AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2026 (4) TMI 807
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....Others'. The registered address of this company is Office No. 2, 2nd Floor, Daulat Bhavan, 407, Kalbadevi Road, Mumbai - 400002. On perusal of the returns of income and the ITR details available with the Income Tax Department, it was observed that the benamidar M/s Brook Multimedia Pvt. Ltd. (PAN: AAECB3481F) is holding the following benami property in its name: S. No. Description of property Date of Registration and Doc. No. Consideration Purchaser 1. B 1101, Asmi Realtors, Mahindra Eminent, SV Road, Goregaon (West), Mumbai 400104. - 1,82,82,064 The Directors of the benamidar company at various points were as follow: Sr. No. Director Name Appointment Date Cessation Date 1. Dinesh Kumar Sharma 16.12.2010 20.01.2011 2. Pradeep Prajapati 16.12.2010 20.01.2011 3. Aruna Chudaman Umredkar 30.11.2010 20.01.2011 4. Harish Sharma 30.11.2010 16.12.2010 5. Gangadhar Sail 20.01.2011 05.04.2018 6. Pankaj Gupta 20.01.2011 30.09.2016 7. Pramila Gupta 08.06.2016 Till date 8. Payal Gupta 05.04.2018 Till date The current shareholder of the benamid....
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....ith each equity share of Rs. 10 allotted at Rs. 240. The benamidar was not conducting any actual business and as such, the benamidar did not possess any attractive profile that would warrant subscription of its shares at such high premium, but still the shares were subscribed at huge premium by following shareholders in FY 2010-11 at huge premium: S. No. Name of the shareholder No. of shares sold to the shareholders Premium (Rs. 240 per share) 1. Caren Trading Pvt. Ltd. 42000 10080000 2. Sarveshwar Commercial Pvt. Ltd. 40000 9600000 Total 82000 19680000 Subsequently, the shareholdings of the benamidar company underwent change many times as during the course of years and the final shareholding as on 31.03.2018 is as under: Sr. No. Name Number of shares held % of holding 1. Pawan Gupta 25500 27.72 2. Pramila Pawan Gupta 36000 39.13 3. Payal Pawan Gupta 30500 33.15 Total 92000 100.00 The above change in shareholding took place at Face Value, even when the benamidar company had sufficient reserves and assets in the form of immo....
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....with one having something to gain. It is clear from the above that the acquisition of the benami property by the benamidar is solely for the benefits of Gupta Family especially Shri Pawan Gupta. As these benami transactions have been made to benefit the Gupta family, who are the ultimate beneficial owners, it is evident that these transactions were entered into by the benamidar upon the instructions of Shri Pawan Gupta in collusion with Shri Amit Dalmia and Shri Ganga Dhar Sail. Hence, the consideration of the benami properties have been provided by Shri Pawan Gupta and his family members and the ultimate benefit from these properties is thus enjoyed by them. Therefore, on the basis of above discussion and facts, I.O. concluded that the transaction of acquisition of immovable property by M/s Brook Multimedia Pvt. Ltd. is satisfying all the conditions of being a Benami transaction as per the PBPT, Act, 1988 with regard to the acquisition of the following immovable assets: S. No. Description of property Date of Registration & Doc. No. Consideration Purchaser 1. B 1101, Asmi Realtors, Mahindra Eminent, S V Road, Goregaon (West), Mumbai 400104. - 1,82,82,0....
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....ompany, generated a large amount as securities premium on account of purchase of its shares with extra premium of Rs. 240 over the face value of Rs. 10 by M/s Caren Trading Pvt. Ltd. and M/s Sarveshwar Commercial Pvt. Ltd. to the extent of 42,000 and 40,000 respectively. Thereby, benamidar company generated share premium of Rs. 1,96,80,000/- (Rs.1,00,80,000 + Rs. 96,00,000) in addition to face value of the shares to the extent of Rs. 8,20,000/- (4,20,000 + 4,00,000), totaling to Rs. 2,05,00,000/-. He stressed that the real issue involved in the present case is not the specific immovable property, but the infusion of Rs. 1,96,80,000/- in the appellant company from the aforesaid two companies, without any basis seeing the fact that the appellant company is a shell company without doing any actual business and earning any annual profit and thus there was no ground to purchase its shares with high premium. He stated that the IO had clearly mentioned in the PAO that from the findings of search operations and verification of the records it was found that the shareholding pattern changed to the present form at face value of the share @ Rs. 10 each and all the shareholders are from single ....
