch. During the course of survey, various accounts were identified in the name of Afzalbhai Savjani Sadikali and many others including Tejas C Desai. It was found that they deposited huge cash in the bank account maintained with Axis Bank in old high denomination notes. The accounts were managed and controlled by two groups, out of which first was led by Afzalbhai Sadikali Savjani and Tejas C. Desai and other was led by Zahir Abbas Kasamali Mithawala and Aftab H. Kazi. The statements were recorded under section 131 of Income Tax Act where in Afzalbhai Savjani Sadikali and Tejas C Desai apart from others admitted that they had deposited cash in dummy accounts. The cash did not belong to them and even it was not earned out of the business activities. In fact, cash was received from different middlemen/beneficiaries and after depositing, it was to be transferred through RTGS to the beneficiaries. 4. On further analysis, it was found that a sum of Rs. 13.50 crores had been deposited in the bank accounts of the proprietorship firm of M/....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e notice under section 24(1) was on the basis of the information received from DD, IT, Mumbai. Thus, the notice was issued based on the borrowed information and therefore on the aforesaid ground also, the impugned order deserves to be set aside. 9. The learned counsel for the appellant made statement to justify receipt of Rs. 50 lakhs in the bank account of the appellant firm. It is said to be out of land filling work at Bhavnagar. The consideration was paid to him by way of RTGS and he was not aware that Yusuf Bai was the proprietor of M/s Green Traders. In any case, the money was given to the appellant towards the work performed by the firm for earth-filling. The aforesaid aspect has not been considered by the Adjudicating Authority while confirming the provisional attachment order. 10. It is lastly submitted that no evidence was brought forward to show relation of the appellant with Naleen Bhai Angadiya to put cash amount in the account of M/s Green Traders so as to be transmitted to the appellant later on. No link could be established to show that appellant had given cash amount to the person involved in conversion of demonetized money. Therefore, on the aforesaid ground ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he case of benami transaction because the amount of consideration was paid by the beneficial owner in the name of benamidar for the purpose of future benefits and accordingly provisional attachment order of the property was caused and reference was made to the Adjudicating Authority. 15. The learned counsel for the appellant submitted that no reasons to believe was recorded in writing therefore the mandate of section 24(1) has not been followed. For ready reference, section 24(1) is quoted hereunder: - 24 (1) Notice and attachment of property involved in benami transaction.- Where the Initiating Officer, on the basis of material in his possession, has reason to believe that any person is a benamidar in respect of a property, he may, after recording reasons in writing, issue a notice to the person to show cause within such time as may be specified in the notice why the property should not be treated as benami property. 16. The argument was contested by the respondents by referring to show cause notice under section 24(1) placed on record where para 8 refers to reasons to believe specifically recorded and even conveyed to the appellant along with the show caus....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t statements, it emerges that Green Traders, was an entity created only on paper to route funds received from the various persons/entities. From the sworn statements of member as discussed in preceding Paras, above reveal that you have let Tejas C Desai to control and operate your bank account in lieu of money. Based on the above analysis and facts, I have reason to believe that the afore mentioned transactions by which the cash Rs. 50,00,000/- was deposited in the bank account of Green Traders Prop. Amir Yusuf Pathan and subsequently transferred to bank account of Bajrang Traders. Amrut Ranchhouttar Patel as listed in Table-1 above was a Benami transaction as clarified in section-2(9) of the PBPT Act. 1988. 8.2 The facts and circumstances as narrated above also gives me a reason to believe that Green Traders, Prop. Amir Yusuf Pathan is a Benamidar as defined in Section 2(10) of the PBPT Act and the above referred movable property as listed in Table-1 above was the Benami Property as defined in Section 2(8) of the PBPT Act. Further, from the statement recorded of you, it clearly emerges that you have followed the directions of Shri Tejas C Desai in signing various document....