Non-disclosure of bond acquisition protects holders from inquiry, seizure and tax-accounting in assessment processes. The Act grants bond-holders a statutory non-disclosure privilege under section 3(1)(a) and bars inquiries based on acquisition under section 3(1)(b), subject to section 3(2) exceptions. Section 4 provides that subscription or acquisition shall not be taken into account for Income-tax, Wealth-tax and Gift-tax proceedings; officers must ignore claims that concealed income was invested in Bonds, cannot inventory or seize Bonds during searches or surveys, and must not accept Bonds in satisfaction of tax arrears.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Non-disclosure of bond acquisition protects holders from inquiry, seizure and tax-accounting in assessment processes.
The Act grants bond-holders a statutory non-disclosure privilege under section 3(1)(a) and bars inquiries based on acquisition under section 3(1)(b), subject to section 3(2) exceptions. Section 4 provides that subscription or acquisition shall not be taken into account for Income-tax, Wealth-tax and Gift-tax proceedings; officers must ignore claims that concealed income was invested in Bonds, cannot inventory or seize Bonds during searches or surveys, and must not accept Bonds in satisfaction of tax arrears.
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