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....pta family took over the shell company from Shri Amit Dalmia (entry operator) and his dummy director Shri Ganga Dhar Sail. Hence, the consideration of the benami properties have been provided by Shri Pawan Gupta and his family members and the ultimate benefit from these properties is thus enjoyed by them. He argued that the Adjudicating Authority dismissed the Reference for confirmation of PAO on the following ground: "7.1 Learned Counsel has stated that Benamidar has acquired a different property i.e. 201, 2nd Floor, Asmi Dramz, CTC No 339.30(P) SV Road Goregaon (w), Mumbai-62 in 2017 but same is not subject matter of present proceeding. The Ld. counsel had thus argued that the property attached was never owned by Benamidar & therefore the PAO id legally invalid. It was thus argued that it is a fatal lapse on the part of IO & on this ground only the entire reference is liable to be dismissed & quashed." Ld. counsel for the appellant pointed out Section 26 of the PBPT Act:- 26. (1) On receipt of a reference under sub-section (5) of section 24, the Adjudicating Authority shall issue notice, to furnish such documents, particulars or evidence as is considered n....
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....s under Section 24(1) and 24(3) under the PBPT Act were issued to the appellant on 24.01.2026. Prayer is accordingly made to allow the present appeal and thereby confirm the reference qua the investment of the share premium of Rs. 1,96,80,000/- utilized by the benamidar company in the form of any investment whatsoever. 4. On the other hand, Ld. counsel for the Respondents submitted that the AA passed a well-reasoned and detailed order as mentioned in para 7, 7.1 & 7.2 of the impugned order. He contended that the Appellant/IO has wrongly described the personal private property of the Answering Defendant as the property of M/s Brook Multimedia Pvt. Ltd. This shows the callous and careless approach where the appellant wrongly attached the subject property, i.e., B 1101, Asmi Realtors, Mahindra Eminent, SV Road, Goregaon (West), Mumbai 400104. In support of his contention, he pointed out Annexure R2, Agreement to Sell dated 29.08.2011 qua this property executed by M/s Aditya Agarwal in favour of respondent No.2, Pawan Gupta and his wife Pramila P. Gupta, filed with the Written Submissions filed on behalf of the Respondent. He further pointed out that this property was never acqui....
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.... This is not a mistake which can be treated as covered as under Section 63 of the PBPTA. f. Identification of correct property and its implication as a benami property is at the root of proceedings and once that is vitiated, entire proceedings goes away. g. On this ground only, the reference is being dismissed and the attachment is not confirmed." Hence, it is not conceivable as to how the appellant is aggrieved in any manner with respect to the above property which does not satisfy the elementary basic conditions/provisions of the PBPT Act w.r.t the subject property. Therefore, the entire proceedings carried out by the Appellant was illegal and void ab-initio and the present Appeal too is liable to be dismissed by the Hon'ble Appellate Tribunal. 5. After hearing the rival submissions, we have given our thoughtful consideration to the same. The relevant provisions of PBPT Act, are reproduced as under: Sec. 2[8] of the Act defines "Benami property" as "any property which is the subject matter of a benami transaction and also includes the proceeds from such property". "Benamidar" in turn, is defined u/s. 2[10] of the Act thus:....
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....hat he is involved in the business of floating shell entities for commission which provides accommodation entries through unsecured loans, bogus purchases and sales, etc and that the BD entity is also one of those concerns as well, he also admitted that all the shareholders, directors, partners and proprietors of the entities floated by him were all either his relatives or employees and that the concerns were wholly controlled and managed by him. Hence, the attachment of property, B 1101, Asmi Realtors, Mahindra Eminent, SV Road, Goregaon (West), Mumbai 400104, apparently seems to be incorrect, (in absence of any proof that the said property was transferred to the respondent no.1), instead of attaching the property No. 201, 2nd Floor, Asmi Dramz, CTC No 339.30(P) SV Road Goregaon (w), Mumbai-62. However, respondents have taken the plea that the second property is purchased by taking the loans/financial assistance from M/s Sambhavna Deal Trade Pvt. Ltd., Axis Bank, M/s Kamyabi Dealtrade Pvt. Ltd., M/s Sarvajana Properties Pvt. Ltd. M/s Manomay Commosale Pvt. Ltd., M/s Shiv Parvati Leasing Pvt. Ltd., M/s Hora Finance and Investment Pvt. Ltd., M/s Devesh Commosale Pvt. Ltd. for tot....
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.... Accordingly, this particular property is in fact purchased by respondent no.1 from the benami property/share premium of Rs. 1,96,80,000/-. Further, it is strange & dubious that the respondent company, which was incorporated & registered on 30.11.2010 was able to attract share premium within a year of incorporation to the magnitude of Rs. 240/- per share (amounting to Rs. 1,96,80,000/-), in addition to the face value of Rs. 10 (amounting to Rs.8,20,000/-), seeing the fact that it never conducted any business from 2010-2017, as apparent from its ITR from AY 2011-12 to AY 2019-20. Hence, benami investment is quite discernible. Section 2(26) of the PBPT Act, defines property as under:- "Property means assets of any kind, whether movable or immovable, tangible or intangible, corporeal or incorporeal and includes any right or interest or legal documents or instruments evidencing title to or interest in the property and where the property is capable of conversion into some other form, then the property in the converted form and also includes the proceeds from the property". In any running business concern/firm/company, the cash in hand or bank balance does not remain stagn....