Alphabetical Reckoner to Benami Law I-9
Benami Transactions in Shares Reckoner I-61
Section-wise Table of Cases I-63
I
II PROHIBITION OF BENAMI TRANSACTIONS
3. benami
8. to 17. [Omitted by the Finance Act, 2021, w.e.f. 1-7-2021]
CHAPTER IV
ATTACHMENT, ADJUDICATION AND CONFISCATION
24. benami
25.
26. benami
27. benami
CHAPTER V APPELLATE TRIBUNAL
CHAPTER VI SPECIAL COURTS
50.
CHAPTER VII
OFFENCES AND PROSECUTION
53. benami 685 54. 718 54A. 721
54B. 724 55. 726
55A. 728
CHAPTER VIII MISCELLANEOUS
APPENDICES
APPENDIX 1 : BENAMI 771
APPENDIX 2 : BENAMI 781
APPENDIX 3 : 799
APPENDIX 4 : 823
APPENDIX 5 : 838
APPENDIX 6 : 839 I-8
2D:
BENAMI
TRANSACTION [CLAUSE (9) OF SECTION 2]
2D.1 WHAT IS A ‘BENAMI TRANSACTION’?
benami
‘benamidar Sundaram Nadar Sukumaran
‘benamidar’ ‘benamidar Ranagappa Ranagaswami
Meaning of ‘benami transaction’.
benami
The essential legal characteristic of these transactions is that there is no intention to benefit the person in whose name the transaction is made. The name of that person, popularly known as the ‘benamidar’, as the Privy Council pointed out is simply an alias for that of the person beneficially interested.
alias
G. Bahadur K. Visakh, Asstt. CIT, Chennai
i.e.
See Para 2D.2
i.e. -
2D.2 WHAT IS THE DEFINITION OF ‘BENAMI TRANSACTION’?
See Flowchart below (a) a benamibenami a i ii 9 benami
There are 4 categories of Benami Transactions as defined in section 2(9) of the PBPT Act:
Explanation below the said clause (9) benami
Subclause of clause ( ) Nature of Benami Transaction covered Transactions excluded from scope of ‘benami transaction’
A CATEGORY I benami transactionbenami i ii
Subclause of clause ( )
Nature of Benami Transaction covered Transactions excluded from scope of ‘benami transaction’
B CATEGORY II - benami transaction
Para 2DB.13
C CATEGORY III - benami transaction
2DC.11
D CATEGORY IV - benami transaction-
Type of Benami Transaction
Benamidar
Beneficial owner
Transaction or arrangement in respect of a property
Consideration
Exceptions or exclusions, if any
Other relevant statutes, if any(i) (iv)
Explanation -
Explanation-
Explanation -
S. 2 84
Type of Benami Transaction
Benamidar
Beneficial owner Transaction or arrangement in respect of a property
Consideration
Exceptions or exclusions, if any
Other relevant statutes, if any
Explanation ---
2D.3 IS THE DEFINITION OF SECTION 2(9) RETROSPECTIVELY APPLICABLE TO TRANSACTIONS ENTERED INTO PRIOR TO 1-11-2016? at once, -
[Tulsiram Asstt. CIT
Arun Das Smt. Aparna Das Macro Entertainment (P.) Ltd. Union of India K. Nagarajan The Adjudicating Authority
Union of India Ganpati Dealcom (P.) Ltd. -
Tulsiram Arun Das, Macro Entertainment K. Nagarajan
85 Para 2D.3
Ganpati Dealcom (P.) Ltd. v. Union of India
Shri Joseph Isharat Mrs. Rosy Nishikant Gaikwad
benamiAnis Ur Rehman Mohd. Tahir
Joseph Isharat Mrs. Rozy Nishikant Gaikwad supra .
2D.3A WHETHER THE DEFINITION IN SECTION 2(9) WILL APPLY TO SUITS PENDING ON 1-11-2016?
b iiide jure de facto
Manoj Arora Mamta Arora
2D.4 WILL EXCEPTIONS (i) TO (iv) IN SECTION 2(9)(A) AS REGARDS BENAMI TRANSACTIONS APPLY TO BENAMI TRANSACTIONS COVERED BY SECTION 2(9)(B), 2(9)(C) AND 2(9)(D) ALSO?
2D.5 WHAT IS THE DIFFERENCE IN DEFINITION IN SECTION 2(9) VISA-VIS THE OLD DEFINITION IN SECTION 2(a) OF THE PRE-AMENDED ACT?
(a) is transferred to, or is held by (b) held (a)
Thus, there are two very noteworthy changes vis-a-vis the old definition:(a) (b) (b)
S. 2 88
The words “property is transferred to” in section 2(a) implied transfer of both title and possession of property. In new definition in section 2(9)(A), these words have been replaced by the words “property is transferred to, or is held by” which cover cases of both transfer of title only and transfer of both title as well as possession. Besides, after the 2016 amendments, the term benamidar covers a mere ‘name lender’.Therefore, in view of the above changes in definitions of benami transaction and benamidar, it does not matter if possession of property is given or not given to the benamidar.
2D.6
WHAT IS THE DISTINCTION BETWEEN BENAMI TRANSACTIONS & SHAM TRANSACTIONS?
Sree Meenakshi Mills Ltd. CIT
2D.7 WHETHER THE BENAMI ACT APPLIES TO SHAM TRANSACTIONS?
Position under the BPTA (a)
Ouseph Chacko Raman Nair Raghavan Nair(a)
Position under the PBPT Act (a)
Jilubhai Nanabhai Khjachar State of Gujarat -
Ganpati Dealcom Union of India Ganpati Dealcom (P.) Ltd. now condemns not only those transactions which were traditionally denominated as benami, rather a new class of fictitious and sham transactions are also covered under the same -
2D.7A
ELEMENTS OF A ‘BENAMI TRANSACTION’
Category I
Para 2DA.1 to Para 2DA.27
Category II
2DB.1 to Para 2DB.14
Category III
Para 2DC.1 to Para 2DC.12
Category IV -
Para 2DD.1 to Para 2DD.10benami benami
benami
Benamidar -
Benamidar -
Beneficial owner
2D.8 IS EVERY CASH TRANSACTION A BENAMI TRANSACTION?See
Para 2D.8
i.e.,
P. Ezhilpandian K. Visakh, Dy. CIT
In G. Bahadur K. Visakh, Asstt. CIT
The characteristic of a ‘benami’ transaction is that there must be a mere lending of name without any intention to benefit the person
in whose name it is made i.e. a mere name lender. The mischief sought to be punished by the Act are only such transactions which have a name lending element without deriving any benefit therein i.e. ‘benami’ transactions.