3  may :m the gift-tax bill, 1990 arrangement of clau ses chapter i preliminary chapter, itto such charge3- charge of gift-tax 4- gifts to include certain transfers5 exemption in respect of certain piftso- value- of gifts how determined chapter iii gift-tax authorities8- control of gift-tax authorities9 instructions to subordinate authorities1l power of chief commissioner or commissioner and of deputycommissioner to makeenquiries chapter iv12 return of gifts13 return after due date and amendment of return14- return by whom to be signed15 self-assessment16 assessment clauses| 17                                                                | gift escaping assessment   ||--------------------------------------------------------------------|-----------------------------|| 18- time limit for completion of assessment and reassessment      |                             || 19 interest for defaults in furnishing return of gifts           |                             || 20- penalty for failure to furnish returns, to comply with notices |                             || and concealment of gifts, etc                                     |                             || - ■ •• - penalty for failure to                                    | answer                      || furnish information, allow inspection, etc                        |                             | chapter v|                                                                 ||------------------------------------------------------------------|| iability                                                         ||                                                                  || to                                                               ||                                                                  || assessment                                                       ||                                                                  || in                                                               ||                                                                  || special                                                          ||                                                                  || cases                                                            || 22- la x  of deceased person payable by legal representative    || 23 assessment of persons leaving india                         || 24 assessment of a minor, lunatic or idiot                     || 25 liability after partition of a hindu undivided family and in || die case of discontinued firm or association of persons         || 26- company in liquidation                                      | chapter vi a ppeals, revisions and references27 appeal to the deputy commissioner (appeals), commissioner (appeals), from orders of assessing officers28 appeal to the appellate tribunal 29 powers of commissioner to revise orders of subordinate authorities30 appeal to the appellate tribunal from orders of penalty or enhancement by chief commissioner or commissioner31 reference to high court 32 hearing by high court 33 appeal to supreme court- 34- tax to be paid notwithstanding reference, etc35 definition of high courtp ayment and recovery of gift-tax36 gift-tax by whom payable37 gift-tax to be charged on property gifted38- notice of demand ; ■ clauses39 recovery of tax and penalties 40 mode of recovery chapter viii ' r efunds41 refunds chapter ix miscellaneous'42: rectification of mistakes43- prosecutions44 offences by companies45 offences by hindu undivided families,46 section 360 of the code of criminal procedure, 1973 and the probation of offenders act, 1958 not to apply47- presumption as to culpable mental state48 proof of entries in records or documents49 power regarding discovery, production of evidence, etc50 power to call for information51 effect of transfer of authorities on pending proceedings 52- computation of period of limitation 53 service of notice 54 publication of information respecting assessees 55' disclosure of information respecting assessees56 return of gifts, etc, not to be invalid on certain grounds57 bar of suits in civil court58 appearance before gift-tax authorities by authorised represen­tatives- ■59 appearance by registered valuer in certain matters 65- agreement for avoidance or relief of double taxation, with respect to gift-tax61 rounding off of taxable gifts 62 rounding off of tax, etc63 power to make rules-64 repeal and savings65 power to remove difficultiesthe first schedulethe- second schedule- the gift-tax bill, 1990 a billto provide for the levy of gift-taxbf it enacted by parliament in the forty-first year of the republic of india as follows: — chapter i preliminary| 1 (1) this act may be called the gift-tax act, 1990             | short                      ||-------------------------------------------------------------------|----------------------------|| title,                                                            |                            || (2)                                                               |                            || it extends to the whole of india except the state of jammu and    | extent                     || kashmir                                                          | and co                     || mence-                                                            |                            || (3) it shall be deemed to have come into force on the 20th day of | ment                      || march, 1990                                                      |                            || 2 in this act, unless the context otherwise requires,—           | deftni                    || (i)                                                               | ''amalgamation" shall have || the                                                               |                            || meaning assigned to it in                                         | tl0t)s-                    || clause (ib) of section 2                                          |                            || of                                                                |                            || the                                                               |                            || income-tax act;                                                   |                            || (it) "appellate tribunal" means the appellate tribunal con­        |                            || stituted under section 252 of the tncome-tax act;                 |                            |(iii) "assessee'' means a person by whom gift-tax or any other sum of money is payable under this act, and includes—(a) every person in respect of whom any proceeding under this act has been taken for the determination of gift-tax payable by him or by any other person or the amount of refund due to 5 him or such other person;(b) every person who is deemed to be an assessee under this act;(c) every person who is deemed to be an assessee in default under this act; jq(w) "assessing officer" means the assistant commissioner or the income-tax officer who is vested with the relevant jurisdiction by virtue of directions or orders issued under sub-section (1) or sub-section (2) of section 120 or any other provision of the income-tax act which apply for the purposes of gift-tax under 15 section 7 of this act and also the deputy commissioner who is directed under clause (b) of sub-section (4) of the said section 120to exercise or perform all or any of the powers and functions conferred on or assigned to the assessing officer under that act;(«) "assessment" includes reassessment; 20(vi) "assessment year" means the period of twelve months commencing on the 1st day of april every year;(vii) "board" means the central board of direct taxes consti­tuted under the central boards of revenue act, 1963;(viii) "charitable purpose" includes relief of the poor, education, 25 medical relief, and the advancement of any other object of general public utility;(ix) the expressions "company", "indian company'' and "company in which the public are substantially interested" shall have the meanings respectively assigned to them under section 2 3q of the income-tax act;(x) "convertible foreign exchange" means foreign exchange which is for the time being treated by the reserve bank of india as convertible foreign exchange for the purposes of the foreign ex­change regulation act, 1973 and any rules made thereunder; 35(xi) "donee" means any person who acquires any property under a gift, and, where a gift is made to a trustee for the benefit of another person, includes both the trustee and the beneficiary;(tu) "donor" means any person who makes a gift;(xiii) "executor" includes an administrator or any other pel-son administering the estate of a deceased person;(xiu) "foreign exchange regulation act" means the foreign exchange regulation act, 1973;(xv) the expressions "firm", "partner" and "partnership" shall have the meanings respectively assigned to them under section 2 of the income-tax act;(xvt) "gift" means the transfer by one person to another of any existing movable or immovable property made voluntarily and without consideration in money or money's worth, and includes the transfer or conversion of any property referred to in section 4, deemed to be a gift under that section but does not include receipts which are income within the meaning of the income-tax act;10 explanation—a transfer of any building or part thereof referred to in clause (in)  clause {iha) or clause (mb) of section 27 of the incometax act by the person who is deemed under the said clause to be the owner thereof made voluntarily and without consideration in money or money s worth, shall be deemed to be a gift made by such person;15 (xvii) "income-tax act" means the income-tax act 1961:(xt'iii) legal representative'" has the meaning assigned to it in clause (11) of section 2 of the code of civil procedure 1938;(xix) "non-resident" shall have the meaning assigned to it in the income-tax act;(xx> non-resident indian" shall have the meaning assigned toyj n clause (e) of section 115c of the income-tax act;(x,xi) person includes a hindu undivided family or a company or an association or a body of individual or persons, whether in­corporated or not;(xxii) "person resident outside india" shall have the same25 meaning assigned to it in clause (q) of section 2 of the foreign exchange regulation act, 1973;(xxii;) political party" shall mean an association or body of individual citizens of india registered with the election commis­sion under any law for the time being in force;30 (xxiv) "prescribed" means prescribed by rules made under this act;(xxv) 'previous year' in relation to any assessment year means any period, not exceeding twelve months, ending on the 31st day of march immediately preceding the assessment year:| 35                                                                     ||------------------------------------------------------------------------|| ing on the 1st day of april, 1991, shall be the period commencing on   || the 20th day of march, 1990 and ending on the 31st day of march, 1991; |(xxvi) "principal officer", used with reference to a company or association of persons, means—40 (a> the secretary and treasurer, manager, managing agentmanaging director or agent of the company or association; or(b) any person connected with the management of the affairs of the company or association upon whom the assessing officer has served a notice of his intention of treating him as45 principal officer thereof;(xxvii) "property" includes any interest in property, movable or immovable;(xocviii) "registered valuer'' shall have the meaning assigned to it in clause (oaa) of section 2 of the wealth-tax act;(xxix) "regular assessment" means the assessment made under 5 sub-sections (5) and (7) of section 16;(xxx) "relative" shall have the meaning assigned to it in clause (41) of section 2 of the income-tax act;(xxxi) "resident",—(a) in the case of an individual, means, if during that year 10 he is a resident within the meaning of section 6 of the incometax act, subject to the modification that reference in that section to india shall be construed as references to the territories to which this act extends;(b) in the case of a hindu undivided family, firm or other '5 association of persons, means, if during that year, the control and management of its affairs was situated wholly within the territories to which this act extends;(c) in the case of a company, means, if during thei previous year,— 2q(i) it is a company formed and registered under the companies act, 1956, or is an existing company within the 1 of meaning of that act; or(ii) the control and management of that company was situated wholly in the territories to which this act extends; 25(d) in any other case, shall have the meaning assigned to it in section 6 of the income-tax act;(xxxli) "tax" means gift-tax chargeable under the provisions of this act;(xxxiii) "taxable gifts" means gifts chargeable to gift-tax under 30 this act;(xxxiv) "transfer of property" means any disposition, convey­ance, assignment, settlement, delivery, payment or other alienation of property and, without limiting the generality of the foregoing, includes— , 55(a) the creation of a trust in property; (b) the grant or creation of any lease, mortgage, charge, easement, licence, power, partnership or interest in property;(c) the exercise of a power of appointment (whether general, special or subject to any restrictions as to the persons 40 in whose favour the appointment may be made) of property vested in any person, not the owner of the property, to deter­ mine its disposition in favour of any person other than the donee of the power; and|                                                                       |                                                                   | (d)             | any transaction entered into by any person with intent    ||-----------------------------------------------------------------------|-------------------------------------------------------------------|-----------------|-----------------------------------------------------------|| thereby to diminish                                                   | directly or indirectly                                            | the value of    | his                                                       || own property and to increase the                                      | value of the property of                                          |                 |                                                           || any other person;                                                     |                                                                   |                 |                                                           || 5                                                                     | (xxiru) "valuation officer" shall have the meaning assigned to it |                 |                                                           || in clause (r) of section 2 of the wealth-tax act;                     |                                                                   |                 |                                                           || h®5'-                                                                 |                                                                   |                 |                                                           || (xxxvi)                                                               |                                                                   |                 |                                                           || "wealth-tax act" means the wealth-tax act, 1957;                      |                                                                   |                 |                                                           || (xxxvii)                                                              |                                                                   |                 |                                                           || the expressions                                                       | "chief                                                            | commissioner" , | "director                                                 || general", "commissioner", "commissioner                               | (appeals) ", "director' ,                                         |                 |                                                           || 10                                                                    | "deputy director", "deputy commissioner" , "deputy commissioner   |                 |                                                           || (appeals)" , "assistant director", "assistant commissioner", "income- |                                                                   |                 |                                                           || tax officer", "tax recovery officer" and "inspector of income         | tax"                                                              |                 |                                                           || shall have the meanings respectively assigned to them under section   |                                                                   |                 |                                                           || 3 of the income-tax act,                                              |                                                                   |                 |                                                           || 15                                                                    |                                                                   |                 |                                                           || chapter ii                                                            |                                                                   |                 |                                                           || c                                                                     |                                                                   |                 |                                                           || harge                                                                 |                                                                   |                 |                                                           ||                                                                       |                                                                   |                 |                                                           || of                                                                    |                                                                   |                 |                                                           ||                                                                       |                                                                   |                 |                                                           || gift                                                                  |                                                                   |                 |                                                           || -                                                                     |                                                                   |                 |                                                           || tax                                                                   |                                                                   |                 |                                                           ||                                                                       |                                                                   |                 |                                                           || and                                                                   |                                                                   |                 |                                                           ||                                                                       |                                                                   |                 |                                                           || gifts                                                                 |                                                                   |                 |                                                           ||                                                                       |                                                                   |                 |                                                           || subject                                                               |                                                                   |                 |                                                           ||                                                                       |                                                                   |                 |                                                           || to                                                                    |                                                                   |                 |                                                           ||                                                                       |                                                                   |                 |                                                           || such                                                                  |                                                                   |                 |                                                           ||                                                                       |                                                                   |                 |                                                           || charge                                                                |                                                                   |                 |                                                           |3 subject to the other provisions contained in this act, there shall be charged for every assessment year commencing on and from the 1st day of april, 1991, gift-tax in respect of the gifts, if any, received by a person 20 during the previous year, at the rate or rates specified in schedule i4, (1) for the purposes of this act,—(a) where property is transferred otherwise than for adequate consideration, the amount by which the market value of the property at the date of the transfer exceeds the value of the consideration shall be deemed to he a gift received by a transferee;2530(b) where property is transferred for a consideration which, having regard to the circumstances of the case, has not passed or is not intended to pass either in full or in part from the transferee to the transferor, the amount, of the consideration which lias not passed or is not intended to pass shall be deemed to be a gift received by the transferee;35(c) where there is a release, discharge, surrender, forfeiture or abandonment of any debt, contract or other actionable claim or of any interest in property by any person, the value of the release, discharge, surrender, forfeiture or abandonment to the extent to which it has not been found, to the satisfaction of the assessing officer to have been bonafide, shall be deemed to be s gift received by the person in whose favour such release, discharge, surrender, forfeiture or abandonment, is made;40(d) where a person absolutely entitled to property causes or has caused the same to be vested in whatever manner in himself and any other person jointly without adequate consideration and such other person makes an appropriation from or out of the said property, the amount of the appropriation used for the benefit ofcharge of gift-taxgifts to include certain transfersthe person making the appropriation or for the benefit of any other person shall be deemed to be a gift received in his favour by the person who causes or has caused the property to be so vested;(e) where a person who has an interest in property as a tenant for a term or for lift or a remainderman surrenders or relinquishes 5 his interest in the property or otherwise allows his interest to be terminated without consideration or for a consideration which is not adequate, the value of the interest so surrendered, relinquished or allowed to be terminated or, as the case may be, the amount by which such value exceeds the consideration 10 received, shall be deemed to be a gift received by the person in whose favour such surrender, relinquishment or termination is made(2) where in the case of an individual being a member of a hindu undivided family, any property having been the separate property of the 15 individual has been converted by the individual into property belong­ing to the family through the act of impressing such separate property with the character of property belonging to the family or throwing it into the common stock of the family (such property being hereafter in this sub-section referred to as the converted property), then, notwith- 20 standing anything contained in any other provision of this act 01 any other law for the time being in force, for the purpose of computation of the taxable gifts received by the individual, the individual shall be deemed to have made a gift of so much of the converted property as the members of the hindu undivided family other than such individual 25 would be entitled to, if a partition of the converted property had taken place immediately after such conversion5- (1) gift-tax shall not be charged under this act in respect of gifts received by any person—(i) of immovable property situate outside the territories to 30 which this act extends;(ii) of movable property situate outside the territories to which this act extends, unless the person' receiving the gift—(a) being an individual, is a citizen of india and is resident in the said territories; or 35(b) not being an individual, is resident in the said territories, during the previous year in which the gift isreceived;(iii) from a person resident outside india, out of the moneys standing to his credit in a non-resident (external) account in any 40 hank in india in accordance with the provisions of the foreign exchange regulation act and any rules made thereunder;(iv) in convertible foreign exchange remitted from a countryoutside india in accordance with the provisions of the foreign exchange regulation act and any rules made thereunder; 45(w) from a non-resident indian, being h:s relative, of pronertv in the form of any foreign exchange asset as defined in clause (b> of section 115g of the income-tax act;(pi) from a non-resident indian, being his relative of property in the form of the bonds specified under sub-clause (iid) of clause (15) of section 10 of the income-tax act:provided that the exemption conferred by this clause shall be 5 available only if the gift of such bonds is received after a period of three years from the date of their purchase:provided further that where the donor, who is a non-resident indian in any previous year in which the bonds are acquired, becomes a resident in india in any subsequent year, the pro- i jq visions of this clause shall apply in respect of the gifts of pro­perty referred to in this clause in such subsequent year or any year thereafter;(vii) being any local authority or any authority referred to in clause (20a) of section 10 of the income-tax act;[ j (win) being any institution or fund established or deemed to be established for a charitable purpose to which the provisions o; section 80g of the income-tax act, apply;,(ix) (a) being such temple, mosque, gurdwara, churcli or other place as has been notified by the central government for the pur- 20 poses of clause (b) of sub-section (2) of section 80g of the incometax act; or(b) by way of settlement on trust, of property, the income from which, according to the deed of settlement, is to be used ex­clusively in connection with the temple, mosque, gurdwara, church 25 or other place specified therein and notified as aforesaid;(x) on the occasion of the marriage of such person subject to a maximum of rupees one lakh in value;(xi) under a will; (xii) being an employee or the dependent of a diseased employee 30 from a employer by way of bonus, gratuity or pension, to the extent to which the payment of such bonus, gratuity or pension is proved to the satisfaction of the assessing officer as being reasonable having regard to the circumstances of the case and has received solely in recognition of the services rendered by the employee;(xiii) in the nature of any benefit, directly or indirectly, arising out of any expenditure incurred by a relative, on the maintenance or education or medical treatment of such person:provided that the donee is a dependent on a donor and the expenditure is actually incurred for the aforesaid purposes,(xiv) from any person, for the purposes of medical treatment, to 40 the extent to which such amount is actually spent on the medical treatm ent within the previous year or within such period as may be extended by the commissioner and the amount not so utilised for the aforesaid purpose is deposited in a public sector bank asi defined in clause (s3d) of section 10 of the income-tax act:provided that the donee is not a dependent relative of the donor;, be'-ns an indian company from any other company in ascheme of amalgamation; 5(xvi) being a political party; (xvii) being a candidate, in connection with any election to any legislative, municipal or other public authority m india, to the extent o which the amount so received is not in excess of the limits, if any,xed under any law for the time being in force relating to such' 10 elections or to the extent such amount is actually utilised in connec­tion with the election, whichever is lower;(xviii) any gift received in the form of national saving certifif  x1 x?ue) 3nd nationai having certificates (vii issue) issued under the government savings certificate act, 1959; 15rj rxry gift z  pr°perty received in the form °f special bearer nds, 1991 issued by the central governmentx f x x  t0 thf  provisions of sub-section (2), the value of anyof this^act be v v x  ' tran3f+x reu by way °f ^ sha11' for ^value of gifts how deter­minedand shafl h e  h , "  ° "  t h e  d a te  « n  w h ic h  g i f t  was recx ed 20and shall be determined in the manner laid down in schedule ii(2) where a person receives a gift which is not revocable for avalue f ^ ? 1ue °f ths pr°perty received shall be the capitaliseda ue of the income from such poverty during the period for which the gift is not revocable 25(3) the jurisdiction of a gift-tax authority under this act shall be the same as he has under the income-tax act by virtue of orders or directions issued under section 120 of that act (including orders or , directions assigning concurrent jurisdiction) or under any other provi- 35 sion of that act(4) the gift-tax authority having jurisdiction in relation to a person who has no income assessable to income-tax under the incometf ,  lact shal1 be the glft-tax authority having jurisdiction in respect of the area in which that person resides 4046 of8 section 118 of the income-tax act and any notification issued thereunder shall apply in 'relation to the control of gift-tax authorities aa they apply dn relation, to the control of the corresponding income-tax authorities, except to the extent to which the board may, by notification5 in the official gazette, otherwise direct in respect of any gift-tax autho­rity9 (1) the board may, from time to time, issue such orders, instruc­tions and directions to other gift-tax authorities as it may deem fit for the proper administration of this act and such authorities and all other10 persons employed in the execution of this act shall observe and follow such orders, instructions an^ directions of the board(2) notwithstanding anything contained in sub-section (1), the board shall not issue any order, instruction or direction—(a) so as to require any gift-tax authority to make a particular 15 assessment or to dispose of a particular case in a particular manner;dr(b) so as to interfere with the discretion of the deputy commis­sioner (appeals) or commissioner (appeals) in the exercise of his ap­pellate functions(3) without prejudice to the generality of the foregoing power,—<(a) the board may, if it considers it necessary or expedient so to do, for the purpose of proper and efficient management of the work of assessment and collection of revenue, issue, from time to time (whether by way of relaxation of anv of the provisions of sections25 12, 13, 16, 17, 19, 20 and 42 or otherwise), general or special ordersin respect of any class of cases, setting forth directions or instruc­tions (pot being prejudicial to assessees) as to the guidelines, prin­ciple or procedures to be followed by other gift-tax authorities in the work relating to assessment or collection of revenue or the initiation 30 of proceedings for the imposition of penalties and any such order may, if the board is of opinion that it is necessary in the public in­terest so to do be published and circulated in the prescribed manner for general information;(b) the board may, if it considers it desirable or expedient so to 35 do for avoiding genuine hardship in any case or class of cases, bygeneral or special order, authorise any gift-tax authority, not being a deputy commissioner (appeals) or commissioner (appeals) to admit an application or claim for any exemption or refund or any other relief under this act after the expiry of the period specified 40 by or under this act for making such application or claim and deal with the same on merits in accordance with law10 (i) the provisions of sections 124 and 127 of the income-tax act shall, so far as may be, apply for the purposes of this act as they apply for the purposes of the income-tax act, subject to the modifications spe- rifled in sub-section (2) ;(2) the modifications referred to in sub-section (1) shall be the following, namely: —(a) in section 124 of the income-tax act,—(i) in sub-section (3), references to the provisions of the 5q income-tax act shall be construed as references to the corres­ponding provisions of the gift-tax act, 1990;control of gifttax au­thoritiesinstruc­tions to subordi­nate au­thoritiesjurisdic­tion of assessing officers andpower to transfercases(ifi) sub-section (5) shall be omitted;(b) in section 127 of the income-tax act, in the explanation below sub-section (4) references to proceedings ■under the incometax act shall be construed as including references to proceedings under the gift-tax act 199011 the chief commissioner or commissioner and the deputy com­missioner shall be competent to make any enquiry under this act, and for this purpose, shall have all the powers that an assessing officer has under this act in relation to the making of enquiriespower of chief commis­sioner or com­missioner and of deputy commis­sioner to make enquiries10 a ssessmentreturnofgifts12 (1) every person whto during a previous year has received any taxable gifts, or is assessable in respect of the taxable gifts received by any other person under this act, which, in either case, exceeded the maxi­mum amount not chargeable to gift-tax, shall, on or before the 30th day 15 of june of the corresponding assessment year, furnish a return of such gifts in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed(2) notwithstanding anything contained in any other provision ofthis act, a return, not being a return furnished in response to a notice 20 under section 17, which shows the amount of taxable gifts below the maximum amount which is not chargeable to tax shall be deemed never to have been furnishedreturn after due date and amend­ment of return13 if any person has not furnished a return within the time allowed ^_ under sub-section (1) of section 12 or by a notice issued under clause (i)'of sub-section (6) of section 16 or having furnished amendment of a return discovers any omission or wrong statement therein, he may furnish a return or a revised return, as the case may be, at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier >(l14 the return made under section 12 or section 13 shall be signed and verified—(a) in the case of an individual,—return by whow to besigned(i) by the individual himself;(ii) where he is absent from india, by the individual him- 25 self or by some person duly authorised by him in this behalf;(iii) where he is mentally incapacitated from attending to his affairs, by his guardian or any other person competent to act on his behalf; and(iv) where, for any other reason, it is not possible for the in­dividual to sign the return, by any person duly authorised by him in this behalf:provided that in a case referred to in sub-clause (ii) or sub-clause 5 (iv), the person signing the return holds a valid power of attorney from the individual to do so, which shall be attached to the return;(b) in the case of a hindu undivided family, by the karta, and where the karta is absent from india or is mentally incapacitatedfrom attending to his affairs, by any other adult member of such 16 family;  , (! ^(c) in the case of a company, by the managing director thereof or where for any unavoidable reason such managing director is not able to sign and verify the return, or where there is no managing director, by any director thereof:15 provided that where the company is not resident in india, the return may be signed and verified by a person who holds a valid power of attorney from such company to do so, which shall be attached to the return:provided further that,—20(q) where the company is being wound up, whether under the orders of the court or otherwise, -or where any person has been ap­ pointed as the receiver of any assets of the company, the return shall be signed and verified by the liquidator referred to in sub-section (1) of section 178 of the income-tax act:25(b) where the management of the company has been taken over by the central government or any state government under any law,the return of the company shall be signed and verified by the princi­pal officer thereof;(c) in the case of a firm, by the managing partner thereof or30where for any unavoidable reason such managing partner is not able to sign and verify the return, or where there is no managing partner as such, by any partner thereof, not being a minor;(d) in thp case of any other association, by any member of theassociation or the principal officer thereof; and35(e) in the case of any other person, by that person or by some person competent to act on his behalf15 (1) where any tax is payable on the basis of any return furnished under section 12 or under section 13 or in response to a notice under r clause (0 of sub-section (6) of section 16 or under section 17, after taking 40 into aeeount the amount of tax, if any already paid under any provision of this act, the assessee shall be liable to pay such tax, together with interest payable under any provision of this act for any delay in furnish ing the return,, before furnislrng the return and the return shall be ac companied by proof of payment of such fax and interestexplanation—where the amount paid by the assessee under this sub-section falls short of the aggregate of the tax and interest as aforesaid, the amount so paid