Retrospective definition of "record" expands revisional jurisdiction under gift-tax law and requires fresh reconsideration of revision

The inserted Explanation to section 24(2) of the Gift-tax Act, 1958 was treated as retrospective and as defining "record" to include all material relating to the proceedings available when the Commissioner exercises revisional jurisdiction. On that construction, the Commissioner may examine subsequent valuation material if it forms part of the record at the time of revision. The High Court noted that the Tribunal had not considered the matter with the benefit of this Explanation and directed reconsideration of the revision issue afresh in light of the expanded meaning of "record" and the parties' contentions.

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Issues: Whether, on the facts and in the circumstances of the case, the Commissioner of Gift-tax had jurisdiction under section 24(2) of the Gift-tax Act, 1958, as explained by the inserted Explanation, to revise the assessment on the basis of material available when the revisional power was exercised.

Analysis: The Explanation inserted to section 24(2) by the Finance Act, 1988 was intended to define the expression "record" and was treated as having retrospective effect. The expression was construed to include all records relating to proceedings under the Act available at the time of examination by the Commissioner. The Tribunal had decided the matter without the benefit of this Explanation and without considering whether the subsequent valuation material could form part of the record for the purpose of revision under section 24(2).

Conclusion: The question was answered in the negative and in favour of the Revenue. The Tribunal was directed to reconsider the revision issue afresh in the light of the Explanation and all available contentions.

Ratio Decidendi: An Explanation inserted to define the scope of "record" in a revisional provision may operate retrospectively and govern the Commissioner's jurisdiction on the basis of the material available at the time of examination.

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