AIR 1963 CALCUTTA 127

Calcutta High Court

Hon'ble Judge(s): Binayak Nath Banerjee , J

Gift Tax Act (18 of 1958) , S.6, S.29— Validity - Provisions put unreasonable restriction on donee's right to acquire and hold property - Violate Art.19(1)(f) of the Constitution. Sections 6 and 29 of the Gift Tax Act put an unreasonable restriction on the donee's right to acquire and hold property guaranteed under Art. 19 (1) (f) of the Constitution and are invalid.(Para 23) On a consideration of Ss. 2 (iii), 13, 19, 20, 21 and 31 of the Act the position of the donee in the matter of assessment of Gift tax is that (i) no notice is required to be served on him (ii) there is no procedure by which a donee can obtain rectification of mistakes committed by taxing authorities (iii) there is no procedure prescribed for obtaining the opinion of a superior Civil Court on questions of law, by application for reference or otherwise at the instance of the donee and (iv) nor has he any right of appeal. Therefore, the tax has been made recoverable from the donee under section 29 of the Act, without giving him any opportunity to contest the correctness of the demand and that makes the demand an unreasonable restriction on the donee's right to hold property guaranteed by Article 19(1)(f) of the Constitution.(Para 17) .....