Q95.
With reference to the 'Prohibition of Benami Property Transaction Act, 1988 (PBPT Act)', consider the following statements: 1. A property transaction is not treated as a benami transaction if the owner of the property is not aware of the transaction. 2. Properties held benami are liable for confiscation by the Government. 3. The Act provides for three authorities for investigations but does not provide for any appellate mechanism. Which of the statements given above is/are correct?
Answer
B
Explanation
The definition of a benami transaction has been widened to include a transaction made in a fictitious name; where the owner is not aware or denies knowledge of the ownership of the property. Hence statement 1 is not correct — even if the owner is unaware, it can still be treated as benami. Properties held benami are liable for confiscation by the Government without payment of compensation. Statement 2 is correct. An appellate mechanism has been provided under the PBPT Act in the form of Adjudicating Authority and Appellate Tribunal. Statement 3 is not correct.