Prevention of smuggling of, and fradulent dealings in antiquities. - Income Tax - 994/CBDT

INSTRUCTION NO. 994/CBDT Dated : July 31, /1976 Section(s) Referred: 132 ,132B Statute: Income - Tax Act, 1961 The Antiquities and Art Treasures Act, 1972 (Act No. 52 of 1972) has come into force from the 5th of April, 1976. It repeals the Antiquities (Export Control) Act, 1947. 2. The Antiquities and Art Treasures Act, 1972 regulates the export trade in antiquities and art treasures, provides for the prevention of smuggling of, and fradulent dealings in antiquities and for compulsory acquisition of antiquities and art treasures, wherever considered for preservation in public places, and connected matters. Sub-clauses (a) and (b) of Clause (1) of Section 2 define "antiquity" and "art treasure" as follows:- (a) "antiquity" includes- (I) (i) any coin, sculpture, painting, epigraph or other work of art or craftsmanship; (ii) any article, object or thing detached from a building or cave; (iii) any article, object or thing illustrative of science art, crafts, literature, religion, customs, morals or politics in bygone ages; (iv) any article, object or thing of historical interest; (v) any article, object or thing declared by the Central Government, by notification in the Official Gazette, to be an antiquity for the purposes of this Act; which has been in existence for not less than one hundred years; and (II) any manuscript, record or other document which is of scientific, historical, literary or aesthetic value and which has been in existence for not less than seventy-five years; (b) "art treasure" means any human work of art, not being an antiquity, declared by the Central Government by notification in the Official Gazette to be an art treasure for the purposes of this Act having regard to its artistic or aesthetic value; Provided that no declaration under this clause shall be made in respect of any such work of art so long as the author thereof is alive. Any person who owns, controls or is in possession of an antiquity falling in categories notified in the Gazette of India from time to time is required to register the same with a registering officer appointed under the Act and obtain a certificate of registration (Section 14) and to intimate any subsequent transfer of its ownership, control or possession (Section 17). Further, any person desirous of trading in antiquities has also to obtain a licence from a licensing officer (Section 8). For this purpose, he has to make an application in the prescribed form and has to maintain prescribed record and photographs including, inter alia, a register showing particulars identifying the objects, their registration numbers and the purchase and sale transactions etc. if the Central Government is of opinion that it is desirable to preserve any antiquity or art treasure in a public place, the Government is empowered to order its compulsory acquisition on payment of compensation (Section 19 and 20). 3. In appropriate cases, the Government may consider acquiring an article seized during the course of a search and seizure operation conducted by the Income-tax Department, if it is found to be an "antiquity" or worthy of declaration as an "art treasure". Therefore, if as a result of such operation, an article is placed under a prohibitory order/seized, which, prima facie, appears to be an antiquity or of such an artistic or aesthetic value as worthy of being declared an "art treasure" in terms of section 2 of the Antiquities and Art Treasures Act. 1972, it should be immediately brought to the notice of the Superintending Archaeologist of the area (list of Superintending Archaeologists annexed) and his advice sought whether the article is an antiquity or worthy of declaration as an art treasure. Thereafter, a report should be made (in duplicate) as early as possible to the Director of Inspection (Inv.) giving full particulars of the article, the advice received from the Superintending Archaeologist, alongwith its approximate market value as given by the latter and/or a valuer. The article should not be released to the assessee or otherwise disposed of till the receipt of the Director of Inspection's Instructions. 4. It may be carefully noted that in view of the provisions of the Antiquities and Art Treasures Act, the Income-tax Authorities cannot undertake any sale/auction of antiquities. When an antiquity or art treasure is compulsorily acquired by the Government, the compensation amount will be dealt with in accordance with the provisions of section 132/132B of the Income-tax Act. If the Director General, Archaeological Survey of India advises that the Government are not interested in acquiring an antiquity, it will have to be sold, where necessary, through a licensed dealer.