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10. 2026 (8) TMI 1327 - (SAFEMA – New Delhi)
DCIT (BPU), Chennai v. Bharathi & Anr
Date of Order: 18.08.2026
Where the Benamidar admits the knowledge of the transaction and the ownership of the property by way of a statement in cross-examination before the Adjudicating Authority under Prohibition of Benami Property Transaction Act, 1988 (PBPT Act), such a statement would prevail and the transaction cannot be said to be a Benami Transaction under PBPT Act merely on the basis of statement recorded by the Benamidar in the proceedings carried out under the provisions of the Income-tax Act, 1961.
FACTS
A search was conducted on M/s. Shobhikaa Impex Pvt. Ltd. (SIPL). Based on the evidence gathered during the course of search, it was found that there was a benami transaction in the name of Smt. R. Bharathi and others.
It was found in the course of search that SIPL had inflated its expenses to reduce the taxable income by claiming bogus expenses under the head Job Work / Contractors. This was without the actual receipt of goods or services and without the actual payment to the job workers. The expenses were shown to be payable and accounted as l
