Q. With reference to Benami Transactions (Prohibition) Amendment Act, 2016, consider the following statements:
1.It establishes adjudicating authorities and Appellate Tribunal to deal with Benami transactions.
2.It provides immunity under the Benami Act to those who declare their benami properties under income declaration scheme.
3.The law applied retrospectively.
Which of the statements given above are correct?

[A] 1 and 2 only

[B] 1 and 3 only

[C] 2 and 3 only

[D] 1, 2 and 3

Answer: A
Notes:

Statement 1: The Benami Transactions (Prohibition) Amendment Act, 2016 was designed to curb black money. It amended the Benami Transaction (Prohibition) Act, 1988. The Benami Transactions (Prohibition) Amendment Act, 2016 establishes adjudicating authorities and Appellate Tribunal to deal with Benami transactions.

Statement 2: The law also provides immunity under the Benami Act to those who declare their benami properties under income declaration scheme.

Statement 3: The statement is incorrect. The Supreme Court recently declared as “unconstitutional and manifestly arbitrary” the amendments introduced to the Benami law in 2016, which apply retrospectively and can send a person to prison for three years even as it empowers the Centre to confiscate “any property” subject to a benami transaction. SC declared as unconstitutional Sections 3(2) and 5 introduced through the Benami Transactions (Prohibition) Amendment Act, 2016.

Source: https://www.thehindu.com/news/national/supreme-court-strikes-down-provision-of-1988-benami-law/article65801341.ece

Blog
Academy
Community