Benami transaction

Jasvinder (Querist) 12 October 2023 This query is : Resolved
A partnershipship firm was made between brothers and in deed it was written it will do trading of building material, sale and purchase of land and land development. Now a land was purchased for partnership firm and fund was given from firm and it stand as a stock of firm in audit report but it was purchased in name of one partner.
Is it a benami transaction.

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kavksatyanarayana (Expert) 13 October 2023
It will not come under Benami but the deed has to be verified. I think on behalf of the Firm Sri......... is the buyer shall be written but if it is wrongly noted, get a rectification to it.

T. Kalaiselvan, Advocate (Expert) 19 October 2023
If the property was purchased on individual's name, then it will not be considered as the property of the firm.
If it is shown as capital asset of the firm in the audit report then it is a false report.
However how did the partnership fund for the purchase of property in the name of an individual partner instead of buying it on the name of the firm?

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