shall first be adjusted towards the interest payable as aforesaid and the balance, if any, shall be adjusted towards the tax payable 5(2) after the regular assessment under section 16 has been made, any amount paid under sub-section (1) shall be deemed to have been paid towards such regular assessment (3) if any assessee fails to pay the whole or any part of such tax or interest or both in accordance with the provisions of sub-section (1), he ]q shall, without prejudice to any other consequences which he may incur, be deemed to be an assessee in default in respect of the tax or interest or both remaining unpaid and all the provisions of this act shall apply accordingly16 (1) (a) where a return has been made under section 12 or section 15 13 or in response to a notice under clause (i) of sub-section (6),_(?) if any tax or interest is found due on the basis of such return after adjustment of any amount paid by way of tax or interest, an intimation shall be sent to the assessee specifying the sum so payable, and such intimation shall be deemed to be a notice issued under sec- 20 tion 38 and all the provisions of this act shall apply accordingly; and(ii) if any refund is due on the basis of such return, it shall be granted to the assessee: provided that in computing the tax or interest payable by, or re­fundable to the assessee the following adjustments shall be made in the 25 taxable gifts declared in the return, namely: —(i) any arithmetical errors in the return, accounts or documents accompanying it shall he rectified;(ii) any exemption which, on the basis of the information avail­able in such return, accounts or documents, is prima facie admissible 39but which is not churned in the return, shall be allowed;(in) any exemption claimed in the return, which, on the basis of the information available in such return, accounts or documents, is prima facie inadmissible, shall be disallowed:provided further that where adjustments are made under the first 35 proviso, an intimation shall be sent to the assessee, notwithstanding that no tax or interest is found due from him after making the said adjust­ments:provided also that an intimation for any tax or interest due under this clause shall not be sent after tbfe expiry of two years from the end 49of the assessment year in which the gifts were first assessable(b) where as a result of an order made under sub-section (5) or sub­section (7) of this section or section 17 or section 27 or section 23 or sec­tion 29 or section 31 or section 33 or section 42 relating to any earlier- assessment year and passed subsequent to the filing of the return referred to in clause (a), there is any variation in the exemption claimed in the return, and as a result of which,—(i) if any tax or interest is found due, an intimation shall be sent 5 to the assessee specifying the sum so payable, and such intimation shall be deemed to be a' notice of demand issued under section 38 and all the provisions of this act shall apply accordingly; and(u) if any refund is due, it shall be granted to the assessee:provided that an intimation for any tax or interest due under this 10 clause shall not be sent after the expiry of four years from the end of the financial year in which any such order was passed,(2) (a) where in the case of any person, the taxable gift, as a result of the adjustments made under the first proviso to clause (a) of sub­section (1), exceeds the taxable gift declared in the return by any15 amount, the assessing officer shall,—(i) further increase the amount of tax payable under sub-section (1) by an additional gift-tax calculated at the rate of twenty per cent, of the tax payable on such excess amount and specify the additional gift-tax in the intimation to be sent under sub-clause (j)2o of clause (a) of sub-section (1); 1(ii) where any refund is due under sub-section (1), reduce the amount of such refund by an amount equivalent to the additional, gift-tax calculated under sub-clause (i)(b) where as a result of an order under section 27 or section 28 or 25 section 29 or section 31 or section 33 or section 42, the] amount on which additional gift-tax - s payable under clause fa) has been increased or reduced, as the case may be, the additional gift-tax shall be increased or reduced accordingly, and,—(t) in a case where the additional gift-tax is increased, the as­sessing officer shall serve on the assessee a notice of demand under section 38; ;-  -  ' j(ii) in a case where the additional gift-tax is reduced, the excess amount paid, if any, shall be refundedexplanation—for the purposes of this sub-section, "tax payable on 22 such excess amount" means the difference between the, tax on the tax­able gift and me tax mat would nave neen cnargeame nad such taxuoie gift been reduced by the amount of adjustments(3) where an assessee furnishes a revised return under section 13 after the issue of an intimation, or the grant of refund, if any, under^  sub-section (1) of this section, the provisions of sub-sections (1) and (2) of this section shall apply in relation to such revised return and—(i) the intimation already sent for any gift-tax, additional gifttax or interest shall be amended on the basis of the said revised return and where any amount payable by way of gift-tax, additionaljjift-tax or interest specified in the said intimation has already been paid by the assessee then, if any such amendment has the effect of— 1(a) enhancing the amount already paid, the intimation am­ended under this clause shall be sent to the assessee specifying the excess amount payable by him and such intimation shall be 5 deemed to be a notice of demand issued under section 38 and ■( all the provisions of this act shall apply accordingly;(f>) reducing the amount already paid, the excess amountpaid shall be refunded to the assessee;(ii) the amount of the refund already granted shall be en- lo hanced or reduced on the basis of the said revised return and where the amount of refund already granted is—(a) enhanced, only the excess amount of refund due to the assessee shall be paid to him;(b) reduced, the excess amount so refunded shall be deemed 15to be the tax payable by the assessee and an intimation shall be sent to the assessee specifying the amount so payable, and such intimation shall be deemed to be a notice of demand issued under section 38 and all the provisions of this act shall apply accordingly; jprovided that an assesse, who has furnished a revised return under section 13 after the service upon him of the intimation under sub-section(1) of this section, shall be liable to pay additional gift-tax in relation to the adjustments made under the first proviso to clause (a) of sub­section (1) and specified in the said intimation, whether or not he has 25 made the said adjustments in the revised return(4) where a return has been made under section 12 or section 13 or in response to a notice under clause (i) of sub-section (6) of this sec­tion, the assessing officer shall, if he considers it necessary or expedi­ent to ensure that the assessee has not omitted to disclose any taxable ^  gift or has not understated the amount or value of any such gift or has not under-paid the tax in any manner, serve on the assessee a notice requiring him, on a date to be specified therein, either to attend, at the office of the assessing officer or to produce, or cause to be produced there, any evidence on which the assessee may rely in support of the return;provided that no notice under this sub-section shall be served on the assessee after the expiry of the financial year in which the return is furnished or on the expiry of six months from the end of the month in which the return is furnished, whichever is later 40(5) on the date specified in the notice issued under sub-section (4) or, as soon afterwards as may be, after hearing such evidence as the assessee may produce and such other evidence as the assessing officer£■ r   a,,et "  »  " »«u  «to order in writine s « «  'n,h''" gathered the assessing officer shall, by iand determine the sum payable v   ,^xable sfts; received by the assessee sum payablc b5' hlm °n the basis of such assessment5a ,j " n"f° ^ ! , p0,p" " '  ° ' " " kl" s "  —<m  under this act, the under m™, ; , ! , " ", "  " y p" !<'n h«- " -   - return notice reaitirino- bim a  furmshmg the return has expired, a-  1 g him, on a date to be specified therein,__allowed p p   t h pf rson has not made a return within the time i taxable ' iff p ° \ p  ° f secti° n 12' t0 furnish a return   the taxable gifts received by him or of the taxable gifts received hv"  t"\ ° ' wmch   '-------- >• u u t  s ts i15s s i b s t r and setting forth such °^her                                                       »                                                         4                                                              beor otw  ' h pr°duc!  °r cause t0 be producc(i such accounts, records or other documents as the assessing officer may require,(7) if any person,—20_  , (a\ falls to make the return required under sub-section (2)undtr v has n0t made a return or a revised returnunder section 13, or(b) fails to comply with all the terms of a notice issued under sub-section (4) or sub-section (6),25 the assessing officer, after taking into account all relevant material w ich he has gathered, shall, after giving such person an opportunitv f being heard _ estimate the value of taxable gifts to the best of his judgment and determine the sum payable by such person on the basis of such assessment: - __ i30 provided that such opportunity shall he given by the assessing offi­ah w7 onl a up°n thp pgrs0n t0 show " use, on a date and time to be specified in the notice, why the assessment should not g completed to the best of his judgment:35 nit pr°vlded further tkat it shall not be necessary to give such opportu­nity ,n a case where a notice under sub-section (6) has been issued prior to the making of the assessment under this sub-sectionnf j  v  notwithstandinr anything contained in section 6, for the purpose of making an assessment under this act where under the provisions of 40 section 6 read with schedule it the fair market value of any property transferred by wav of gift is to be taken into account in such assessment, assessing officer may refer the valuation of such property to the valuation officer,—fa) m a case, where the value of the property as returned in accordance with the estimate made by a registered valuer, if theassessing officer is of opinion that the value so returned is less than its fair market value;(b) in any other case, if the assessing officer is of opinion—(i) that the fair market value of the property exceeds the value of the property as returned by more than such percentage 5 of the value of the property as returned or by more than such amounts as may be prescribed in this behalf; or i - | (ii) that having regard to the nature of the property andother relevant circumstances, it is necessary so to do, 10- tr -  , - and where any such reference is made, the provisions of sub-sections (2),(3) 0, (5) and (6) of section 16a, clause (ho) of sub-section (1) and sub-section (3a) and (4) of section 23, sub-section (5) of section 24, section 34aa section 35 and section 37 of the wealth-tax act, shall with the necessary modifications, apply in relation to such reference as 15 they apply in relation to a reference made by the assessing officer under sub-sefction (i) of section isa of that act(9) where a regular assessment under sub-section (5) or sub-section(7) is made,—(o) any tax or interest paid by the assessee under sub-section 20(2x stall be deemed to have been paid towards such regular assess­ment;(b) if no refund is due on regular assessment or the amount refunded under sub-section (1) exceeds the amount refundable on regular assessment, the whole or the excess amount so refunded 25 shall be deemed to be tax payable by the assessee and the provisions of this act shall apply according17 (1) if the assessing officer has reasons to believe that the tax­able gifts in respect of which any person is assessable under this act (whether received by him or by any other person) have escaped assess- 30 ment for any assessment year (whether by reason of under-assessment or assessment at too low a rate or otherwise), he may, subject to the other provisions of this section and section 18, serve on such person a notice requiring him to furnish within such period, not being less than thirty days, as may be specified in the notice, a return in the prescribed 35 form and verified in the prescribed manner, setting forth the taxable gifts received by him or by such other oerson during the previous year mentioned in the notice, in respect of which he is assessable, along with such other particulars as may be required by the notice, and may pro­ ceed to assess or re-assess such gifts and also any other taxable gifts 40 in respect of which such person is assessable, which have escaped assess­ ment and which come to his notice subsequently in the course of the proceedings under this section for the assessment year concerned (here­ after in this section referred to as the relevant assessment year); and the provisions of this act stall, so far as may be, applv as if the return 45 were a return required under section 12:- " 7 ivjf1_ provided that where an assessment under sub-section (5) of section 16 or this section has been made for the relevant assessment year, no action shall be taken under this section after the expiry of four years from the end of the relevant assessment year, unless any taxable gift 5 chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to make a return under section 12 or section 13 or in response to a notice issued under sub­section (6) of section 16 or this section or to disclose fully and truly all material facts necessary for his assessment for that assessment year:| jo provided further that the assessing officer shall, before issuing any notice under this sub-section, record his reasons for doing soexplanation—production before the assessing officer of account books or other evidence from which material evidence could with due diligence have been discovered by the assessing officer will not neces- 15 sarily amount to disclosure within the meaning of the forgoing proviso(2) no notice under sub-section (1) shall be issued for the relevant assessment year,— f j(a) in a case where an assessment under sub-section (5) of secsection 16 or sub-section (1) of this section has been made for such20 assessment year,— | ;(i) if four years have elapsed from the end of the rele­vant assessment year, unless the case falls under sub-section (ii) or sub-clause (in);(ll> lf four years, but not more than seven years, have elapsed from the end of the relevant assessment year, unless the value of taxable gifts chargeable to tax which have escaped assessment amounts to or is likely to amount to rupees fifty thousand or more for that year;(ui) if seven years, but not more than ten years, have elap- -50 sec^ from the end of the relevant assessment year, unless the value of taxable gifts chargeable to tax which have escaped assessment amounts to or is likely to amount to rupees one lakh or more for that year; (b) in any other case,— | j 35 (0 if four years have elapsed from the end of the relevantassessment year, unless the case falls under sub-clause (ii) or sub-clause (hi) ; ] i(ii) if four years, but not more than seven years, have elap­sed from the end of the relevant assessment year, unless the40 value of taxable gifts chargeable t0 tax which have escapedassessment amounts to or is likely to amount to rupees twenty-five thousand or more for that year;(ui) if seven years, but not more than ten years, have elap­sed from the end of the relevant assessment year, unless the 4j value of taxable gifts chargeable to tax which have escapedassessment amounts to or is likely to amount to rupees fiftv thousand or more for that yearexplanation<—for the purposes of sub-section (1) and sub-section(2), the following shall also be deemed to be cases where taxable gifts chargeable to tax have escaped assessment, namely: —(a) where no return of taxable gifts has been furnished by the assessee although the taxable gifts received by him or the taxable 5 gift received by any other person in respect of which he is assessable under this act during the previous year exceeded the maximum amount which is not chargeable to gift-tax;(b) where a return of taxable gifts has been furnished by the assessee but ho assessment has been made and it is noticed by the 10 assessing officer that the assessee has understated the amount or value of the taxable gifts or has claimed excessive exemption in the return ](3) (a) in a case where an assessment under sub-section (5) of section 16 or sub-section (i) of this section has been made for the rele- jj vant assessment year, no notice shall be issued under sub-section (i) by an assessing officer, who is below the rank of assistant commissioner, unless the deputy commissioner is satisfied on the reasons recorded by such assessing) officer that it is a fit case for the issue of such notice:provided that, after the expiry of four years from the end of the 2q relevant assessment year, no such notice shall be issued unless the chief commissioner or commissioner is satisfied, on the reasons record­ed by the assessing officer aforesaid, that it is a fit case for the issue of such notice(b) in a case, other than a case falling under clause (a), no notice 25 shall be issued under sub-section (i) by an assessing officer, who is below the rank of deputy commissioner, after the expiry of four years from the end of the relevant assessment year, unless the deputy com­missioner is satisfied, on, the reasons recorded by such assessing officer, that it is a fit case for the issue of such notice jq(4) nothing contained in this section limiting the time within which any proceedings for assessment or reassessment may be commenced shall apply to an assessment or reassessment to be made on the assessee or any person in consequence of or to give effect to any finding or direction contained in an order under section 27, section 28, section 29, ^ section 31 or section 33 or by a court in any proceedings under any other law ! !18- (1) no order of assessment shall be made under section 16 at any time after the expiry of two years from the end of the assessment year in which the gifts were first assessable 40time limit for comple­tion of assess­ment and reassess­ment(2) no order of assessment or reassessment shall be made under section 17 after the expiry of two years from the end of the financial year in which the notice under sub-section (1) of that section was served ! 