APPELLATE TRIBUNAL UNDER SAFEMA AT NEW DELHI FPA-PBPT-1507/MUM/2021 DCIT (BPU-2), Mumbai … Appellant Versus

1. M/s Brook Multimedia Private Limited, (Benamidar)

2. Sh. Pawan Gupta (Beneficial Owner) … Respondents Advocates/Authorized Representatives who Argued For the Appellant: Mr. Manmeet S. Arora, SPP For the Respondent: S/Sh. Ashwani Taneja & Ashish Tandon, Ms. Gunjan Chauhan, Advocates.

CORAM SHRI GOPAL CHANDRA MISHRA : MEMBER SHRI RAJESH MALHOTRA : MEMBER

FINAL ORDER

01.04.2026 Dictated By: Rajesh Malhotra Present Appeal u/s 46(1) of Prohibition of Benami Property Transactions Act, 1998 (PBPTA), is filed by the Initiating Officer, DCIT, BPU-2, Mumbai against the order dated 14.10.2021 passed by the Adjudicating Authority, whereby reference made u/s 24(5) of PBPTA, 1998 (as amended) qua the attached property was revoked and thereby the Provisional Attachment Order (PAO) dated 18.03.2020 was set-aside.

2. As per the facts of the case, M/s Brook Multimedia Pvt. Ltd., the Benamidar was incorporated on 30.11.2020. As per the returns of income, the benamidar has shown its nature of business as ‘0204 – Trading – Others’. The registered address of this company is Office No. 2, 2nd Floor, Daulat Bhavan, 407, Kalbadevi Road, Mumbai – 400002.

On perusal of the returns of income and the ITR details available with the Income Tax Department, it was observed that the benamidar M/s Brook Multimedia Pvt. Ltd. (PAN: AAECB3481F) is holding the following benami property in its name:

S. Description of property Date of Consideration Purchaser No. Registration and Doc. No.

1. B 1101, Asmi Realtors, - 1,82,82,064 Mahindra Eminent, SV Road, Goregaon (West), Mumbai 400104.

The Directors of the benamidar company at various points were as follow:

Sr. No. Director Name Appointment Date Cessation Date

1. Dinesh Kumar Sharma 16.12.2010 20.01.2011 2. Pradeep Prajapati 16.12.2010 20.01.2011 3. Aruna Chudaman Umredkar 30.11.2010 20.01.2011 4. Harish Sharma 30.11.2010 16.12.2010 5. Gangadhar Sail 20.01.2011 05.04.2018 6. Pankaj Gupta 20.01.2011 30.09.2016

7. Pramila Gupta 08.06.2016 Till date 8. Payal Gupta 05.04.2018 Till date The current shareholder of the benamidar as per the details available on Return of income for the AY 2019-20 are as under:

Sr. No. Name Number of shares held % of holding

1. Pawan Gupta 25500 27.72 2. Pramila Pawan Gupta 36000 39.13 3. Payal Pawan Gupta 30500 33.15 Total 92000 100.00 The analysis of the returns of income of the benamidar from AY

2011-12 to AY 2019-20 reveals that the benamidar is not involved in any actual business activities. The important details as per the profit and loss account of the benamidar are as follow:

AY Turnover Opening Closing Purchases Profit stock Stock

2011-12 0 0 0 0 -3036 2012-13 0 0 0 0 -37027 2013-14 0 0 0 0 -287 2014-15 0 0 0 0 -525 2015-16 0 0 0 0 -825 2016-17 0 0 0 0 -11600 2017-18 0 0 0 0 -13318 2018-19 0 0 0 0 -168507 2019-20 0 0 0 0 130197 The benamidar has no income generating activity and the benamidar thus possesses all principal characteristics associated with a shell company. In absence of any revenue-generating activities of the benamidar, the source of funds used to purchase the benami property were analyzed.

As seen from the table below, the source of funds available with the benamidar comes almost entirely from securities premium:

It was observed from the records filed by the benamidar with the Ministry of Corporate Affairs (MCA), Government of India, that it had received Rs. 1,96,80,000/-, as premium on shares from various companies upon allotment of shares in FY 2010-11. The nominal value of the equity share of the benamidar was Rs. 10 per share. However, the benamidar had allotted equity shares to the shareholders at huge premium of Rs. 240/- per share, which was multiple times its nominal value and received Rs. 1,96,80,000/- as premium with each equity share of Rs. 10 allotted at Rs. 240. The benamidar was not conducting any actual business and as such, the benamidar did not possess any attrac