Section 9 l Instructions to Subordinate Authorities
Circular No. 602 was issued by the Central Board of Direct Taxes on 5 June 1991. Its subject is Section 9 l Instructions to Subordinate Authorities.
This is an extension of time. It moves a date that the Act or the Rules otherwise fix, and it does so only for the compliance and the period it names — not for anything else that happens to fall due at the same time.
Communicates the Board's order of 30th May 1991 under section 9(2)(a) of the Gift-tax Act, 1958, which pushes the due date for the return of gifts for assessment year 1990-91 from 30th June 1990 to 30th June 1991, but only for assessees who made a gift between 20th March 1990 and 31st March 1990, and waives interest under section 16B for the delay up to 30th June 1991. Where such an assessee had already filed a return for that year covering gifts made between 1st April 1989 and 19th March 1990 but had left out the gifts of 20th to 31st March 1990, penalty under section 17(1)(c) for that non-disclosure is waived if he files a revised return disclosing all the gifts by 30th June 1991. Where an assessment under section 15(3) has already been made on the original return, the waiver comes instead by informing the Assessing Officer in writing of the omitted gifts by 30th June 1991. Assessing Officers are told to act promptly on such returns or information and bring to tax all gifts made between 1st April 1989 and 31st March 1990.
To remove hardship from the uncertainty about gifts made between 20th and 31st March 1990, caused by the Gift-tax Bill, 1990, which lapsed on the dissolution of the Lok Sabha on 13th March 1990; a Press Note to the same effect appeared on 1st and 3rd June 1991.
SECTION 9 l INSTRUCTIONS TO SUBORDINATE AUTHORITIES
1458. Instruction to subordinate authorities - Extension of due date for filing the return of gifts for assessment year 1990-91 in certain cases
1. Reference is invited to Board’s order under section 9(2)(a) of the Gift-tax Act, 1958 (F. No. 143/6/91-TPL dated 30-5-1991) whereby the due date for filing of return of gifts for the assessment year 1990-91 has been extended from 30-6-1990 to 30-6-1991 in the case of those assessees who had made any gift or gifts during the period 20th March, 1990 to 31st March, 1990. Interest chargeable under section 16B of the Act for late filing of the return of gifts has also been waived in such cases up to 30th June, 1991.
2.1 Further, in case any such assessee had already filed the return of gifts for the assessment year 1990-91 in respect of any gift or gifts made by him during the period 1-4-1989 to 19-3-1990, wherein the gift or gifts made during the period 20-3-1990 to 31-3-1990 had not been disclosed, the levy of penalty under section 17(1)(c ) of the Act for not disclosing such gifts in that return has also been waived, if such assessee files a revised return by 30-6-1991 disclosing all the gifts in that revised return.
2.2 However, where, in such a case, an assessment under section 15(3) of the Act has already been completed on the basis of the original return, the levy of penalty under section 17(1)(c) shall be waived if the assessee informs the Assessing Officer in writing by 30-6-1991 the particulars of the gift or gifts made by him during the period 20-3-1990 to 31-3-1990, which had not been disclosed in the original return filed by him.
3. The abovementioned order under section 9(2)(a) of the Act has been passed to remove any hardship in such cases resulting from the uncertainty that prevailed regarding the treatment of gifts made during the period 20-3-1990 to 31-3-1990 on account of the provisions of the Gift-tax Bill, 1990, which has since lapsed because of the dissolution of the Lok Sabha on 13-3-1990.
4. A Press Note has also been issued clarifying the position, which appeared in the newspapers on 1st June, 1991 and 3rd June, 1991. It has also been clarified in the Press Note that the date of filing the return of gifts for the assessment year 1991-92 will remain 30-6-1991 in all cases and the return of gifts for this assessment year has to be filed under the provisions of the existing Gift-tax Act, 1958. A copy of the Press Note is enclosed.
5.1 Assessees falling under the categories mentioned in paragraphs 2.1 and 2.2 above should file the revised returns or the necessary information in writing before the Assessing Officer, as the case may be, for the assessment year 1990-91 on or before 30-6-1991, so that they can avoid the penal consequences of section 17(1)(c ) of the Act.
5.2 Where any such revised returns or information in writing is received from the assessee, the Assessing Officer must take prompt action to bring to tax all the gifts made during the period 1-4-1989 to 31-3-1990 relevant for the assessment year 1990-91.
PRESS NOTE
The Government had earlier issued a Press Note, which appeared in the newspapers on 21st/22nd March, 1991, clarifying that consequent upon the lapse of the Gift-tax Bill, 1990 because of the dissolution of the Lok Sabha, the provisions of the existing Gift-tax Act, 1958 continue to apply to all gifts made. Taxpayers were advised to immediately file the returns of gifts for the assessment year 1990-91 under the Gift-tax Act, 1958. They were also informed that for providing necessary relief in cases where returns of gift for the assessment year 1990-91 had been delayed for bona fide reasons, the Central Board of Direct Taxes will suitably extend the date of filing the returns of gifts.
2. Accordingly, the Central Board of Direct Taxes has passed an order dated the 30th May, 1991 under section 9(2)(a) of the Gift-tax Act, 1958 to the following effect :
(i) In the cases of assessees who had made any gift or gifts chargeable to gift-tax during the period 20th March, 1990 to 31st March, 1990, the due date for furnishing the returns of gifts for the assessment year 1990-91 has been extended from 30th June, 1990 to 30th June, 1991.
(ii) Interest chargeable under section 16B of the Act for delay in furnishing of the returns in such cases has also been waived up to 30th June, 1991.
(iii) In cases of the type mentioned at (i) above, if any assessee had also made any gift or gifts during the period 1st April, 1989 to 19th March, 1990, in respect of which he had already filed a return of gifts for the assessment year 1990-91, the levy of penalty under section 17(1)(c) of the Act for not disclosing in that return the gift or gifts made during the period 20th March, 1990 to 31st March, 1990 has also been waived, if such assessee files a revised return on or before 30th June, 1991 disclosing all the gifts.
However, if in such a case an assessment under section 15(3) of the Act has already been completed on the basis of the original return, the levy of penalty under section 17(1)(c) will be waived if the assessee informs the Assessing Officer in writing on or before 30th June, 1991, all the particulars of gift or gifts made by him during the period 20th March, 1990 to 31st March, 1990 which he had not disclosed in original return filed by him.
3. Therefore, assessees falling in the categories mentioned in the preceding para must file returns or revised returns or the necessary information, as the case may be, for the assessment year 1990-91 on or before 30th June, 1991 to avoid any penal consequences.
4. It is further clarified that the due date for furnishing of the returns of gifts for the assessment year 1991-92, which is 30th June, 1991, remains the same and these returns are also to be filed under the existing Gift-tax Act, 1958.
Circular : No. 602, dated 5-6-1991.
In an old gift-tax penalty proceeding under section 17(1)(c) or an interest levy under section 16B for assessment year 1990-91, and in reconstructing why a revised gift return was filed in June 1991.
Source: the Income Tax Department’s own published text — its page for this instrument.