1(3) notwithstanding anything contained in sub-sections (1) and (2), an order of fresh assessment in pursuance of an order passed undersection 2?, section 28, or section 29, setting aside or cancelling an assess­ment, may be made at any time before the expiry of two years from the end of the financial year in which the order under section 27 or section 28 is received by the chief commissioner or commissioner or, as the 5 case may be, the order under section 29 is passed by the chief commis­sioner or commissioner(4) the provisions of sub-sections (1) and (2) shall not apply to the assessment or reassessment made on the assessee in consequence of, or to give effect to, any finding or direction contained in an order under 10 section 27, section 28, section 29, section 31 or section 33 or in an order of any court in a proceeding otherwise than, by way of appeal or refer­ence under this act and such assessment or reassessment may, subject to the provisions of sub-section (3), be completed at any timeexplanation 1—in computing the period of limitation for the pur- 15 poses of this section— ■(i) the time taken in reopening the whole or any part of the proceeding or in giving an opportunity to the assessee to be reheard under the proviso to section 51, or(ii) the period during which the assessment proceeding is stay- 20 ed by an order or injunction of any court, shall be excluded >explanation 2—where, by an order referred to in sub-section (4) , any gift is excluded from the taxable gifts for an assessment year in respect of an assessee, then, an assessment of such gift for another as­sessment year shall, for the purposes of sub-section (4) of section 17 and this section, he deemed to be one made in consequence of, or to give effect to, any finding or direction contained in the said order19 (1) where a return of gifts for any assessment year under sub­section (i) of section 12, or section 13, or in response to a notice under 30 clause (i) of sub-section (6) of section 16, is furnished after the 30th day of june -of such year, or is not furnished, the assessee shall be liable to pay simple interest at the rate of two per cent, for every month or part of a month comprised in the period commencing on the 1st day of july of the assessment year and,—| 35                                                         | (a) where thg return is furnished after the 30th day of june   ||------------------------------------------------------------|----------------------------------------------------------------|| ending on the date of furnishing of the return; oi'        |                                                                || (b)                                                        |                                                                || where n,o return has been furnished, ending on the date of |                                                                || completion of the assessment under                         | sub-section (7) of section 16,                                 |on the amount of tax payable on the taxable gifts as determined under 40 sub-section (1) of section 16 or on regular assessmentexplanation 1—in this sub-section, "tax payable on the taxable gifts as determined under sub-section (1) of section 16" shall not include the additional gift-tax, if any, payable under section 16interest for de­faults in furnish­ing return of giftsexplanation 2—where in relation to an assessment year, the assess­ment is made for the iirst time under section 17, the assessment so made shall be regarded as a regular assessment for the purposes of this sectionexplanation 3—in this sub-section, "tax payable on the taxable gifts as determined under sub-section (1) of section 16 or on regular assess- j ment" shall, for the purposes of computing the interest payable under section 15" be deemed to be tax payable on the taxable gifts as declared in the return(2) the interest payable under sub-section (1) shall be reduced by the interest, if any, paid under section 15 towards the interest chargeable jq under this section(3) where the return of gifts for any assessment year, required by a notice under sub-section (1) of section 17 issued after the determination of taxable gifts unaer sub-section (1) of section 16 or alter the comple­tion of an assessment under suo-section (5) or sub-section (7) of section 16 or section 17, is furnished after the expiry of the time allowed under such notice, or is not furnished, the assessee shall be liable to pay simple interest at the rate of two per cent, lor every month or part of a month comprised in the period commencing on the day immediately following the expiry of the time allowed as aforesaid, and,— 20(a) where the return is furnished after the expiry of the time aforesaid, ending on the date of furnishing the return; or(b) where no return has been furnished, ending on the date of completion of the reassessment under section 17on the amount by which the tax on the taxable gifts determined on the 25 basis of such reassessment exceeds the tax on the taxable gifts as 'deter­mined under sub-section (1) of section 16 or on the basis of the earlier assessment aforesaid(4) where, as-a result of an order under section 27 or secton 28 or sec non 29 of section 31 or section 33 or section 42, the amount of tax on jq which interest was payable under this section has been increased or reduced, as the ease may be, the interest shall be increased or reduced accordingly, and,—(i) in a case where the interest is increased, the assessing officer shall serve on the assessee a notice of demand in the prescribed ^  form specifying the sum payable, and such notice of demand shall be deemed to be a notice under section 38 and the provisions of this act shall apply accordingly, and(ii) in a case where the interest is reduced, the excess interest paid, if any, shall be refunded 4020 (1) if the assessing officer, deputy commissioner (appeals), commissioner (appeals), chief commissioner or commissioner or appellate tribunal, in the course of any proceedings under this act, is satisfied that any person'— (a) has failed to comply with a notice under sub-section (4) or 45 sub-section (6) of section 16; or(b) has concealed the particulars of any gift or deliberately furnished inaccurate particulars thereof,penaltyforfailure tofurnishreturns,to complywithnotices andconceal­ment of gifts, etclie or it may, by order in writing, direct that such person shall pay by way of penalty—  7 y| 0 ) in the                                                         | cases referred to in clause (a), in addition to the    ||--------------------------------------------------------------------|--------------------------------------------------------|| amount of gift-tax payable by him, a sum which shall not be less   |                                                        || than one thousand rupees but which may extend to                   | twenty-five                                            || thousand rupees for each such failure;                             |                                                        || 10                                                                 |                                                        || (ii) in the cases referred to in clause (b), in addition to any    |                                                        || gift-tax payable by him, a sum which shall not be less than twenty |                                                        || per cent, but which shall not exceed one and half times the amount |                                                        || of the tax if any, which would have been                           | avoided if the return                                  || made by such person had been accepted as correct:                  |                                                        |provided that in the cases referred to in clause (a), no penalty s all be imposable if the person proves that there was a reasonable cause for the failure referred to in that clause-id explanation— where any adjustment is made in the taxable giftsdeclared in the return under the first proviso to clause (a) of sub-section(1) of section 16 and additional gift-tax charged under that section, the provisions of this sub-section shall not apply in relation to the adjust­ments so made20 (2) no order imposing a penalty under sub-section (1) shall bemade unless the assessee has been heard or has been given a reasonable opportunity of being heard |(3) no order imposing a penalty under sub-section (1) shall bemade,—; 125(i) by the income-tax officer, where the penalty exceeds ten thousand rupees;(ii) by the assistant commissioner, where the penalty ex­ceeds twenty thousand rupeesj 'except with the prior approval of the deputy commissioner30 (4) a deputy commissioner (appeals), a commissioner (appeals),a chief commissioner or commissioner or the appellate tribunal on making an, order under this section imposing a penalty, shall forthwith send a copy of the same to the assessing officer,(5) no order imposing a penalty under this section shall be passed—| 35                                                                    | (i) in a case where the assessment to which the proceedings for   ||-----------------------------------------------------------------------|-------------------------------------------------------------------|| imposition of penalty relate is the subject-matter of an appeal to    |                                                                   || the deputy commissioner (appeals) nr                                  | commissioner                                                      || under section 27 or an appeal to the appellate tribunal under sub­     |                                                                   || section (                                                             |                                                                   || 2)                                                                    |                                                                   || of section 28, after the expiry of the financial vear in              |                                                                   || 40                                                                    | which th£ proceedings, in the course of which action for the im­   || position of penalty has beer initiated, are como1et°d n- six months |                                                                   || from the end of the month m which the order of the denutv com­         |                                                                   || missioner (appeals) or the commissioner (appeals) or as the case     |                                                                   || may be, the appellate tribunal is received by the chief commis-       |                                                                   || 45                                                                   | sioner or commissioner, whichever is later;                       || (ii) in a case where the relevant                                   ||---------------------------------------------------------------------|| matter of revision under sub-section (2) of section 29, after the   || expiry of six months from the end of the month in which such order  || of revision is passed;                                              || (in)                                                                || in any other case, after the expiry of the financial year in-5      || which the proceedings, in the course of which action for the impo­   || sition of penalty has been initiated, are completed, or six months  || from the end of the month in which action for imposition of penalty || is initiated, whichever period expires later                       |explanation— in computing the period of limitation for the purposes 10 of this section,—(i) the time taken in giving an opportunity to the assessee to be reheard under the proviso to section 51, and(ii) any period during which a proceeding under this section for the levy of penalty is stayed by an order or injunction of any 1'5 court, shall be excluded |21 (1) if a person,—(o) being legally bound to state the truth of any matter touch­ing the subject of his assessment, refuses to answer any question 20 put to him by a gift-tax authority in the exercise of his powers under this act; or (b) refuses to sign any statement made by him in the course of " any proceedings under this act, which a gift-tax authority may legally require him to sign; or 2jpenaltyforfailure to answer questions, sign state­ments, furnish informa­tion, allow inspec­ tion, etc(e) to whom a summons is issued under sub-section (1) of sec­tion 49, either to attend to give evidence or produce books of account' or other documents at a certain place and time omits to attend or produce the books of account or documents at the place and time,he shah pay, by way of penalty, a sum which shall not be less than five; 3q hundred rupees but which may extend to ten thousand rupees' for each such default or failure; ■provided that no penalty shall be imposable under clause (c) if the - person proves that there was reasonable cause for the said failure(2) if a person fails to furnish in due time any statement or infor- 35 mation which such, person is bound to furnish to the assessing officer under section 50, he shall pay, by way of penalty,, a sum which shall not be less than one hundred rupees but which may extend to two hundred rupees for every day during which the failure continues:provided that no penalty shall be imposable under this sub-section 40, of the person proves that there was reasonable cause for the said failure ^- r- ,'ry  ■(3) any penalty imposable under sub-section (1) or sub-section (5) shall be imposed,-—(a) in a case where the contravention, failure or default in res­pect of which such penalty is imposable occurs in the course of any i proceeding before a gift-tax authority not lower in rank than a deputy director or a deputy commissioner, by such gift-tax autho­rity;(b) in any other case, by the deputy director or the deputy commissioner, t /1 - (4) no order under this section shall be passed by any gift-tax autho­rity referred to in sub-section (3) unless the person on whom penalty is proposed to be imposed has been heard or has been given a reasonable opportunity of being heard in the matter by such authorityexplanation—in this section, "gift-tax authority'' includes a d'rec- 15 tor general, director, deputy director, assistant director or valuation officer while exercising the powers vested in a court under the code of iollsob, civil procedure, 1908 when trying a suit in respect of the matters speci­fied in sub-section (1) of section 49 chapter v20 l iability to assessment in special cases; 22 (1) where a person dies, his executor, administrator or other deceased legal representative shall be liable to pay out of the estate of the deceased payl'bie person, to the extent to which the estate is capable of meeting by legal the charge, the gift-tax determined as payable by such person, or any rcpresen- 25 sum which would have been payable by him under this act, if he had tatvenot died(2) where a person dies without having furnished a return under section 12 or after having furnished a return which the assessing officer has reason to believe to be incorrect or incomplete, the assessing officer 30 may make an assessment of the value of the taxable gifts received by ' such person and determine the gift-tax payable by him, and for this purpose may, by the issue of the appropriate notice which would have had to be served upon the deceased person if he had survived, require from the executor, administrator or otner regal representative of the 35 deceased person any accounts, documents, or other evidence which mightunder the provisions of section 16, have been required from the deceased person(3) the provisions of sections 12, 13 and 17 shall apply to an executor, administrator or, other legal representative as they apply to any person 40 referred to in those sections23 (1) notwithstanding anything contained in section 3, when it mentof appears to the assessing officer that any individual may leave india persons during the current assessment year, or shortly after its expiry and leaving that he has no present intention of returning to india, the gifts received india45 by such individual during the period from the expiry of the previous year for that assessment year up to the probable date of his departure from india, shall be chargeable to gift-tax in that assessment yeartax of(2) the taxable gifts received in each completed previous year of part of any previous year included in such period shall be chargeable to gift-tax at the rate or rates specified in schedule i, and separate assess­ments shall be made in respect of each such completed previous year or part of any previous year 5(3) the assessing officer may estimate the value of the gifts receiv­ed by such individual during such period or any part thereof, where it cannot be readily determined in the manner provided in this act(4) for the purpose of making an assessment under sub-section (1>, the assessing officer may serve a notice upon such individual requiring 10 him to furnish,, within such time, not being less than seven days, as may be specified in the notice, a return in the same form and verified in the same manner as a return under sub-section (1) of section 12, giving particulars of the gifts received by him during each completed previous year comprised in the period refered to in sub-section (!) lj and during any part of the previous year comprised in that period; and the provisions of this act shall, so far as may be, and subject to the provisions of this section, apply as if the notice were a notice issued under clause (i) of sub-section (6) of section 16(5) the gift-tax chargeable under this section shall be in addition 20 to the tax, if any, chargeable under any other provision of this act(6) where the provisions of sub-section (1) are applicable, any notice issued by the assessing officer under clause (i) of sub-section(6) of section 16 or under section 17 in respect of any gift-tax charge­able under any other provisions of this act may, notwithstanding any- 25 thing contained in clause (1) of sub-section (6) of section 16 or section 17, as the case may be, require, the furnishing of the return by such individual within such period, not being less than seven days, as the assessing officer may think proper24 (1) where the gift of any property is made in favour of a minor 3q lunatic or idiot, the guardian or manager who is entitled to receive ot manage the property on behalf of such minor, lunatic or idiot shall be the representative assessee(2) every representative assessee shall be deemed to be ah assessee for the purposes of this act 35(3) every representative assessee, as regards the gift in respect of which, he is a representative assessee, shall be subject to the same duties, responsibilities and liabilities as if the gift were gift received by him, and shall be liable to assessment in his own name in respect of that gift; but any such assessment shall ba deemed to be made upon him in 40 his representative capacity only, and the tax shall be levied upon and recovered from him in like manner and to the same extent as it would be leviable upon and recoverable from the person represented by him(4) every representative assessee who, as such, pays any sum under this act, shall be entitled to recover the sum so paid from the person on 45 whose behalf it is paid, or to retain out of any moneys that may be in his possession or as may be received by him in his representative capacity, an amount equal to the sum so paid, , , j- 'hp n !? t repref ntative le ss e e , or any person who apprehends that he may be assessed as a representative assessee, may retain out of anv money payable by him t0 be person on whose' b e ^ j t l  t b ta  t o5 e i r+( tdafter "  se" ti0n ref61ted as  e  principal) a sum 5 equal to his estimated liability under this act, and in the event of or pessong aser s  t principal and representative assessee z  z z  t0 be s° retained' such representati \re assessee am ount ty sccu?  fr°m the assessins officer a certificate stating the 10 r i  ° s° ret!,md pendin^ final settlement of the liability, and certificate so obtained shall be his warrant for retaining that amount(6) the amount so recoverable from such representative assessee or person at the tune of final settlement shall not exceed the amount spe­cified m such certificate, except to the extent to which such representafive assessee or person may at such time have in his hands additional j assets of the principal, ,, t wll" e an^ ceyson is respect of any gift, assessable under this act in the capacity of a representative assessee, he shall not m respect of that gift, be assessed under any other provision of this a ct25, (1) where,— i202530(i) at the time of making an assessment, it is