Article
Will the recent ruling on Benami law dig up old deals?
By Janane G
The article in this issue of Direct Tax Amicus discusses a recent ruling of the Delhi Appellate Tribunal in the case of Prism Scan Express Private Limited. According to the author, this decision would be a wakeup call to all those who were under the belief that their old trades would not come under the glare of the Benami Law, taking shelter of the decision of the Supreme Court in Ganpati Dealcom Pvt. Ltd. v. UoI which had held that the Benami Transactions Prohibition (Amendment) Act, 2016 shall not apply retrospectively. The Tribunal interpreted the word ‘held’ as appearing in the definition of the term ‘benami transaction’ to hold that even if the property was transferred to a benamidar before 2016, the same can still be regarded as a ‘benami transaction’ if such property is continued to be held by the benamidar post 2016. The author notes that the Supreme Court had not discussed the implication of the word ‘held’, and believes that the latest ruling has opened a pandora’s box and may lead to fresh wave of proceedings involving attachments/ confiscations and criminal prosecution in respect of alleged benami properties.
Notifications & Circulars
- Income-tax Return Form-6 for the AY 2024-25 amended
- Individuals and HUFs liable to file their ROI under Section 44AB, enabled to verify their return using DSC or under EVC
Ratio decidendi
- Trust – Section 11 exemption available to a trust even if audit report in Form 10B is filed after RoI, but before assessment proceedings – Gujarat High Court
- Management/processing fee in respect of loan, is in the nature of ‘interest’ under Section 2(28A) and is thus exempt under Article 11 of India-Germany DTAA – ITAT New Delhi
- ‘Live Transmission fee’ is not taxable under the head ‘Royalty’ – Delhi High Court
- Charitable purpose – Conferences conducted by Chamber of Commerce for a fee are covered under Section 2(15) – ITAT Kolkata
- Compensation received on termination of agency, distribution & manufacturing rights is ‘business income’ – ITAT Mumbai
