{"id":1776,"date":"2024-03-29T21:20:46","date_gmt":"2024-03-29T15:50:46","guid":{"rendered":"https:\/\/lotusarise.com\/qna\/?p=1776"},"modified":"2024-04-03T07:11:20","modified_gmt":"2024-04-03T01:41:20","slug":"q-with-reference-to-the-prohibition-of-benami-property-transactions-act-1988-pbpt-act-consider-the-following-statements","status":"publish","type":"post","link":"https:\/\/lotusarise.com\/qna\/upsc\/q-with-reference-to-the-prohibition-of-benami-property-transactions-act-1988-pbpt-act-consider-the-following-statements","title":{"rendered":"Q.\u00a0With reference to the \u2018Prohibition of Benami Property Transactions Act, 1988 (PBPT Act), consider the following statements:"},"content":{"rendered":"\n
    \n
  1. A property transaction is not treated <\/strong>as a benami transaction if the owner of the property is not aware of the transaction.<\/strong><\/li>\n\n\n\n
  2. Properties held benami are liable for confiscation by the Government.<\/li>\n\n\n\n
  3. The Act provides for three authorities for investigations but does not <\/strong>provide for any appellate mechanism.<\/li>\n<\/ol>\n\n\n\n

    Which of the statements .given above is\/are correct?<\/p>\n\n\n\n

      \n
    • 1only<\/li>\n\n\n\n
    • 2 only<\/li>\n\n\n\n
    • 1 and 3 only<\/li>\n\n\n\n
    • 2 and 3 only<\/li>\n<\/ul>\n\n\n\n
      \n

      Answer:<\/strong> (b) 2 only<\/strong><\/p>\n<\/blockquote>\n\n\n\n

      Benami Property Transactions Act, 1988 (PBPT Act)<\/strong> :<\/h5>\n\n\n\n
        \n
      • Benami Transactions (Prohibition) Act, 1988 (name changed to Prohibition of Benami Property Transactions Act, 1988 by section 3 of the 2016 amendment) is an Act of the Parliament of India that prohibits certain types of financial transactions<\/strong>.<\/li>\n\n\n\n
      • The act defines a \u2018benami\u2019 transaction as any transaction in which property is transferred to one person for consideration paid by another person<\/strong>.<\/li>\n\n\n\n
      • Such transactions were a feature of the Indian economy, usually relating to the purchase of property (real estate), and were thought to contribute to the Indian black money problem.<\/li>\n\n\n\n
      • A property transaction is treated as a Benami transaction even if the owner of the property is unaware of the transaction because ignorance of the law is never an acceptable defence for breaking the law in India.<\/strong><\/li>\n\n\n\n
      • Benami\u2019s properties are subject to confiscation by the government. They are also subject to confiscation by the government without compensation.<\/strong><\/li>\n\n\n\n
      • The Adjudicating Authority and Appellate Tribunal have been established<\/strong> as an appeals mechanism.<\/li>\n\n\n\n
      • Persons involved in Benami transactions may face up to 7 years in prison and a fine.<\/strong><\/li>\n<\/ul>\n\n\n\n

        The Act establishes four authorities <\/strong>who will be able to conduct inquiries regarding benami transactions:<\/p>\n\n\n\n

        Name of Authority<\/th>Post of Authority<\/th>Responsibility<\/th><\/tr><\/thead>
        Initiating Officer<\/strong><\/td>Assistant Commissioner of Income-Tax (ACIT) or a Deputy Commissioner of Income-Tax (DCIT)<\/td>Notice and attachment of property<\/td><\/tr>
        Approving Authority<\/strong><\/td>Additional Commissioner of Income-Tax (AdlCIT) or a Joint Commissioner of Income-Tax(JCIT)<\/td>Notice to furnish evidence<\/td><\/tr>
        Administrator<\/strong><\/td>Income Tax Officer (ITO)<\/td>Possession and management of properties confiscated<\/td><\/tr>
        Adjudicating Authority<\/strong><\/td>Officers Drawn from ITD<\/td>Confiscation and vesting of property<\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"

        Which of the statements .given above is\/are correct? Answer: (b) 2 only Benami Property Transactions Act, 1988 (PBPT Act) : The Act establishes four authorities who will be able to conduct inquiries regarding benami transactions: Name of Authority Post of Authority Responsibility Initiating Officer Assistant Commissioner of Income-Tax (ACIT) or a Deputy Commissioner of Income-Tax (DCIT) Notice and attachment of property…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[1,3],"tags":[38],"years":[56],"class_list":["post-1776","post","type-post","status-publish","format-standard","hentry","category-upsc","category-prelims","tag-indian-economy","years-56"],"acf":[],"taxonomy_info":{"category":[{"value":1,"label":"UPSC"},{"value":3,"label":"Prelims"}],"post_tag":[{"value":38,"label":"Indian Economy"}],"years":[{"value":56,"label":"2017"}]},"featured_image_src_large":false,"author_info":{"display_name":"LotusArise","author_link":"https:\/\/lotusarise.com\/qna\/author\/team-lotusarise"},"comment_info":0,"category_info":[{"term_id":1,"name":"UPSC","slug":"upsc","term_group":0,"term_taxonomy_id":1,"taxonomy":"category","description":"","parent":0,"count":1269,"filter":"raw","cat_ID":1,"category_count":1269,"category_description":"","cat_name":"UPSC","category_nicename":"upsc","category_parent":0},{"term_id":3,"name":"Prelims","slug":"prelims","term_group":0,"term_taxonomy_id":3,"taxonomy":"category","description":"","parent":1,"count":1251,"filter":"raw","cat_ID":3,"category_count":1251,"category_description":"","cat_name":"Prelims","category_nicename":"prelims","category_parent":1}],"tag_info":[{"term_id":38,"name":"Indian Economy","slug":"indian-economy","term_group":0,"term_taxonomy_id":38,"taxonomy":"post_tag","description":"","parent":0,"count":225,"filter":"raw"}],"_links":{"self":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts\/1776","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/comments?post=1776"}],"version-history":[{"count":0,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts\/1776\/revisions"}],"wp:attachment":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/media?parent=1776"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/categories?post=1776"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/tags?post=1776"},{"taxonomy":"years","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/years?post=1776"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}