brought to> the notice of the assessing officer that a partition has taken place among the members of a hindu undivided family, and the assessing officer after enquiry, is satisfied that the joint family property has been partitioned among the various members or groups of members in definite portions, he shall record an 0rdcr to that effect and he shall make assessments on the value of the taxable gifts received bv the family as such as if no partition had taken place and each member or group of members shall be liable jointly and severally for| the tax assessed on the value of the? taxable gifts made bv the joint family as such:  provided that where the assessing officer is not so satisfied he may, by order, declare that such family shall be deemed for 'the purposes of this act to continue to be a hindu undivided family;3540(«) a firm or association of persons liable to pay gift-tax has been discontinued or dissolved, the assessing officer shall determine the gift-tax payable by the firm or association, of persons as such as if no such discontinuance or dissolution had taken place and every person who was at the time of such discontinuance or dissolution, a partner of the firm or a member of the association, as the case may be, shall be jointly and severally liable for the amount 0f tax or penalty payable, and all the provisions of chapter vii, so far as may be, shall apply to any such assessment or imposition of penalty(2) if the assessing officer, the deputy commissioner (appeals)", the commissioner (appeals) or the appellate tribunal in the course of 45 sny proceeding under this act in respect of any such firm or other asso­ciation of persons as is referred to in clause (it) of sub-section (i) is satisfied that the firm or association is guilty of any of the acts specified inliability after partition of a hindu undivided family and in the case of dis­conti­nued firm or associatonof personsfclaiise (a) or clause (b) or clause (c) of sub-section (1) of section 20 he dr it may impose or direct the imposition of a penalty in accordance with the provisions of that section'  26 (i) every person— ; p ;:(a) who is the liquidator of any company which is being wound 5 - up, whether under the orders of a court or otherwise; or(by who has been appointed the receiver of any assets of th"ei company,(hereinafter referred to as the liquidator) shall, within thirty days after he has become such liquidator, give notice of his appointment as 10 such to the assessing officer who is entitled to assess the taxable gifts received by the company ■(2) the assessing officer shall, after making such enquiries or calling for such information as he may deem fit, notify to the liquidator within three months from the date on which he receives notice of the appoint- 5 ment of the liquidator the amount which, in the opinion of the assessing officer, would be sufficient to provide for any tax which is then, or is likely thereafter to become, payable by the company :(3) the liquidator—-(" ) shall not, without the leave of the chief commissioner or 20  commissioner, part with any of the assets of the company or the properties in his hands until he has been notified by the assessing officer under sub-section (2); and r (k) on being so notified, shall set aside an amount, equal to the  amount notified and, until he so sets aside such amount, shall not 25part with any of the assets of the company or the properties in his hands; -provided that nothing contained in this sub-section shall debar the liquidator from parting with such assets or properties for the purpose of the payment of the tax payable by the company or for making any 30 payment to secure creditors whose debts are entitled under law to priority of payment oyer debts due t0 government on the date of liquidation or for meeting such costs and expenses of the wounding up of the company as are in the opinion of the chief commissioner or com­ missioner reasonable, 35(4) if the liquidator fails to give the notice in accordance with sub­section (i) or fails to set aside th|e amount as required by sub-section (3) or parts with any of the assets of the company or the properties in his hands in contravention of the provisions of that sub-section; he shall be personally liable for the payment of the tax which the company would bh liable to pay: j ■4uprovided that if the amount of any tax payable by the company is notified under sub-section (2); the personal liability of the liquidator under this sub-section shall be to the extent of such amount(5) where there are more liquidators than one, the obligations and liabilities attached to the liquidator under this section shall attach to all the liquidators jointly and severally crapter vi a ppeals, revisions and references27 (1) subject to the provisions of sub-section (2), any persons—(a) objecting to the value of taxable gifts determined under this act; or(b) objecting to the amount of gift-tax determined as payable by him under this act; or(c) denying his liability to be assessed under this act; or (d) objecting to any penalty imposed by the assessing officer under section 20; or15(e) objecting to any order of the assessing officer under clause (i) of sub-section (1) of section 25; or(f) objecting to any penalty imposed by the assessing officer under sub-section (1) of section 221 of the income-tax act as applied under section 40 for the purposes of gift-tax; or t>v , (g) objecting to an order of the assessing officer under section2042 having the effect of enhancing the assessment or reducing a refund or an order refusing to allow the claim made by the assessee under that section, may appeal to the deputy commissioner (appeals) against the assess­ ment or order, as the case may be, in the prescribed form and verified in 25 the prescribed manner:' : provided that no appeal shall lie under clause (f) unless the tax has been paid before the appeal is filed(2) notwithstanding anything contained in sub-section (1), any person—30(a) objecting to the value of taxable gifts determined under this act or objecting to the amount of gift-tax determined as payable by him or denying his liability to be assessed under this act where the' value of taxable gifts determined on assessment exceeds two lakh rupees; or(b) objecting to any assessment or order referred to in clauses(o) to (g) (both inclusive) of sub-section (1), where such assessmentor order has been made by the deputy commissioner in exercise of the powers or functions conferred on or assigned to him under sec­tion 7 or section 10; or40 (c) objecting to any penalty imposed under sub-section (1) ofsection 20 with the previous approval of the deputy commissioner as specified in sub-section (3) of that section; ori ts - ' ' '(d) objecting to any penalty imposed by the deputy director or the deputy commissioner under section 21; or| (e)                                                                    ||------------------------------------------------------------------------|| case of such persons or classes of persons as the board may, having    || regard to the nature of the eases, the complexities involved and other || relevant considerations, direct,                                       |may appeal to the commissioner (appeals) against the assessment or 5 order, as the case may be, in the prescribed form and verified in the prescribed manner:provided that no appeal shall lie under clause (b) of this sub-section against any order referred to in clause (f) of sub-section (1) unless the tax has been paid before the appeal is filed 10(3) notwithstanding anything contained in sub-section (2 ),the board or the director general or the chief commissioner or the commissioner, if so authorised by the board, may, by order in writing, transfer any appeal which is pending before a deputy commissioner (appeals) and any matter arising out of or connected with such appeal and which is so lj pending, to the commissioner (appeals), if the board or as the case may be, the director 'general, the chief commissioner or the commissioner (at the request of the appellant or otherwise) is satisfied that it is neces­sary or expedient so to do having regard to the nature of the case, the complexities involved and other relevant consideration and the com- ^0 missioned (appeals) may proceed with such appeal 0r matter from the stage at which it was before it was so transferred:provided that the appellant may demand that before proceeding fur­ther with the appeal or matter, the previous proceeding or any part thereof he reopened or that he be reheard 25(4) an appeal shall he presented within thirty days of the receipt of the notice of demand relating to the assessment or penalty objected to, or the date on which any order objected to, is communicated to him, but the deputy commissioner (appeals) or, as the case mav be, the commis­ sioner (appeals) may admit an appeal after the expiration of the period 30 aforesaid if he is satisfied that the appellant had sufficient cause for not presenting the appeal within that period-(5) the deputy commissioner (appeals) nr as the case may he, the commissioner (appeals) shall fix a day ard place for the hearing of the appeal and may from time to time adjourn the hearing 35(<5) the deputy commissioner (appeals) or, as the1 case may he, the commissioner (appeals) may,—(a) at the hearing of an appeal, allow an appellant tn g0 into any ground of appeal, not specified in the grounds of appeal;(h)' before disposing of an appeal, make such further inquiry 40 as he thinks fit or cause further inquiry to he made hv the assessing officer ! - i(7) in disposing of an appeal, the deputy commissioner (appeals) or, as the case may be, the commissioner (appeals), may pass such order as he thinks fit which may include an order enhancing the amount of gift-tax determined or penalty imposed:5 provided that no order enhancing the amount of gift-tax determined or penalty imposed shall be made unless the person affected thereby has been given a reasonable opportunity of showing cause against such enhancement•<i >• : c ev- a, j -■ - - h:y vj, \ , 1  ,(8) in disposing of an appeal, the deputy commissioner (appeals) 10 or, as th)e case may be, the commissioner (appeals), may consider anddecide any matter arising out of the proceedings in which the order ap­pealed against was passed, notwithstanding that such matter was not raised before the deputy commissioner (appeals) or,'ns the case may be, the commissioner (appeals) by the appellant15 (9) the order of the deputy commissioner (appeals) or, as thec%s£ ipay, be, the commissioner (appeal:-;) disposing of the appeal shall be-in writing and shall state the points lor determination, the decision thereon and the reasons for the decision(10) a copy of every order passed by the deputy commissioner 20 (appeals) or, as the case may be, the commissioner (appeals), under this section, shall be forwarded to the appellant and the chief commissioner or commissioner28 (i) an assesses, objecting to an order passed by the deputy commissioner (appeals) or, the commissioner (appeals) under section 25 20 or section 21 or section 27 may appeal to the appellate tribunal within sixty days of the date on which the order is communicated to himseiaj  ,, - j: ,(2) the commissioner may, if he is not satisfied as to the correct­ness of any order passed by a deputy commissioner (appeals) i or, a commissioner (appeals) under section 27, direct the assessing officer30 to appeal to the appellate tribunal a'gaint such order, and such appeal may be made at any time before the expiry of sixty days of the date on which the order is communicated to the commissioner ■(3) the assessing officer or the assessee, as the! case may be, on receipt of tha notice that an appeal against the, ordqr of the deputy35 commissioner (appeals) or the commissioner (appeals), has'been pre­ferred under sub-section (1) or sub-section (2) by the other party may, notwithstanding that he may not have appealed against such order or any part thereof, within thirty days of the receipt of the notice, file a memorandum of cross objections, verified in the prescribed manner, 40 against any part of the order of the deputy commissioner (appeals) or the commissioner (appeals'), and such memorandum shall be disposed of by the appellate tribunal as ie it were an appeal presented within the time specified in sub-section (1) nr sub-section (2)(4) the appellate tribunal may admit an appeal or permit the fid45 ing of a memorandum of cross objections after the expiry of the rele-vant period referred to in sub-section (i) or sub-section (2) or subsection (3) it it is satisfied that there was sufficient cause for not pre­senting it within that period(5) an appeal to the appellate tribunal shall be in the prescribed form and shali be verified in the prescribed manner and shall, except in 5 the case of an appeal referred to in sub-section (2), be accompanied by a fee of two hundred rupees(6) the appellate tribunal may, after giving the parties to the ap­peal an opportunity of being heard, pass such orders thereon as it thinks nvf'and any such orders may include an order enhancing the amount of 10 giit-tax determined or penalty imposed:> ! provided that no order enhancing the amount of gift-tax determined or penalty imposed shall be made unless the person affected thereby has been given a reasonable opportunity of showing cause against such en­hancement  15(7) a copy of every order passed by the appellate tribunal under this section shall be forwarded to the assesses and the commissioner,(s) save as provided in section 31, any order passed by the appel­late tribunal on appeal shall be final(9) the provisions of sub-sections (i>, (4) and (5) of section 255 of 20 the income-tax act shall apply to iiie appellate tribunal in the dischar­ ge of its function under this act as they apply to it in the] discharge of its functions under the income-tax act2a (1) the commissioner may, either on his own motion or on ap­plication made by an assessee in this behalf, call for the record of any proceeding under this act in which an order has been passed by any authority subordinate to him, and may make such enquiry, or cause such enquiry to be made, and, subject to the provisions of this act, pass such order thereon, not being an order prejudicial to the assessee, as the commissioner thinks fit: --powers of commis­sioner to revise orders of subordi­nate authori­tiesprovided that the commissioner shall not revise any order under this sub-section in any case—(a) where an appeal against the order lies to the deputy com­missioner (appeals) or to the commissioner (appeals) or to the appellate tribunal and the time within which such appeal can be made has not expired or, in the case of an appeal to the commis­sioner (appeals) or to the appellate tribunal, the assessee has not waived his right of appeal;(b) where the order is pending in appeal before the deputy commissioner (appeals) or lias been the subject of an appeal to the 40 commissioner (appeals) or to the appellate tribunal;(c) where the application is made by the assessee for such re­vision unless—' - (i) the application is accompanied by a fee of rupees twenty-five; and(ii) the application is made within one year from the date of the order sought to be revised or within such further period as the commissioner may think fit to allow on being satisfied that the assessee was prevented by sufficient cause from making 5 the application within that period; and(d) where the order is sought to be revised! by the commission­er on his own motion, if such order ig made more than one year previously 1explanation■—for the purposes of this sub-section,—| 10                                                        | (a) the deputy commissioner (appeals) shall be deemed to be   ||-----------------------------------------------------------|---------------------------------------------------------------|| an authority subordinate to the commissioner; and         |                                                               || (b) an order by the commissioner declining                | to interfere shall                                            || be deemed not to be an order prejudicial to the assessee |                                                               |(2) without prejudice to the provisions contained irs pub-section15 (1), the commissioner may call for and examine the record of any pro­ceeding under this act, and if he considers that any order passed there­in by an assessing officer is erroneous in so far as it is prejudicial to the interest of revenue, he may, after giving the assessee an opportu­nity of being heard, and after making or causing to be made such en-20 quiry as he deems necessary, pass such order thereon as the circum­stances of the case justify including an order enhancing or modifying the assessment or cancelling it and directing a fresh assessmentexplanation—for the removal of doubts, it is hereby declared that, for the purposes of this sub-section,—25 (a) an order passed by the assessing officer shall include anorder passed by the deputy commissioner in exercise of the pow­ers or in performance of the functions of an assessing officer con­ferred on or assigned to him under orders or directions issued by the board or by the chief commissioner or director general or30 commissioner authorised bv the board in this behalf under section 120 of the income-tax act read with' section 7 of this act;(b) " record" shall include all records relating to any proceed­ing under this act available at the time of examination by the com­missioner;35 (c) where any order referred to in this sub jection and postedby the assessing officer had been the subject-matter of any appeal, the powers of the 'commissioner under this sub-section sb' 1 ex­tend to such matters as had not been considered and decided in such appeal 140 (3) no order shall be made under sub-section (2v after the expiryof two years from the end of the financial year in which the order sought to be revised was passedexplanation— in computing the period of limitation fo- purpose of this sub-section, the time taken in giving an opportunity to the assessee45 to be reheard under the proviso to section 51 and any period du-ng which anv proceeding under this section is stayed by an order or in junction of any court shall be excludedappeal30 (1) an assessee objecting to an order of penalty passed by the chief commissioner or commissioner under section 20 or section 21 or to an order of enhancement passed by him under section 2s) or an order passed by the director general or director under section 21 may ap­ peal to the appellate tribunal within sixty days of the date on which 5 the order is eomfnun'oated to him,(2) an appeal to the appellate tribunal under sub-section (1) shall be in the prescribed form and shall be verified in the prescribed manner and shall be accompanied by a fee of two hundred rupeesto theappellate tribunal from orders of penalty or enhance­ment by chief jommissi'oner or commis­sioner(3) thai provisions of sub-sections ( 4), (6), (7) and (s) of section 23 10 shall apply in relation to any appeal under thfs section as they apply in relation to any appeal under that sectionrefer­ence to high chief31 (1) the assessee or the chief commissioner or commissioner may, within sixty days of the date upon which he is served with notice of an order' under -section 28 or section 30 by application in the prescri- 35 bed form, accompanied, where the application is made by the assessee, by a fee of two hundred rupees require the appellate trbunal to re­ fer to the high court any question of law arising out of such order and, subject to the other provisions contained in this section, the appel­late tribunal shall, within ore hundred and twenty days bf the receipt ""'it ' of such application, draw up a statement of the case and- refer it to the /uhigh