Section 175 - Insertion of new Chapter IVA - Direct Tax Laws (Amendment) Act, 1987

175. Insertion of new Chapter IVA. In the Gift-tax Act, after section 18A, the following Chapter shall be inserted, namely: - CHAPTER IVA CHARGE OF ADDITIONAL GIFT-TAX IN CERTAIN CASES 18B. Additional gift-tax. (1) Where, in the case of any person, the value of taxable gifts determined in the regular assessment for any assessment year (hereafter in this section referred to as assessed taxable gifts) exceeds the value of taxable gifts declared in the return of taxable gifts furnished by such person for that assessment year (hereafter in this section referred to as returned taxable gifts) by any amount, the Assessing Officer shall make an order in writing that such person shall, apart from the sum determined as payable by him on the basis of the assessment under section 15, be liable to pay, by way of additional gift-tax, in respect of the said assessment year, a sum calculated on such excess amount at the rate of twenty per cent. (2) For the purposes of sub-section (1),- (a) where such person has furnished two or more returns of taxable gifts for the same assessment year, the value of taxable gifts declared in the return furnished last before the service of a notice under sub-section (2) of section 15 on such person shall be treated as the returned taxable gifts; (b) where such person fails to furnish the return of taxable gifts in respect of any assessment year and the assessment for that year is made under sub-section (5) of section 15, the returned taxable gifts shall be taken to be nil; (c) where such person fails to furnish a return of taxable gifts for any assessment year under section 13 or section 14, but furnishes such return after he is served with a notice under section 16, the returned taxable gifts shall be taken to be nil. (3) Where, as a result of an order under section 16 or section 22 or section 23 or section 24 or section 26 or section 28 or section 34, the amount on which the additional gift-tax is payable under sub-section (1) has been increased or reduced, as the case may be, the additional gift-tax shall be increased or reduced accordingly, and,- (i) in a case where the additional gift-tax 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 31 and the provisions of this Act shall apply accordingly; (ii) in a case where the additional gift-tax is reduced, the excess amount paid, if any, shall be refunded. (4) The Chief Commissioner or Commissioner may, in his discretion, whether on his own motion or otherwise, waive or reduce the amount of additional gift-tax payable under sub-section (1) by any person, if he is satisfied that the whole or, as the case may be, any part of the excess amount referred to in that sub-section is attributable to any amount added or disallowed in computing the assessed taxable gifts, as a result of the rejection of any explanation (by way of interpretation of any provision of this Act or otherwise) offered by such person, if such explanation is bona fide and all the facts relating to the same and material to the computation of the assessed taxable gifts have been disclosed by him: Provided that,- (i) where an appeal before the Deputy Commissioner (Appeals) or Commissioner (Appeals) or the Appellate Tribunal has also been filed by the assessee against the order of assessment, the petition for waiver or reduction of the amount of additional gift-tax can be filed by the assessee only after the decision on such appeal; (ii) the petition for waiver or reduction of the amount of additional gift-tax shall be accompanied by a fee of one hundred rupees. (5) The additional gift-tax payable under this section shall not be included in the amount of tax payable on the taxable gifts as determined on regular assessment, for the purposes of section 16B. .