Gift-tax Act,1958
Act No : 18
Section :
Penalty for failure to furnish returns, to comply with notices andconcealment of gifts, etc.
1[17.Penalty for failure to furnish returns, to comply with notices and concealment of gifts, etc. (1) If the Gift-tax Officer, Appellate Assistant Com missioner, 5[Commissioner (Appeals),] Commissioner or Appellate Tribunal, in the course of any proceedings under this Act, is satisfied that any person- (a) has without reasonable cause failed to furnish the return required to be furnished under sub-section (1) of section 13 or by notice given under sub-section (2) of section 13 or section 16 or has, without reasonable cause, failed to furnish it within the time allowed and in the manner required by subsection (1) of section 13 or by such notice, as the case may be; or (b) has without reasonable cause failed to comply with a notice under subsection (2) or sub-section (4) of section 15 ; or (c) has concealed the particulars of any gift or deliberately furnished inaccurate particulars thereof, he or it may, by order in writing, direct that such person shall pay by way of penalty- 2[(i) in the cases referred to in clause (,a), in addition to the amount of the gift-tax, if any, payable by him, a, sum equal to two, per cent. of the assessed tax for every month during which the default continued, 4*** Explanation.-In this clause, "assessed tax" means the gift- tax chargeable under the provisions of this Act as reduced by the amount, if any, for which credit is allowed under section 18.] (ii) in the cases referred to in clause (b), in addition to the amount of gift-tax payable by him, a sum which shall not be less than ten per cent. but which shall not exceed fifty per cent. of the amount of the tax, if any, which would. have been avoided if the return made by such person had been accepted as correct; ---------------------------------------------------------------------- 1 Subs. by Act 53 of 1962 s. 14, for s. 17 (w.e.f. 1-4-1963) 2 Subs. by Act 26 of 1974, s. 18 (w.e.f. 1-4-1963) 3 Ins. by Act 41 of 1975, s. 112 (w.e.f. 1-10-75) 4 Omitted by S. 113, ibid. (w.e.f. 1-4-76) 5 Ins. by Act 29 of 1977, s. 39 & Sch. V (w.e.f. 10.7.1978) ---------------------------------------------------------------------- 880 (iii) in the cases referred to in clause (c) 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. (2) No order imposing a penalty under sub-section (1) shall be made unless the assessee has been heard or has been given a reasonable opportunity of being heard. (3) Notwithstanding anything contained in clause (iii) of sub-, section (1), if in a case falling under clause (c) of that sub- section, the minimum penalty impossible exceeds a sum of rupees one thousand, 3[the Gift-tax Officer shall not make any order for payment, by way of penalty, without the previous approval of the Inspecting Assistant Commissioner] (4) An Appellate Assistant Commissioner, 6[a Commissioner (Appeals), a Commissioner or the Appellate Tribunal] on making an order under this section imposing penalty, shall forthwith send a copy of the same to the Gift-tax Officer.] 4[17A.Penalty for failure to answer questions, sign statements, etc. (1) If a person,-- (a) being legally bound to state the truth of any matter touching the subject of his assessment, refuses to answer any question demanded of him by a Gift-tax Officer or an Appellate Assistant Commissioner or an Inspecting Assistant Commissioner 6[or a Commissioner (Appeals)] or a Commissioner in the exercise of his powers under this Act, or (b) refuses to sign any statement made by him in the course of any proceeding under this Act which a Gift-tax Officer or an Appellate Assistant Commissioner or an Inspecting Assistant Commissioner 6[or a Commissioner (Appeals)] or a Commissioner may legally require him to sign, he shall pay, by way of penalty, a sum which may extend to one thousand rupees. (2)If a person, without reasonable cause or excuse, fails to furnish within the time specified any statement or information which such person is bound to furnish to the Gift-tax Officer under section 37, he shall pay, by way of penalty, a sum which may extend to ten rupees for every day during which the failure continues. ( 3) No order shall be made under this section except by an Appellate Assistant Commissioner or an Inspecting Assistant Commissioner or 6[or a commissioner (Appeals)] or a Commissioner , and where a contravention, failure or default for which any penalty is impossible under this section occurs in the course of any proceeding before a Gift-tax Officer, the Gift-tax Officer shall refer the case to the Inspecting Assistant Commissioner for passing such orders as he deems fit. (4) No order under this section shall be passed by any officer, referred to in sub-section (3) unless the person on whom the penalty is proposed to be imposed is given an opportunity of being heard in the matter by such officer.]
Read All Comments
