Allowing the appeal the Court held that ; purchase of property from known source in the name of wife will not be a benami property. Husband will be de jure owner and not of his wife who will be de facto owner in whose name title deed exists, it is legally permissible for a person to purchase an immovable property in name of his spouse from his known sources . Order of lower Court is set aside.
Manoj Arora v. Mamta Arora (2018) 258 Taxman 1 (Delhi)(HC)
Benami Property Transactions (Prohibition) Amendment Act, 2016.
S. 2(9) : Benami Transactions- Purchase of property from known source in the name of wife will not be a benami property- Husband will be de jure owner and not of his wife who will be de facto owner in whose name title deed exists, it is legally permissible for a person to purchase an immovable property in name of his spouse from his known sources. [ S.2(9)(A)(b)]
Very Effective