| Question And Answer | |
|---|---|
| Subject: | Benami Prorperty |
| Category: | Income-Tax |
| Querist: | BKS |
| Answered by: | Research Team |
| Tags: | Benami, Jewellery |
| Date: | February 23, 2023 |
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 ?
(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 .