Jagadisan, J:-

The question raised is whether the Gift-tax Act, 1958 (Act XVIII of 1958) enacted by the Parliament is within its legislative competence in so far as the Act purports to levy a tax on gifts of agricultural lands.

The petitioner executed a settlement deed on 8th April, 1957, in favour of his niece, Manonmani Ammal, and thereby gifted an extent of 20 acres, 28 cents of agricultural lands. He also made a gift under an instrument dated 7th April, 1957, of an extent of 114 acres, 38 cents. of agricultural lands in favour of his two sisters Gajalakshmi and Savitri. The Gift-tax Officer, Cuddalore, called upon the petitioner by notice dated 4th December, 1958, to furnish a return in the prescribed form of all gifts made by him for the year ending 31st March, 1958. The Officer exercised his jurisdiction under the provisions of the Gift-tax Act, 1958. The petitioner submitted a return and disclosed the two settlement deeds referred to above. By order dated 7th April, 1960, the Officer assessed the petitioner to gift-tax of Rs. 8,520 valuing the agricultural lands at Rs. 1,54,000. On such assessment the petitioner was called upon to pay the tax on or before 15th May, 196