Supreme Court issues Notice on Condonation Application of Delayed SLP Filing by Income Tax Dept challenging Retrospective Effect of Benami Transaction Amendment [Read Judgement]

The Supreme Court issued notice on application of condonation of delay in filing Special leave petition ( SLP ) by Income Tax Department which arose out of impugned final judgment and order passed by the Telangana High Court. Before the High Court it was challenged on the retrospective effect of Benami Transaction (Prohibition) Amendment Act of 2016 for the transactions in the year of 2011.

M/s.Nexus Feeds Limited, the assesee which has been treated as the beneficial owner so that its funds out of unknown sources get parked in the name of the benamidar in the form of shares. Thus it has been held that the consideration has flown through beneficial owner for its immediate or future benefit, direct or indirect; thereby conclusively falling under Section 2(9) (A) of the Prohibition of Benami Property Transactions Act,1988.

The hearing was confined to retrospective applicability of the provisions of the Benami Transactions (Prohibition) Amendment Act, 2016 to the transactions in question. it was concluded that the contention of the petitioner that there can be no retrospectivity of the aforesaid Amendment Act of 2016 and hence the impugned order is ex facie bad in law being without jurisdiction.       

The three judge bench of  Chief Justice,  Justice J B Pardiwala and Justice Manoj Misra issued notice on the application for condonation of delay in filing the petition and on the Special Leave Petition.

To Read the full text of the Order CLICK HERE

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ASSISTANT COMMISSIONER OF INCOME TAX vs NEXUS FEEDS LTD , 2024 TAXSCAN (SC) 233