Applicability of section 4(1)(a) of the Gift Tax Act. - Income Tax - 1056/CBDT

INSTRUCTION NO. 1056/CBDT Dated : May 4, 1977 Section(s) Referred: 4(1)(a) Statute: Gift Tax Act, 1958 Attention is invited to Instruction No.* 965 issued vide 340/22/76-GT, dated the 2nd July, 1976, on the above mentioned subject. In these instructions the ITOs have been required to examine the applicability of section 4(1)(a) of the Gift Tax Act also while considering the applicability of section 52 of the IT Act, 1961. 2. Section 52 of the IT Act can be invoked only with the previous approval of the IAC. The Board, therefore, desire that wherever proposals u/s 52 of the IT Act are received by the IACs and wherever approval is accorded to such proposals, the IACs should simultaneously issue directions to the ITO for initiating gift tax proceedings also.