court(2) the appellate tribunal may, if it is satisfied that the applicant was prevented by sufficient cause from presenting the application with­ in the period specified in sub-section (1), allow it to be presented with- 25 in a further period not exceeding thirty days(3) tf on an application made under sub-section (1), the appellate tribunal,—(a) refuses to state a case on the ground that no question of lawarises, or 30(b) rejects it on the ground that it is time-barred, the applicant may within ninety days from the date on which he is served with a notice bf refusal or rejection, as the case may be apply to the high court, and the high court may, if it is not satisfied with the correctness of the decision of the appellate tribunal, require the ap- 35 peltate tribunal to state the case to the high court, and on receipt of such requisition the appellate tribunal shall state the case:prov;ded that, if in any case where the appellate tribunal has been required by an assessee to state a case, the appellate tribunal refuses to do so on the ground that no question of law arises, the assessee may 4q within thirty days from the date on which he receives the notice of refusal to state the case, withdraw bis application, and if b= does so, the fee pa;d by him under sub-section fit shall be refunded to him(4) tf, on an application made under this section, the appellate tri­bunal is of the opinion that on account of a conflict in the decisions of 45high courts in respect of any particular question of law, it is expedient that a reference should be made direct to the supreme court, the ap­ pellate tribunal may draw up a statement of the case and refer it through its president direct to the supreme court5 (5) the statement to the high court or the supreme court shall setforth the facts, determination of the appellate tribunal and the question of law which arises out of the case(6) if the high court or the supreme court is not satisfied that the case as stated is sufficient to enable it to determine the question, of law 10 raised thereby, it may require the appellate tribunal to make such modification therein as it may direct(7) the high court or the supreme court, upon hearing any such case, shall decide the question of law raised therein, and n doing so, may' if it thinks fit, alter the form of the question of law and 15 shall deliver judgment thereon containing the grounds on which such decision is founded and shall send a copy of the judgment under the seal of the court and the signature of the registrar to the appellate tribunal and the appellate tribunal shall pass such orders as are neces­sary to dispose of the case conformably to such judgment2o (8) the cost of any reference to the high court or the supreme court which shall not include the fee for making the reference, shall be in, the discretion of the court32 when a case has been stated to the high court under section 31, it shall be heard by a bench of not less than two judges of the high 25 court and shall be decided in accordance with the opinion of such jud­ges or of the; majority of such judges, if any:provided that where there is no such majority, the judges shall state the point of law upon which they differ and the case shall then be heard upon that point only by one or more of the judges of the high 30 court, and such point shall be decided according to the opinion of the majority of the judges who have heard the case including those who first heard it •33 (1) an appeal shall lie to the supreme court from any judg­ment of the high court delivered on a case stated under section 31 in 3 5 any case which the high court certifies as a fit case for appeal to the supreme court(2) where the judgment of the high court is varied or reversed on appeal under tiffs section, effect shall be given to the order of the supreme court in the manner provided in sub-section (7) of section 31­40 (3) the high court may, on application made to it for the execu­tion, of any order of the supreme court in respect of any costs awarded by it, transmit the order for execution to any court subordinate to the high court,| 34                                                                   | notwithstanding that a reference has been made to the high    ||-----------------------------------------------------------------------|---------------------------------------------------------------|| court or the supreme court, or an appeal has bt^en preferred to the   |                                                               || supreme court, tax shall be payable in accordance with the assessment |                                                               || made in the case                                                     |                                                               || tax                                                                   |                                                               || to be                                                                 |                                                               || paid                                                                  |                                                               || notwith­                                                               |                                                               || standing                                                              |                                                               || refer­                                                                 |                                                               || ence,                                                                 |                                                               || etc                                                                  |                                                               || 35 in this chapter, ''high court" means—                             | 5                                                             || (i)                                                                   |                                                               || in relation to and state, the high court of that state;               |                                                               || defini­                                                                |                                                               || tion of                                                               |                                                               || high                                                                  |                                                               || court,                                                                |                                                               || (ii)                                                                  |                                                               || in relation to the union territory of delhi, the high court           |                                                               || of delhi;                                                             |                                                               || (hi)                                                                  |                                                               || in relation to the states of arunaehal pradesh and mizo­               |                                                               || ram, the gauhati high court (the high court of assam, nagaland, 10   |                                                               || meghalaya, manipur, tripura and mizoram);                             |                                                               || (in) in relation to the union, territory of andaman and nicobar       |                                                               || islands, the high court at calcutta;                                  |                                                               || (v)                                                                   | in relation to the                                            || high court of kerala';                                                | j5                                                            || (ui) in relation to the union territory                               | of                                                            || high court of punjab and haryana;                                     |                                                               || (vii)                                                                 |                                                               || in relation to the state of goa and the                               | union territories                                             || of dadra and nagar haveli and daman: and bin, the high court at       |                                                               || bombay; ;                                                             | 20                                                            || (                                                                     |                                                               || viii                                                                  |                                                               || ) in relation, to the union                                           | territory of                                                  || high court at madras                                                 |                                                               | chapter vii p ayment and recovery of gift-tax36 subject to the provisions of this act, gift-tax shall be payable by 25 the doneegift-tax by whom payable37 gift-tax payable in respect of any gift comprising immovableproperty shall be a first charge on that property but any such charge shall not affect the title of a bona fide purchaser for valuable considera­tion without notice of the charge 30gift-tax to be chargedon pro­perty gifted■notice of demand38 when any tax, additional gift-tax, interest, penalty, fine or any other sum is payable in consequence of any order passed under this act, the assessing officer shall serve upon the assessee a notice of demand in the prescribed form specifying the sum so payable39 (1) any amount specified as payable in a notice of demand under 35 section 38 shall be paid within thirty days of the service of the notice at the place and to the person mentioned in the notice;recovery of tax andpenaltiesprovided that where the assessing officer has any reason to believe that it will be' detrimental to revenue if the full period of thirty days aforesaid is allowed, he may, with,! the previous approval of the deputy commissioner, direct that the sum specified in the notice of demand shall he paid within such period being a period, less than the period of thirty days aforesaid as may be specified by him in the notice of demand,(2) if the amount specified in any notice of demand under section 38 is riot paid within the period limited under sub-section (1),, the assessee shall be liable to pay simple interest at one and one-half per cent, for every month or part of a month comprised in the period com-5 mencing from the day immediately following the end of the period men­tioned in sub-section (1) and ending with the day on which the amount is paid:provided that where as a result of an order under section 27, or section 28, or section 29, or section 30, or section 31 or section 33, or sec-10 tion 42, the amount on which interest was payable under this section had been reduced, the interest shall be reduced accordingly and the excess interest paid, if any, shall be refunded(3) without prejudice to the provisions contained in sub-section (2), on an application made by the assessee before the expiry of the due15 date under sub-section (1), the assessing officer may extend the time for payment or allow payment by instalments subject to such conditions as he may think fit to impose in the circumstances of the case(4) if tile amount is not paid within the time limited under sub­section (1) or extended under sub-section (3), as the case may be, at the20 place and to the person mentioned in the sa;d notice, the assessee shall be deemed to be in default,(5) if, in a case where payment by instalments is allowed under sub-section (3), the assessee commits default in paying any one of the instalments within the time fixed under that sub-section, the assessee25 shall be deemed to be in default as to the whole of the amount then out­standing, and the other instalment or instalments shall be deemed to have been due on the same date as the instalment actually in default(6) where the assessee has presented an appeal under section 27, the assessing officer may in his discretion and subject to such condi-30 tions as he may think fit to impose in the circumstances of the case, treat the assessee as not 'being in default in respect of the amount in dispute in the appeal, even though the time for payment has expired as long as such appeal remains undisposed of40 the provisions contained in sections 221 to 227, 228a, 229 and mode of, ,  232 of the income-tax act and the second and the third recovery schedules to that act and any rules, made thereunder shall, so far as may be, apply as if the said provisions were provisions of this act and referred to gift-tax, additional gift-tax and sums imposed by way of penalty, fine and interest under this act in-40 stead of to income-tax and sums imposed by way of penalty, fine and interest under that act and to the corresponding gift-tax authorities instead of to the income-tax authorities specified thereinexplanation l —any reference to sub-section (2) or sub-section (6) of section 220 of the income-tax act in the said provisions of that act45 or the rules made thereunder shall be construed as references to sub­sections (2) and (6) respectively of section 39 of this actexplanation ii— the chief commissioner or commissioner and the tax recovery officer referred to in the income-tax act shall be deemedto be the corresponding gift-tax authorities for the purpose of recovery oi gift-tax, additional gift-tax and sums imposed by way of penalty, fine and interest under this act chapter viiir efunds refunds ^  where, as a result of any order passed in appeal or otherproceeding under this act, refund of any amount becomes due to the assessee, the assessing officer shall, except as otherwise provided in this act, refund the amount to the assessee without his having to make any claim in that behalf:provided that where, by the order aforesaid,_(a) an assessment is set aside or cancelled and an order of fresh assessment is directed to be made, the refund, if any, shall become due only on the making of such fresh assessment;(h) the assessment is annulled, the refund shall become due 15 only of thg amount, if any, of the tax paid in excess of the tax chargeable on the taxable gift returned by the assessee(2) where refund of an amount becomes due to the assessee as a result of an order under this act or under the provisions of sub-section(i) of section 16 after a return has been made under section 12 or sec- 20 tion 13 or in response to a notice under clause (i) or sub section (6) of section 16 and the assessing officer is of the oioinion, having regard to the fact that—(t) a notice has been issued, or is likely to be issued, under sub­section (4) of section 16 in respect of the said return; or 25(ii) the order is the subject-matter of an appeal or further proceeding; or(hi) any other proceeding under this act is pending, that a grant of refund is likely to adversely affect the revenue, the assessing officer may, with the previous approval of the chief com- 30 missioner or commissioner, withhold the refund till such time as the chief commissioner or commissioner may determine-(3) (a) where refund of any amount becomes due to the assessee under this act he shall, subject to the provisions of this sub-section, be entitled to receive, in addition to the said amount, simple interest there- 35 on calculated at the rate of one and one-half per cent, for every month or part of a month comprised in the period or periods from the date or, as the case may be, dates of payment of the tax or penalty to the date on which the refund is grantedexplanation— for the purposes of this clause, "date of payment of 40 the tax or penalty" means the date on and from which the amount of tax or penalty specified in the notice of demand issued under section 38 is paid in excess of such demand- rceedings relulting in the refund are de]ayed for reasonsattributable to the assesses whether wholly or in part period of the delayf f  m sbl1^16]t0 ^ shau be excluded from the period for which interest5  fd w h ^ r e any question arises as to the period to he excluded,i s a e eci ed by the e-hief commissioner or commissioner whose decision thereon shall be finalwbere' as a tesult of on order under sub-section (5) or sub-section(7) of section 16 or section 17 or section 27 or section 281 or section 23 or10 ssct1? ?  31 0!  