The Initiating Officer passed the order holding that petitioners are benamidar on the ground that the share holders are beneficial owners . The petitioner challenged the said order . Allowing the petition the Court held that , once land had been surrendered and order had been passed by the Development Authority under section 90B of the Rajasthan Land Revenue Act, 1956 and the land had been converted from agricultural to commercial use and registered lease deed had been executed by the Development Authority in favour of the company, the transaction was not a benami transaction. Moreover the proceedings initiated after ten years of the purchase were highly belated. The action of the respondents in attaching the commercial complex which had been leased out to the company by the Development Authority was illegal and unjustified and without jurisdiction.
Kalyan Buildmart Pvt. Ltd. v . Initiating Officer, Dy. CIT (Benami Prohibition) (2021)439 ITR 62//( 2022) / 285 Taxman 335 (Raj)(HC)
Prohibition Of Benami Property Transactions Act, 1988
S. 3 : Prohibition of benami Transactions — Purchase of agricultural land – Act not applicable to companies — Action under Act should be taken within reasonable period – Provisional attachment order was set aside [S. 2(12), 2(24), 19(1)(b), 23, 24(4), Limitation Act , 1963, Rajasthan Land Revenue Act , 1956 , S 90B Art , 226 ]