Broad right of appeal under Gift-tax law can include a donee affected by recovery proceedings

Section 22 of the Gift-tax Act is construed broadly because it confers an appeal on "any person," unlike other provisions in the appellate chapter that are confined to assessees. On that reading, a donee affected by recovery proceedings under section 29 may be treated as a person entitled to challenge the recovery action, especially where no other statutory forum is available to test the exercise of that power. The stated ratio is that an appellate remedy expressed in wide terms should include a non-assessee directly prejudiced by recovery proceedings unless the statute clearly limits the right.

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Issues: Whether a donee against whom recovery proceedings are initiated under section 29 of the Gift-tax Act, 1958 can maintain an appeal under section 22 of the Act.

Analysis: The appellate scheme of Chapter VI of the Gift-tax Act shows a deliberate distinction between provisions conferring a right on "any person" and those limiting relief to "assessees". Section 22(1) uses the broader expression "any person", unlike sections 23 to 25, which are confined to assessees. The expression in section 22(1) must therefore receive a liberal construction so as to include a person adversely affected by recovery action under section 29, especially because no other statutory forum is provided to challenge the proper exercise of the recovery power against a donee.

Conclusion: The donee was entitled to maintain the appeal under section 22, and the reference was answered in favour of the assessee and against the Revenue.

Ratio Decidendi: Where a taxing statute confers a right of appeal on "any person" and the recovery provisions adversely affect a non-assessee, the appellate expression must be construed broadly to include that affected person unless the statute clearly restricts the remedy.

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