762/CBDT. - Income Tax - 762/CBDT

Instruction No: 762/CBDT Date of Issue: 23/9/1974 Section(s) Referred: 15 ,29 Statute: Gift Tax Act, 1958 In the case of Kotha Manikyalu Vs.Gift Tax Officer, Circle-II, Kakinada (Writ Petition No.1109 of 1971 unreported) the Andhra Pradesh High Court has held that in the case where the donor is dead and the gift-tax is sought to be recovered from the donees u/s.29 of the Gift Tax Act, notices u/s 15(2) of the Gift Tax Act should be issued to the legal representatives and also to all the donees. The Board have accepted the decision. To avoid duplicity of proceedings, it is necessary that where the donor is dead, notices u/s 15(2) of the Gift Tax Act should be issued, not only to the legal representatives of the donor but also to the donees. In such proceedings it would be open to the donees to show, in presence of the legal representatives of the donor, that the tax could be recovered from the estate of the donor. The Board, therefore, desire that in a case where the donor is dead, notices u/s 15(2) of Gift Tax Act should be issued to the legal representatives of the donor as well as to all the donees. 2. This instruction may please be brought to the notice of all the officers working in the charge.