Income Disclosure Does Not Prevent Benami Proceedings: Kerala HC

Vittal Sait Popat Vs ACIT (BPU) (Kerala High Court) Summary : The Kerala High Court examined whether the issuance of show-cause notices under Section 24(1) of the Prohibition of Benami Property Transactions Act, 1988 (PBPT Act) against the petitioners, who had already disclosed income and paid tax under the Income Tax Act, 1961, was valid. The petitioners challenged the notices (Exts. P10 and P11) on the grounds that there was no adequate material to justify proceedings under the PBPT Act and that their disclosure of income and tax payment should preclude further inquiry. The case arose when t...