Gift Tax - Notice u/s16 to legal heirs. - Income Tax - 1574/CBDT

INSTRUCTION NO. 1574/CBDT Dated: September 18, 1984 In one of the draft paras for the Audit Report 1980-81 the C AG has pointed out that in a gift tax case, notice u/s 16 was issued after the death of the assessee and the assessment framed on only one of the sons of the deceased, as legal heir when there were other legal heirs inheriting the property was not valid. 2. In this connection attention is also invited to the Supreme Court's order dated 7th August 1970 in the civil appeals No's. 529 to 538 of 1967 titled as Income-tax officer, Gudur and other Vs. Maramreddy Sulochanamma where in the Supreme Court remanded the case to the High Court to consider, among other aspects, whether the I.T.O. had made any bonafide enquiry before issuing notices. 3. The Board desire that, in respect of any proceeding pertaining to a deceased assessee, diligent enquiries should be carried out to ascertain all the legal heirs of the deceased so that notices are issued to all the legal heirs. 4. The above instructions should be brought to the notice of all officers working in your charge.