{"id":147167,"date":"2024-10-04T03:01:08","date_gmt":"2024-10-04T03:01:08","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/10\/04\/appellate-tribunal-rules-employees-can-hold-cash-for-employers-without-it-being-benami-transaction\/"},"modified":"2024-10-04T03:01:08","modified_gmt":"2024-10-04T03:01:08","slug":"appellate-tribunal-rules-employees-can-hold-cash-for-employers-without-it-being-benami-transaction","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/10\/04\/appellate-tribunal-rules-employees-can-hold-cash-for-employers-without-it-being-benami-transaction\/","title":{"rendered":"Appellate Tribunal rules employees can hold cash for employers without it being &#8216;benami transaction&#8217;"},"content":{"rendered":"<div style=\"text-align:center\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"302\" src=\"https:\/\/i3.wp.com\/img.etimg.com\/photo\/msid-113903284,imgsize-12960.cms?resize=500,302&amp;ssl=1\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"Appellate Tribunal rules employees can hold cash for employers without it being &#8216;benami transaction&#8217;\" title=\"Appellate Tribunal rules employees can hold cash for employers without it being &#8216;benami transaction&#8217;\" \/><\/div>\n<div data-brcount=\"19\">The <a ref=\"dofollow\" data-ga-onclick=\"Inarticle articleshow link click#News#href\" href=\"https:\/\/economictimes.indiatimes.com\/topic\/appellate-tribunal\" target=\"_blank\" rel=\"noopener\">appellate tribunal<\/a> overseeing benami transactions has ruled that employees can hold cash on behalf of their employers without it being categorised as a <a ref=\"dofollow\" data-ga-onclick=\"Inarticle articleshow link click#News#href\" href=\"https:\/\/economictimes.indiatimes.com\/topic\/benami-transaction\" target=\"_blank\" rel=\"noopener\">benami transaction<\/a>.<\/p>\n<p><style><![CDATA[\n    \t    #sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;}\n    \t    .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px}\n    \t    #sr_widget.onDemand .sr_desc{margin:0 auto 0;}\n    \t    #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;}\n    \t    #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important}\n    \t    #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%}\n    \t    #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;}\n    \t]]><\/style>\n<p><!--\/article_liveblog.cms?msid=105115637&pos=toppotime:1-->&#8220;Fiduciary relationships involve trust and confidence, often between employer and employee, where the employee is acting in the interest of the employer. <\/p>\n<p>In several business setups, employees do hold cash in a fiduciary capacity,&#8221; said Ashwani Taneja, an advocate representing the employees.<\/p>\n<p>According to the tribunal, cash held by employees in a fiduciary role is exempt from the definition of a &#8216;benami transaction&#8217; under Section 2(9)(A)(ii) of the <a ref=\"dofollow\" data-ga-onclick=\"Inarticle articleshow link click#News#href\" href=\"https:\/\/economictimes.indiatimes.com\/topic\/prohibition-of-benami-property-transactions-act\" target=\"_blank\" rel=\"noopener\">Prohibition of Benami Property Transactions Act<\/a>, 1988. <\/p>\n<p>However, Taneja stressed that it&#8217;s crucial for the <a ref=\"dofollow\" data-ga-onclick=\"Inarticle articleshow link click#News#href\" href=\"https:\/\/economictimes.indiatimes.com\/topic\/trust-relationship\" target=\"_blank\" rel=\"noopener\">trust relationship<\/a> to be clearly established, with no conflicts of interest or personal gain involved. While the tribunal&#8217;s ruling is not legally binding, it could influence future cases.<\/p>\n<p><!--\/include_growfast.cms?pagename=article&skipcss=1potime:1--><br \/>In the specific case involving <a ref=\"dofollow\" data-ga-onclick=\"Inarticle articleshow link click#News#href\" href=\"https:\/\/economictimes.indiatimes.com\/topic\/jiten-pujari\" target=\"_blank\" rel=\"noopener\">Jiten Pujari<\/a> and others, nearly Rs 10 crore was discovered in multiple bank lockers belonging to employees during a search conducted under the <a ref=\"dofollow\" data-ga-onclick=\"Inarticle articleshow link click#News#href\" href=\"https:\/\/economictimes.indiatimes.com\/topic\/income-tax-act\" target=\"_blank\" rel=\"noopener\">Income-tax Act<\/a>. The employees did not claim the cash, stating it belonged to their employers, who also did not deny this ownership. Moreover, the amount was included in the employers&#8217; income and taxed accordingly.The tribunal concluded that the employees were merely holding the cash for safekeeping, which aligns with their fiduciary duties, rather than participating in a benami transaction. <\/p>\n<p>If the transaction had been classified as benami, the assets would be confiscated by the government, and the individuals involved could face up to seven years in prison along with heavy fines.<\/p>\n<p><em><strong>(With inputs from TOI)<\/strong><\/em><\/p>\n<style><![CDATA[\n    \t    #sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;}\n    \t    .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px}\n    \t    #sr_widget.onDemand .sr_desc{margin:0 auto 0;}\n    \t    #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;}\n    \t    #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important}\n    \t    #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%}\n    \t    #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;}\n    \t]]><\/style>\n<p><!--\/article_liveblog.cms?msid=105115637&pos=botpotime:1--><\/p>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/economictimes.indiatimes.com\/news\/india\/appellate-tribunal-rules-employees-can-hold-cash-for-employers-without-it-being-benami-transaction\/articleshow\/113903284.cms\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The appellate tribunal overseeing benami transactions has ruled that employees can hold cash on behalf of their employers without it being categorised as a benami transaction. &#8220;Fiduciary relationships involve trust and confidence, often between employer and employee, where the employee is acting in the interest of the employer. In several business setups, employees do hold [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":147168,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/img.etimg.com\/photo\/msid-113903284,imgsize-12960.cms","fifu_image_alt":"","footnotes":""},"categories":[602],"tags":[42210,116782,116790,116781,979,116787,5395,116784,116788,99822,116783,2948,9498,116789,116785,899,37851,13969,116786],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/147167"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=147167"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/147167\/revisions"}],"predecessor-version":[{"id":147169,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/147167\/revisions\/147169"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/147168"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=147167"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=147167"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=147167"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}