Question And Answer
Subject: Benami Prorperty
Querist: BKS
Answered by:
Tags: ,
Date: February 23, 2023
Query asked by BKS

When an employer  owns up  jewellery found and seized during a search from one locker in the name of an employee ,

1] can addition be made in the hands of both or either or none ?

2] Will answer 1 change if jewellery is appearing in books of employer ?

3] Will answer 2 change if only grams tally but not items ?

4]  can it be treated benami property ? If yes, in whose hands ?


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Answer given by

(a).Addition cannot be made in both the hands . When the employer owns the ownership . The Department can made addition in the hands of employer if the explanation is not satisfactorily . If it is found in the locker of the employee , what statement the employee has given is very relevant . The Department may make protective assessment in the hands of the employee .

(b).If it is recorded in the books of account , that will be an evidence which will prove beyond doubt that it belongs to employer .
( c). Depends on facts of the case . How employer makes entries in the regular books of account .
(d).Section 2((9) of the Prohibition of Benami Property Transaction Act , 1988 defines the “ Benami Transactions “ . As per the definition clause (d) a transaction or an arrangement in respect of a property , where the person providing the consideration is not traceable or fictitious . On the facts when the Employer admits it belong to him it cannot be held to be benami .

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