sectl0ri 33 or section 42> the bmaant on which the interest was payable under clause (a) has been increased or reduced, as the case mav he, interest shall be increased or reduced accordingly, and, in a case where the interest ls reduced, the assessing officer shall serve on the assessee a notice of demand in the prescribed form specifying the amount of the ex-15 i f  l rf t p " dand re<3uiring him to pay such amount; and such notice demand shall be deemed to be: a notice under section 38 and the provisiojis of  this act shall apply accordingly(4) where under any of the provisions of this act, a refund is found to be due to any person, the assessing officer, deputy commissioner 20 (appeals) commissioner (appeals) or chief commissioner or gommissioner, as the case may be, may, in lieu of payment of the refund, se+ off the amount to be refunded or any part of that amount, against the sum, if any, remaining payable under this act by the person to whom the refund is due, after giving an intimation in writing to such person of the action proposed to be taken under this section25chapter ix mrscellaneotrs42 (1) with a view to rectifying any mistake apparent from the record— 130(a) the assessing officer may amend any order of assessment or of refund or any other order passed by him;(b) a gift-tax authority may amend any intimation sent by it under sub-section (1) of section 16 or enhance or reduce the amount of refund granted by it under that sub-section;35(c) the deputy director or deputy commissioner or director or commissioner or deputy commissioner (appeals) or commissioner (appeals) may amend any order passed by him under section 21;(a) the deputy commissioner (appeals) or commissioner (appeals) may amend any order passed by him under section 27;(e) the commissioner may amend any order passed by him under40section 29; ,(f) ibe appellate tribunal may amend any order passed bv it under section 28 or section 30(2) subject to the other provisions of this section, the authority con­cerned—' 45(a) may make an amendment under sub-section (1) of its own motion; and(b) shall make such amendment for rectifying any such ndsfralm which has been brought to its notice by the assesses, and where the authority concerned is the deputy commissioner (appeals) or the commissioner (appeals) or the appellate tribunal, by the assessing officer also 5(3) an amendment, which has the effect of enhancing an assessment or reducing a refund or otherwise increasing the liability of the assessee, shall not be made under this section unless the authority concerned has given notice to the assessee of its intention so to do and has allowed the assessee a reasonable opportunity of being heard lo(4) where an amendment is made under this section an order shall be passed in writing by the gift-tax authority concerned(5) subject to the provisions of sub-section (2) of section 41, where any such amendment has the effect of reducing the assessment, the asses­sing officer shall make any refund which may be due to such assessee 15(6) where any such amendment has the effect of enhancing the assessment or reducing a refund already made, the assessing officer shall serve on the assessee a notice of demand in the prescribed form specifying the sum payable, and such notice of demand shall be deemed to be issued under section 38 and the provisions of this act shall apply accordingly 20(7) no amendment under this section shall be made after the expiry of four years from the end of the financial year in which the order sought to be amended was passed43 (1) if any person fails without reasonable cause,—| (a) to furnish in due time any return of gifts under this act;    ||-------------------------------------------------------------------|| (b) to produce, or cause to be produced, on or before the date    || mentioned in any notice under sub-section (5) of section 16, such || accounts, records and documents as are referred to in the notice; |he shall, on conviction before a magistrate, be punishable with fine which may extend to rupees ten for every day during which the default continues 30(2) if a person makes a statement in a verification in any return of gifts furnished jindst this act or in a verification mentioned in section 27,23 or 30 which is false, and which he either knows or believes to be false, or does not believe to be true, he shall, on conviction before a magistrate, be punishable with simple imprisonment which may extend to one year, 35 or with fine which may extend to rupees one thousand, or with both '(3) if a person abets or induces in any manner another person to make and deliver an account, statement or declaration relating to any gifts chargeable to tax which is false and which he either knows to be false or ■roes not believe to be true, he shall, on conviction before a magistrate, 49 be punishable with simple imprisonment which may extend to six months ' or with fine which may extend to one thousand rupees, or with both(4) a person shall not bp proceeded agaipst for an offence under this act except with the previous sanction of the chief commissioner or director ganeral or commissioner:   «"   "   « "« «   "<(a) the board or a chief commissioner or a director general authorised by the board in this; behalf in y i f  general tinn wra,h il +n  / s behalf? in a case where the prosecu- - le at the instance of the commissioner (appeals);in any j f e f l  c « m o n e r  or director general or commissioner, explanation,—for the purposes gf this section "magistrate" means a presidency magistrate or a magistrate of the first class44 (1) where an offence under this act has been committed by a company, every person who, at the time the offence was committed was5 lsl f  " d w"  i' sp«" 'me « »  <   »= sirf c e"fftpany,/ \ w, f 'd s " "  c° " w51,311 ■>' o'5" ®1 » b£3 "d  s ta i !  b6 lhb,<i fc » " ■«»provided that nothing contained in this sub-section shall render anyop s" ft™ hahle t0 any p™ishment if he proves that the offence waseenrtt t u  s kaowled^  °r that he had exercised all due dili­gence to prevent the commission of such offence(2) notwithstanding , " , , - anything contained in sub-section (1) where n offence under this act has been committed by a company and it proved that the offence has been cor 'j' ' - tompany an« wproved that the offence has been co m m itte d ^25 of, or is attributable to any neglect secretary or other officer of theon the part of, any director, manager, " j company', such director managerand shafl "te n  sha11 £f° to be sui%  «  that offence and shall be liable to be proceeded against and punished accordinglyexplanation -for the purposes of this section,—(a) ' company" means a body corporate, and includes—(i) a firm, and or a body of individuals,<?0 an association of persons whether incorporated or not; and(b) "director", in relation to—| 35                                                        | ci) a firm, means a partner in the firm,                             ||-----------------------------------------------------------|----------------------------------------------------------------------|| (ii)                                                      |                                                                      || an association of persons or a body of individuals, means |                                                                      || any member controlling the affairs thereof               |                                                                      || 45                                                       |                                                                      || (                                                         |                                                                      || 1                                                         |                                                                      || )                                                         |                                                                      || where an offence                                          | under this act has been committed by a                               || an                                                        |                                                                      || r                                                        |                                                                      ||                                                           | «                                                                    || ™ dlvlded family' the                                     |                                                                      || karta                                                     |                                                                      || thereof shall be deemed to be guilty                      |                                                                      || of the offence and shati ki ite-w-                        | u; ,                                                                 || 40                                                        | - e offence and shall be liable to be proceeded against and punished || accordingly:                                              | &                                                                    |icajn thbt noth!n,g contained in this sub-section shall render the f   liable to any punishment if he proves that the oflw e was commit­, ,  ^  0r that he had all due diligence to45 prevent the commission of such offenceoffences by com­paniesoffenses(2) notwithstanding anything contained in sub-section (1), where an offence under this act has been committed by a hindu undivided family and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any [neglect on the part of, any member of the hindu undivided family, such member shall also be 5 deemed to he guilty of that offence and shall be liable to be proceeded against and punished accordingly46 nothing contained in section 360 of the code of criminal proce­dure, 1973, or in the probation of offenders act, 1958, shall apply to a 2 of 1974person convicted of an offence under this act, unless that person is 10 20of,95s' eighteen years of age47, (1) in any prosecution for any offence under this act which requires a culpable mental state on the part of the accused, the court shall presume the existence of such mental state but it shall be a defence for the accused to prove the fact that he had no such mental state with 15 respect to the act charged as an offence in that prosecutionsection 360 of the code of criminal procedure, 1973 a®d the pro­bation of offenders act,1958, sot to apply presump­tion aa t©culpable mental stateexplanation,—in this sub-section "culpable mental state" includes intention, motive1 or knowledge of a fact, or belief in, or reason to believe, a fact,(2) for the purposes of this section, a fact is said to be proved only 20 when the court believes it to exist beyond reasonable doubt and not merely when its existence is established by a preponderance of probabilityproof ofentriesinrecords or docu­ments48, entries in the records or other documents in the custody of a gift-tax authority shall be admitted in evidence in any proceedings for the prosecution of any person for an offence under this act, and all such 25 entries may be proved either by the production of the records or other documents in the custody of the gift-tax authority containing such entries, or by the production of a copy of the entries certified by the gifttax authority having custody of the records or other documents under its signature and 'stating that it is a true copy of the original entries anfi that 30 such original entries are contained in the records or other documents in his custody49, (1) the assessing officer, the-deputy commissioner (appeals), the commissioner (appeals), the chief commissioner or commissioner and the appellate tribunal shall, for the purposes) of this act, have the 35 same powers as are vested in a court under the code of civil procedure,1908, when trying a suit in respect of the following matters, namely:—  5 of 1908powerregardingdiscovery,productionofevidence, etc '(a) discovery and inspection;- (b) enforcing the attendance of any person, including any officerof a hanking company and examining him on oath; 40(c) compelling the production of books of account and other documents; and(d) issuing commissions(2) xi the director general or director or deputy director or assis­tant director has reason to suspect that any gifts chargeable to tax under this act have been concealed, or are likely to be concealed, by any person or class of persons within his jurisdiction, then, for the purposes of mak- 5 ing any inquiry or investigation relating thereto, it shall be competent for him to exercise the powers conferred under sub-section (1) on the gift-tax authorities referred to in that sub-section, notwithstanding that no pro­ceedings with respect to such person or class of persons are pending before him or any other gift-tax authority10  50 where, for the purposes of this act, it appears necessary for anygift-tax authority to obtain any statement or information from any person or banking company, such gift-tax authority may serve a notice requiring such person, on or before a date to be therein specified, to furnish such _ statement or information on the points specified in the notice, and that person shall, notwithstanding anything in any law to the contrary, be bound to furnish such statement or information to such gift-tax autho­rity: |provided that no legal practitioner shall be bound to furnish any statement or information under this section based on any professional 2® communications made to him otherwise than as permitted by section 126 of the indian evidence act, 1872,51 whenever in respect of any proceeding under this act, any gifttax authority ceases to exercise jurisdiction and is succeeded by another who has and exercises such jurisdiction, the authority so succeeding may25 continue the proceeding from the stage at which the proceeding was left by- his predecessor;:provided that the assesses concerned may demand that before the proceeding is so continued' the previous proceeding or any part thereof be reopened or that before any order of assessment is passed against him, 3u he be reheard52 in computing the period of limitation prescribed for an appeal or an application under this act, the day on which the order complained of was served and if the assessee was not furnished with a copy of the order when the notice of the order was served upon him, the time35 requisite for obtaining a copy of such order shall be excluded53 (1) a notice or a requisition under this act may be served on the person therein named either by post as if it were a summons issued by a court under the code of civil procedure, 1908(2) any such notice or requisition may, in the case of a firm or a 40 hindu undivided family be addressed to any member of the firm or to the manager or any adult male member of the family, and in the case of a company or association of persons be addressed to the principal officer thereof "(3) after a finding of total partition has been recorded by the assess- 45 :%  officer under section 25 in respect of any hindu undivided fam ly notices under this act in respect of the gift made by the family, she1! be served on the person who was the last manager of the hindu undivided family, or if such person is dead, then on all surviving adults who were ' members of the hindu undivided family immediately before the partitionservice- of (4) where a firm or other association of persons is dissolved,, notices under this att in respect of the gift received by the firm or associdtidh riiiif be served on any person who was a partner (not being a minor) of member of the association, as the case may be, immediately before its dissolution54 (1) if the central government is of opinion, that it is necessary or expedient in the public interest to publish the names of assessees and any other particulars relating to any proceedings or prosecutions publica­tion of in­formation respect­ing asses­seesunder this act in respect of such assessees, it may cause to be published such names and particulars in such manner as it thinks fit(2) no publication under this section shall be made any penalty imposed under this act until the time for presenting an appeal to the deputy commissioner (appeals) or, as the case may be the commissioner (appeals) has expired without an appeal having been presented or the appeal, if presented, has been disposed ofexplanation~lri the case of a firm, company or other association of persons, the names of the partners of the firm, directors, secretaries and reasurers, or managers of the company, 0r the members of the associaon as the case may be, may also be published if, in the opinion of the central government, the circumstances of the case justify it55 where a person makes an application to the chief commissioner disciosurc o f in­ formation respecting assesseesor commissioner m the prescribed form for any information relating to any assessee in respect of any assessment made under this act the chief c  ™ " , " ner "" commissioner may, i, h, "| "  ° d°'                                                         | «  -                     |  > b furnished the information «   ||-------------------------------------------------------------------|--------------------------|--------------------------------------|| re,pem -  « - -  « -                                              | «"ly »nd his derision in | b "                                 || "                                                                 |                          |                                      ||                                                                 |                          |                                      ||                                                                   |                          |                                      || be toai "                                                         | d                        |                                      || »«                                                                |                          |                                      || to                                                                |                          |                                      || in , " y c o                                                     |                          |                                      || inb!"                                                             | "                        | f                                    || return of                                                         |                          |                                      || gifts, etc,                                                      |                          |                                      || not to be                                                         |                          |                                      || invalid on                                                        |                          |                                      || certain                                                           |                          |                                      || grounds                                                           |                          |                                      || sions of this aet h n h                                           | ° r                      | "  p™                               || «  of this aet shall be «                                         | or shl, be deemed       | b , invaiid                          || -t-                                                              |                          |                                      ||                                                                   |                          |                                      || _                                                                 |                          |                                      || ll 1sason 0t                                                      |                          |                                      || any lmstake' defect or omission in such retufn of gifts           |                          |                                      || '' n° ! c6> summ°ns °r °ther proceeding, if such return of gifts! |                          |                                      || assessment notice summons or other                               |                          |                                      || effect in conformity with nr                                      | u "                      | pr°ceedin5> is in substance and      || conrormity with or according to the intent and                    |                          |                                      || act,                                                              |                          |                                      || purpose of this 35                                                |                          |                                      || bar                                                               |                          |                                      || of                                                                |                          |                                      || suits in                                                          |                          |                                      || civil                                                             |                          |                                      || court                                                            |                          |                                      || ss?                                                             |                          |                                      || "'k"' "                                                           | " mde'mdriua i f s      |                                      || 7                                                                 |                          |                                      ||                                                                  | t                        | r                                    || be done                                                          |                          | "  s" d                            |in relation to2058 an assesses who is entitled to or required to attend before any gift-tax authority or the appellate tribunal in connection with any proceeding under this act, except where he is required under this actto attend in person, may attend by a person who' would be entitled to represent him before any income-tax authority or the appellate tribunal under section 2s8 of the income-tax act59 any assesses who is entitled or required to attend before any gifttax authority or the appellate tribunal in connection with any matter relating to the valuation of any asset, except where he is required 10 under this act to attend in person, may attend by a registered valuerthe central government may enter into an agreement with government of any reciprocating country—(a) for the avoidance or relief of double taxation with respect to gift-tax payable under this act and under the corresponding law in force in the reciprocating country, or_ c°) for exchange of information for the prevention of evasion or avoidance of gift-tax chargeable under this act or under the corres­ponding law in force in that country or investigation of cases of such evasion or avoidance, or(c) for recovery of tax under this act and under the correspond­ing law in force ini that country,and may, by notification in the official gazette, make such provision as may be necessary for implementing the agreementexplanation—the expression "reciprocating country" for the purposes 25 of this act means any country which the central government may, by notification in the official gazette, declare to be a reciprocating country61 the amount assessed in accordance with the foregoing provisions of this act as being the value of all taxable gifts shall be rounded off to the nearest multiple of ten rupees and, for this purpose, any part of a rupee 30 conssstog of paise shall be ignored and thereafter, if such amount is not a multiple of ten rupees, then, if the last figure in that amount is five or more, the amount shall be increased to the next higher amount which is multiple of ten and, if the last figure is less than five, the amount shall be reduced to thje next lower amount which is a multiple of ten; and the 35 amount so rounded off shall be deemed to be the value of all taxable gifts of the assesses for the purposes of this act€2 the amount of gift-tax, additional gift-tax, interest, penalty, fine or any other sqm payable, and the amount of refund due, "under the provisions of this act, shall be rounded off to the nearest rupee and, for 40 this purpose, where such amount contains a part of a rupee consisting of paise, then, if such part is fifty paise or more, it shall be increased to one rupee, and if such part is less than fifty paise, it shall be ignored;|83 (1) the boapd may, by notification in the official gazette, jpake power to rules for carrying out the purposes of this act- ' - v - mak®;t appearance before gift-taxauthoritiesbyautho­risedrepresenta­tivesappear­ance by registered valuer in certain matterthoa ggrement fo ravoidance or relief o f doubletaxationwithrespect to gift-taxhound­ing off of taxable giftsrounding off of (2) in particular, and without prejudice to the generality of the fore­going power, rules made under this section may provide for—(a) the manner in which the orders relating to instructions to subordinate authority shall be published and circulated for general information under sub-section (3) of section 8; 5(b) the form in which returns under sub-section (1) of section 12 shall be made and the manner in which they shall be verified(c) the form in which returns under sub-section (6) of section 16 shall he made and the manner in which they shall be verified;(d) the percentage or the amount by which the fair market value jq of the property shall not exceed the value of the property as return­ed -by the assesses under sub-section (8) of section 16;(e) the form in which return under sub-section (1) of section 17 shall be made and the manner in which they shall be verified under that sub-section;(f) the form in which notice of demand under sub-section (4) of section, 19 or under section 38 or under section 41 are to be made(g) the form in 'which appeals under sub-section (1) or sub_ section (2) of section 27, or under sub-section (5) of section 28, or under sub-section (2) of section 30 shall be made, and the manner in which they shall be verified;(h) the form in which application for reference is to be made under sub-section (1) of section 31;(i) the form, in which an application is to be made under section55; : : j(j) any other matter which, has to be or may bel prescribed for the purposes of this act(3) the power to make rules conferred by this section shall include the power to give retrospective effect, from a date not earlier than the date of commencement of this act, to the rules or any of them and, unless the contrary is permitted (whether expressly or by necessary implication), no retrospective effect shall be given to any rule so as to prejudicially affect the interests of assessees(4) the central government shall cause every rule made under this act to be laid as soon as may be after it is made before each house of parliament while it is in session for a total period of thirty days which ^  may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both houses agree in making any modifications in the rule or both houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be, so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that ride 164- (1) the gift-tax act, 1958, is hereby repealed,(2) notwithstanding the repeal of the gift-tax act, 1958 (hereinafter referred to as the repealed act) —(a) in clause (xx) of section 2 of the repealed act, the "previous year relevant to assessment year commencing on the 1st day of april, 1990 shall be the period ending on the 19th day of march, 1990;(b) where a return of gift has been filed before the commence­ment of this act by any person for any assessment year, proceedings for the assessment of that person for that year may be taken and10  continued in accordance with the provisions of the repealed' act, asif this act had not been passed;(c) where a return of gift is filed, after the commencement ofthis act by any person for the assessment year ending on the 31st day of march, 1991, or any earlier year, the assessment of that15 person for that year shall be made in accordance with the provisionsof the repealed act, as if this act had not been passed;(d) any proceeding pending on the commencement of this actbefore any gift-tax authority, the appellate tribunal or any court, by way of appeal, reference,, or revision, shall be continued and2o disposed of in accordance with the provisions of the repealed act, asif this act had not been passed;(e) where in respect of any assessment year ending on the 31st day of march, 1991,—(i) a notice under section 10 of the repealed act had been 25 issued before the commencement of this act, the proceedings inpursuance of such notice may be continued and disposed of in accordance with the provisions of the repealed act, as if this act had not been passed;(®) any gift chargeable to tax had escaped assessment 30 within the meaning of that expression in section 16 and no pro­ceedings under section 16 of the repealed act in respect of any such gift are pending at the commencement of this act, a notice under section 16 may be issued with respect to that assessment year and all the provisions of the repealed act shall apply 35 accordingly, as if this act had not been passed;(f) any proceeding for the imposition of a penalty in respect of any assessment completed before the 20th day of march, 1990,may be initiated and any such penalty may be imposed in accordance with the provisions of the repealed act as if this act had not been 40 passed;(g) any proceeding for the imposition of a penalty in respect of any assessment for the year ending on the 31st day of march, 1991,or any earlier year, which is completed on or after the 20th day of march, 1990 may be initiated and any such penalty may be imposed 45 under the repealed act as if this act had not been passed;(h) where, in respect of any assessment completed before the commencement of this act, a refund falls due after such commence­ ment or default is made after such commencement in the payment of any sum due under such completed assessment, the provisions of ' the repealed act relating to interest payable by the central govern-15 ment on refund and1 interest payable by the assesseses for default shall apply, as if this act had not been passed;(i) any sum payable by way of gift-tax;, additional gift-tax, interest, penalty or otherwise under the repealed act may be recover­ed under the repealed act, as if this act had not been passed-power to remove difficul­ties65 (i) if any difficulty arises in giving effect to the provisions of this act, the central government may, by order published in the official gazette, make such provisions not inconsistent with the such provisions of this act as may appear necessary for removing the difficulty:provided that no such order shall be made after the 31st day of march, 1994(2) every order made under sub-section (1) shall be laid, as soon as may be after it is made, before each house of parliament the second schedule[see sections 6 and 16(8)3r ules for determining the value of property giftedvalue of gifted, property, how to be determined 'the value of any property, other than cash, transferred by way  5 of gift shall, for the purposes of this act, be determined in accordance with the provisions , of schedule iii to the wealth-tax act, which shall apply subject to the following modifications, namely:__in the said schedule,—(a) reference by whatever form of words to the wealth-tax act shall be construed as references to this act;(b) in rule 5, the reference 'to the year ending on the valuation date shall be construed as a reference to the previous year as defined in this act; (c) save as provided in clause (b) references to the valuation -date shall be construed as references to date on which the gift was 25 made; , ^(d) reference to section 7 of the wealth-tax act shall be cons­trued as references to section 6' of this act;(e) references to section 16a of the wealth-tax act shall be 20construed as references to sub-section (8) of section 16 of this act , statement of objects and reasonsat present, gift-tax is charged annually on the value of all taxable gifts made by a donor during a year- there is no tax on the gifts re­ceived by a donee, irrespective of the value the object of 'this bill is to shift the burden of tax: from donors to the recipient of the gifts,1 with a view to curbing laundering of black money and the practice of' explaining wasteful and ostentatious expenditure as; having be^ft incurred out of gifts received2 the bill has the following salient features: —(i) gift-tax will be levied in respect of gifts received by a person during the previous year;(ii) in computing the value of all taxable gifts a number df exemptions shall be taken into consideration the exemptions, inter alia, includes exemption for gifts received in convertible' foreign exchange remitted from a country outside india in accordance with the provisions of the foreign exchange regulation act, 1973;, gifts received by art individual oft he occasion of his marriagb' tip■ tof a maximum of rupees one lakh and gifts received under a will;(iii) there will be a basic exemption of rupees twenty thousand for each year and gift-tax will be levied at progressive rates in- case the gifts received in any year exceeds the maximum limit of exemp­tion ;3 the bill also provides for all other matters relating to levy cjf interest, filing of appeals, rectification of mistakes, recovery of tax, im­position of penalty and prosecution and matters relating to procedure on the lines of the relevant provisions of the existing gift-tax act, 1958:new delhi; madhu dandavate-the 30th may, 1990 , president's recommendation under article 117 of the constitution of india[copy of letter dated the 30th may 1990 from prof madhu daftdavate, minister of finance to the secretary-general lok sabha]the president, having been informed of the subject matter of the gifttax bill, 1990 recommends under clauses (1) and (3) of article 117 of the constitution, the introduction of the above bill in lok sabhaclause 2 defines, infer cilia, "gift", "previous year" and "transfer of property  all voluntas transfers of property without consideration and transfers deemed to be gifts under clause 4 of the bill are covered by the definition of "gift" however, any receipt which is income within die meaning of the income-tax act, shall not be treated as a gift the definition of "previous year" secures that all gifts received during any period, not exceeding, twelve months, ending on the 31st day of march immediately preceding 'the assessment year, are charged to gift-tax in one year however,, the previous year in respect of the assessment year 1991-92 shall be the period commencing on the 20th day of march, 1990 and ending on the 31st day of march, 1991 the definition of "transfer of property" is designed to cover all possible transfers of propertyclause 3 is the charging clause which provides that the tax is to be levied on all gifts received during the previous yea,r by any person, being an individual or a hindu undivided family or a company or a firm or an association of persons or a body of individualsclause 4 brings to charge certain transfers which are for nominal or inadequate consideration or for a consideration which although stipu­lated is not meant to pass actually similarly, the release or discharge from one's debts or liabilities, appropriations or withdrawals from joint accounts for the benefit of a person other than the persons who made the original deposit or investment are brought within the scope of giftsclause 5 provides for the exemptions of various types of gifts these inter alia, includes— (a) gifts of immovable property situated outside the territories to which this act expends;(b) gift by a person resident outside india, out of the monies standing to his credit in a non-resident (external) aceount in any bank in accordance with the provisions of the foreign exchange regulation act;f (c) gifts in convertible foreign exchange remitted from a coun­try 'outside india in accordance with the provisions of the foreign exchange regulation act; j(d) gifts on the occasion of the marriage subject to a maximum of rupees one lakh in value;| (e) gifts received by a political party; and    | -    ||-------------------------------------------------|------|| (f) gifts received under a will                | f    |clause 6 provides for ® e manner in which the values of gifts may be determined the method of valuation shall be the same as provided in the wealth-tax act, 1957 : }_ clauses 7 to 11 deal with 'the administrative machinery the intention is to entrust the administration of this act to the officers of the incometax department under a procedure which follows' broadly the procedure in the repealed gift-tax act, 195ftclauses 12 to 21 are provisions relating to assessment which follows similar provisions in the repealed gift-tax act, 1958clauses 22 to 26 relate to assessment in special cases tnese provisions provide for the liability to assessment in tnd case of a deceased person, persons leaving india, a minor, lunatic or idiot it also provides for assessment on partition of a hindu undivided family, discontinuance of firm or association of persons and a company in liquidationclauses 27 to 35 relate to appeals, revision and references and: are similar to those in the repealed gift-tax act, 1958clause 36 provides that the tax is the liability of the doneeclause 37 makes the gift-tax a first charge on the immovable property comprised in the giftclauses 38 to 40 provide for payment and recovery of the tax and other connected matters and are similar to those in the repealed gift-tax act, 1958clause 41 relates to refund and is similar to the provisions on refund in the repealed gift-tax act, 1958clauses 42 to 62 provide for rectification of mistakes, prosecutions, liability of persons for offences by companies or a hindu undivided family, non-applicability of section 360' of the code of criminal proce­dure, 1973 and the provision of probation of offenders act, 1958, pre­sumption as to culpable mental state, proof of entries in records or docu­ments, power regarding discovery, evidence, etc, power to call for infor­ mation, effect of transfer of authorities on pending proceedings, compu­ tation of period of limitation, service of notice, publication of informa­ tion respecting assessees, disclosure of information respecting assessees, return of gifts, etc, not to be invalid on certain grounds, bar of suits in civil courts, appearance before gift-tax authorities by authorised repre­sentative appearance by registered valuer in certain matters, agreement for avoidance or relief of double taxation with respect to gift tax, round­ing off of taxable gifts, and rounding off of tax, etc these provisions are similar to those, in the repealed gift-tax act, 1958clause 63 makes the provision authorising the central board of direct taxes to make rules for carrying out the purposes of the'actclause 64 provides for the repealing of the gift-tax act, 1958clause 65 empowers the central government to issue any order so as to remove any difficulty that may arise in giving effect to'the provi­ sions of this act these orders are required to be published in the official gazette and will be laid before each house of parliament how­ever, no order shall be made after the 31st day of march, 1994, financial memorandum,  create gift-tax authorities for the p      n nf the bill seeks to create so­cialise ? of the "                              actclause 7 ol we w                                               actposes of the admimstra ion                                                                                       ptoposed legislation will9 the posts of gift-tax authorities under ^                                            j t-tax authorities under, the gift-tax a ct, 1958lroro are consolidated fun ^ ^d ltu a"   "  m  oj the bill win no, involve any other expenditure drawn memorandum regarding delegated legislationclause 63 of the bill authorises the central board of direct taxes to make rules with respect to matters like the manner in which the order? relating to instruction to subordinate authorities shall be published antr circulated for general information, the form in which returns may be made under various provisions of the act, the form in which appeals should be filed, the form in which a memorandum of cross objections under the act shall be made and the form in which notices of demand should be issued2 clause 65 of the bill relates to power to remove difficulties the provisions of the said clause empower the central government to make orders for removing any difficulty which may arise in giving effect to the provisions of the proposed legislation it is also being provided that no such order shall be made after the 31st day of march, 1b94 and every such order shall be published in the official gazette and laid before each house of parliament3 the matters in respect of which the said rules or orders may be made are matters of procedure and administrative detail, and it is not practicable to provide them in the proposed legislation itself| 4 the delegation of legislative power is,    | therefore,    | of    | a    ||-----------------------------------------------|---------------|-------|------||                                               |               |       |      || raster                                       |               |     | •-   | iiok sabha a billto p ^ id e for the levy of gift-tax<pr°l  mmhu b™, minister of pirnnc,)