Vijay Pal Dalmia, Advocate
Supreme Court of India & Delhi High Court
Email Id:
Mobile No.: +91 9810081079
Twitter: @vpdalmia

The Hon'ble High Court of Allahabad in the case of Prakash Narain vs. CIT/CWT(1 [1981] 6 Taxman 159 (All)] has held that for determining a particular transaction as benami,  following criteria should be fulfilled:-

  1. The burden of proof regarding benami is upon the one who alleges benami,
  2. To prove benami, the most important point is to examine the source of consideration and along with that there are certain other criteria which should be taken into account.
  3. The mere allegation of an explanation would not entitle the department to claim that the consideration for the purchase of the property in the name of a non-assessee was provided by the assesse
  4. Apart from the relationship between the parties, there must be some material or evidence to support the case of benami of the transaction.

© 2018, Vaish Associates Advocates,
All rights reserved
Advocates, 1st & 11th Floors, Mohan Dev Building 13, Tolstoy Marg New Delhi-110001 (India).

The content of this article is intended to provide a general guide to the subject matter. Specialist professional advice should be sought about your specific circumstances. The views expressed in this article are solely of the authors of this article.