Smt. Maya Verma Vs DCIT (Allahabad High Court)
The Allahabad High Court heard appeals filed under Section 49 of the Prohibition of Benami Property Transactions Act, 1988, challenging orders passed by the Appellate Tribunal under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act and the Adjudicating Officer under Section 26(3) of the Benami Act. The case arose from a search and seizure operation in which a total sum of Rs. 1,23,63,000/- was recovered from the appellants’ residence in April and June 2017. The appellants explained that the cash originated from the sale of jewellery and silver coins obtained through a family settlement in 2008, and that these amounts were disclosed in their Income Tax Returns for Assessment Year 2017-18. The appellants also referenced prior disclosure in the 2009-10 ITR, noting the possession of gold and silver items under the settlement.
The Adjudicating Authority and the Appellate Tribunal rejected the appellants’ explanation, citing a “kachcha paper” recovered from Sunita Verma’s almirah, which detailed sums received from transporters. The authorities concluded that the transactions were benami and suspected that the appellants’ family members, holding official positions in the transport and commercial tax departments, had received illegal gratification. The non-filing of Wealth Tax Returns and non-disclosure of buyers of jewellery were also highlighted as raising suspicion.
