Tribunal to try benami cases soon

Tribunal to try benami cases soon

News:

1. The government has approved the appointment of Adjudicating Authority and establishment of Appellate Tribunal for speedy disposal of cases related to benami transactions.

Important Facts:

2. The Adjudicating Authority and Appellate Tribunal has been created under Prohibition of Benami Property Transactions Act (PBPT), 1988.
3. Salient Features of Adjudicating Authority and Appellate Tribunal (AAAT):

• Appointment of an Adjudicating Authority, along with the three additional Benches and to establish the Appellate Tribunal under the PBPT Act.
• To provide the officers and employees to Adjudicating Authority by diverting the existing posts at the same level/rank from the Income Tax Deptt./Central Board of Direct Taxes (CBDT).
• The AAAT will be based in Delhi and benches of Adjudicating Authority may sit in Kolkata, Mumbai and Chennai, after making consultation with the Chairperson of the proposed Adjudicating Authority.

4. Background:

• The government had notified sessions courts in 34 States and Union Territories, which will act as special courts for trial of offences under the benami transaction law.

5. Significance:

• Effective and better administration of cases referred to the Adjudicating Authority.
• Speedy disposal of appeals filed against the order of the Adjudicating Authority before the Appellate Tribunal.
• It would provide first stage review of administrative action under the PBPT Act.

6. About Benami transaction:

• It refers to transactions made in a fictitious name, or the owner is not aware of the ownership of the property, or the person paying for the property is not traceable.
• The rules and all the provisions of the Benami Transactions (Prohibition) Act came into force on November 1, 2016.