Amendment status not verified — confirm the current text below against the official source.
Liability in case of discontinued firm or association of persons. — (1) Where a firm or association of persons liable to pay gift-tax has been discontinued or dissolved, the 1[Assessing Officer] shall determine the gift-tax payable by the firm or association of persons as such as if no such discontinuance or dissolution had taken place. (2) If the 1[Assessing Officer], the 2[Deputy Commissioner (Appeals)], 3[the Commissioner (Appeals)] or the Appellate Tribunal in the course of any proceeding under this Act in respect of any such firm or other association of persons as is referred to in sub-section (1) is satisfied that the firm or association is guilty of any of the acts specified in clause (a) or clause (b) or clause (c) of sub-section (1) of section 17, he or it may impose or direct the imposition of a penalty in accordance with the provisions of that section. (3) Every person who was at the time of such discontinuance or dissolution a partner of the firm or a member of the association, as the case may be, shall be jointly and severally liable for the amount of tax or penalty payable, and all the provisions of Chapter VII, so far as may be, shall apply to any such assessment or imposition of penalty. 4[21A. Assessment of donee when the donor cannot be found. — (1) Where an 1[Assessing Officer] after using all due and reasonable diligence cannot find the donor who had made any taxable gifts, for the purpose of service of notice under sub-section (2) of section 13 or under section 16, the 1[Assessing Officer] may make an assessment of the value of all such taxable gifts made by him and determine the gift-tax payable by him and for this purpose may, by the issue of the appropriate notice which would have had to be served upon the donor, require from the donee or donees any accounts, documents or other evidence which might, under the provisions of section 15, have been required from the donor. (2) Where any assessment in respect of the taxable gifts made by the donor has been made under sub- section (1), every donee shall be liable for the gift-tax so assessed : Provided that where the donees are more than one, they shall be jointly and severally liable for the amount of the gift-tax so assessed : Provided further that the amount of the gift-tax which may be recovered from each donee shall not exceed the value of the gift made to him as on the date of the gift. (3) The provisions of sections 13, 14 and 16 shall apply to a donee as they apply to any person referred to in those sections.] CHAPTER VI APPEALS, REVISIONS AND REFERENCES