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2016 (8) TMI 1171 - AT - Benami PropertyAddition on FDRs - Held that:- We see no reason to agree with this course of action in view of specific provision in the Benami Transactions (Prohibition) Act 1988 specifically envisaging prohibition of the right to recover or defend any benami property as the finding section 2(c) therein to be a property of any client; moveable or immovable, tangible or intangible including any right or interest in such property. Both the lower authorities ignored operation of this specific legislation. The Assessing Officer admittedly treats the actual investors to be assessee’s benamidars. He also relies upon in a catena of case law. We find that none of them deals with the above stated Benami Act hereinabove. We accordingly hold that the Revenue’s arguments supporting the impugned addition on the basis of the lower appellate authorities finding, assessee’s search statement and the fact that some of the impugned demand stands recovered from the FDRs in question does not form reason to deviate from the specific legislation hereinabove. We are further of the opinion that these FDRs in question have to be treated in the names of the specific investors therein who have already supported the impugned stand instead of holding the assessee as the real owner thereof merely because of the fact that the same have been found/seized from his premises in the course of search. We delete the impugned addition forming subject matter substantive ground.
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