841/CBDT. - Income Tax - 841/CBDT

INSTRUCTION NO. 841/CBDT Dated : June 9, 1975 Section(s) Referred: 23(3) of Wealth Tax Act , 22(3) of Gift Tax Act , 62(3) of Estate Duty Act Statute: Wealth Tax Act, 1957 In the case of Shri Kasturbhai Lalbhai, HUF vs. Commissioner of Income-tax, Gujarat-II (Wealth-tax Reference Nos. 9 to 14 of 1970), the Gujarat High Court held that the Wealth-tax Officer had no right to be heard by the Appellate Assistant Commissioner, as a matter of course, and the want of opportunity of hearing did not render the order of the Appellate Assistant Commissioner bad in law. One of the reasons given in the order is that while section 250(1) of the Income-tax Act 1961, specifically lays down that a notice of hearing has to be given by the Appellate Assistant Commissioner to the Income-tax Officer a similar provision has not been incorporated in section 23(3) of the Wealth-tax Act, 1957. The Board have not accepted the decision of the High Court and petition for leave to appeal to Supreme Court has been filed. 2. The Board are advised that proceedings before the Appellate Assistant Commissioner are quasi-judicial and since the interests of Revenue are also affected, it is implicit that in proceedings of this nature, the Wealth-tax Officer has to be given an opportunity of being heard by the Appellate Assistant Commissioner. You may accordingly request the Appellate Asst. Commissioners working in your charge to give an opportunity of being heard to the Wealth-tax Officer. 3. It is also suggested that when the Wealth-tax Officers furnish a report to the Appellate Asst. Commissioner in Form No. I.T.N.S. 51, they may in cases where they desire to be heard, make a request in this behalf, so that, while fixing the appeal for hearing, the Appellate Asst. Commissioner may give notice to the Wealth-tax Officer as well. 4. In view of the position that the provisions in section 22(3) of the Gift-tax Act, 1958 and section 62(3) of the Estate Duty Act, 1953 are similar to section 23(3) of the Wealth-tax Act 1957, the above instructions will also apply to appeals before the Appellate Asst. Commissioner/Appellate Controller under the Gift-tax Act/Estate Duty Act. 5. All the Wealth-tax Officers, Gift-tax Officers and Asst. Controllers of Estate Duty working in your charge may be instructed accordingly.