Statutory tax authorities lack jurisdiction to decide constitutional validity challenges to charging provisions under the taxing Act.

A statutory tax authority cannot decide the constitutional validity of the charging provision it administers, because its jurisdiction is confined to matters arising under the taxing Act itself. A vires challenge to the Gift-tax Act, 1958 therefore could not be entertained by the Gift-tax Officer, the Appellate Assistant Commissioner, or the Tribunal, and it could not be carried to the High Court through a reference from that statutory process. The reference was answered in favour of the Revenue on that jurisdictional issue, and the remaining question was left unanswered.

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Issues: Whether the Tribunal was competent to entertain and decide a challenge to the constitutional validity of the Gift-tax Act, 1958.

Analysis: The authority under the taxing statute is confined to deciding matters arising within its statutory jurisdiction. A plea that the charging provisions are ultra vires or unconstitutional does not fall within that jurisdiction. Although the Appellate Tribunal was constituted under the Income-tax Act, its appellate power under the Gift-tax Act remained confined to objections against orders passed under that Act. Since the Gift-tax Officer and the Appellate Assistant Commissioner themselves could not entertain a vires challenge, the assessee could not raise that issue before the Tribunal, and the Tribunal could not refer it to the High Court.

Conclusion: The Tribunal was not competent to entertain or decide the vires objection. The answer to the first question is in the negative and in favour of the Revenue.

Final Conclusion: The constitutional challenge to the taxing provisions could not be examined by the statutory gift-tax authorities or the Tribunal, and the reference was answered accordingly, leaving the second question unanswered.

Ratio Decidendi: A statutory tax authority cannot adjudicate upon the constitutional validity of the taxing provision that it is empowered to administer, and a question beyond the authority's jurisdiction cannot be raised in appeal or reference from its decision.

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