During relevant previous year, assessee-company along with a person Rajiv Rattan\u00a0 purchased a property. The property purchased by assessee which had 95% stake in property was let out to\u00a0 Raajiv Rattan\u00a0 who had 5% stake in property for a monthly rent. During the course of assessment proceedings, the Assessing Officer alleged that the assessee acted as a Benamidar for beneficial owner of Rajiv Rattan\u00a0\u00a0\u00a0 for property purchased and thus provisions of prohibition of Benami Properties Transaction Act were clearly applicable in case of assessee company.\u00a0 Tribunal held that purchase of property by\u00a0 Rajiv Rattan\u00a0\u00a0\u00a0 was not inaccurate as he was one of joint owners of property as per registered sale deed. This fact was disclosed by assessee company itself in its books of accounts. Further, having acquired property, assessee company could have given it on rent to anybody and would have received fair market rentals. By giving it to Rajiv Rattan\u00a0\u00a0\u00a0 nothing turned against assessee company. Assessee company had duly recorded asset as well as liabilities being source of acquisition of property in its audited books of accounts and assessee company was also seeking to maintain and protect its assets out of its own resources. Accordingly, Tribunal held that it could not be said that assessee company was not real owner of property and transaction entered into by assessee company could not be classified as benami transaction.\u00a0 (AY. 2015-16)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 143(3) : Assessment-Purchase of property-Joint owners-Disclosed in the books of accounts of the Company-Transaction cannot be held to be Benami. [Prohibition of Benami Property Transactions Act, 1988, S. 2(9),24) <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-43288","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-bgc","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43288","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=43288"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43288\/revisions"}],"predecessor-version":[{"id":43289,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43288\/revisions\/43289"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=43288"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=43288"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=43288"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}