35. PROSECUTION. –
(1) If any person fails without reasonable cause, –
(a) to furnish in time any return of gifts under this Act;
(b) to produce, cause to be produced, on or before the date mentioned in any notice under 1[***] sub-section (4) of section 15, such accounts, records and documents as are referred to in the notice;
he shall, on conviction before a magistrate, be punishable with fine which may extend to rupees ten for every day during which the default continues.
(2) If a person makes a statement in a verification in any return of gifts furnished under this Act or in a verification mentioned in section 22, 23 or 25 which is false, and which he either knows or believes to be false, or does not believe to be true, he shall, on conviction before a magistrate, be punishable with simple imprisonment which may extend to one year, or with fine which may extend to rupees one thousand, or with both.
3[(2A) If a person abets or induces in any manner another person to make and deliver an account, statement or declaration relating to any gifts chargeable to tax which is false and which he either knows to be false or does not believe to be true, he shall, on conviction before a magistrate, be punishable with simple imprisonment which may extend to six months or with fine which may extend to one thousand rupees or with both.]
4[(3) A person shall not be proceeded against for an offence under this Act except with the previous sanction of the Commissioner or Commissioner (Appeals):
Provided that the Chief Commissioner or, as the case may be, Director General may issue such instructions or directions to the aforesaid Gift Tax authorites as he may deem fit for institution of proceedings under this sub-section.
(4) Any such offence may, either before or after the institution of proceedings, be compounded by the Chief Commissioner or Director-General.]
5[6[Explanation 1].—For the purposes of this section, “Magistrate” means a Presidency magistrate or a Magistrate of the first class.]
7[Explanation 2.—For the removal of doubts, it is hereby declared that the powers of the Board to issue orders, instructions or directions under this Act shall include and shall be deemed always to have included the power to issue instructions or directions (including instructions or directions to obtain the previous approval of the Board) to other Gift Tax authorities for the proper composition of offences under this section.]
1. The words “sub-section (2) or” omitted by Act 41 of 1975, sec. 119(i) (w.e.f. 1-4-1976).
2. Clause (c) omitted by Act 41 of 1975, sec. 119(ii) (w.e.f. 11-4-1976).
3. Ins. by Act 53 of 1962, sec. 27 (ii) (w.e.f. 1-4-1963).
4. Subs. by Act 49 of 1991, sec. 90(a) (w.e.f. 1-10-1991).
5. Subs. by Act 53 of 1962, sec. 27(ii) (w.e.f. 1-4-1963).
6. Explanation re-numbered as explanation 1 by Act 49 of 1991, sec. 90(b) (w.r.e.f. 1-4-1963).
7. Ins. by Act 49 of 1991, sec. 90(b) (w.r.e.f. 1-4-1958).