'A', an individual by a transaction, purchased a house in the name of his wife. Consideration of transaction was paid by 'A' out of his known sources. Government seized the house claiming it to be a benami property. Deci

According to Section 2(9) of the Prohibition of Benami Transactions Act, 1988 , a benami transaction does not include a transaction where an individual purchases a property in the name of his spouse or any child, and the consideration for such property has been provided out of the known sources of the individual. In this case, 'A' has purchased a house in the name of his wife, and the consideration was paid by 'A' out of his known sources. Thus, it is not a benami transaction. Therefore, the action of the Government claiming it to be a benami property and seizing it is not justified under the Prohibition of Benami Property Transactions Act, 1988.