The power to impose a tax on land and building would not include the power to impose tax on gifts on land and building.

H.R.Khanna, J.

1. Shrimati Gaindi Petitioner by means of this petition under Art. 226 of the Constitution of India seeks to challenge the vires of the Gift-tax Act No. 18 of 1958 (hereinafter referred to as the Act).

2. According to the allegations of the petitioner she made a gift of agricultural land measuring 1335 Bighas and 11 biswas situated in village Muana, District Karnal in favour of her relatives as per registered gift deed dated the 14th April, 1959. A notice dated 19th December 1960 was received by the petitioner from the Gift-tax Officer Karnal for filing of return of the gifts made by her under section 13(2) of the Act. The petitioner submitted a return giving the necessary details of the gift. Various dates thereafter were given to the petitioner for giving proof of the petitioner on 31st August 1961 from the Gift tax Officer with respect tot he return filed by her. The case of the petitioner is that the Gift tax Officer had no jurisdiction to issue notices under Ss. 13(2) and 15(2) of the Act and the above-mentioned notices are illegal ultra vires and without jurisdiction. It is asserted that the Parliament had no power to legislate with respect to agricultural land and it is only the state legislature which is empowered to make a law with respect to tax on agricultural land.

3. The petition has been resisted by the Union of India and the Gift-tax Officer who have been imploded as respondents, and it is averred on their behalf that the impugned notices are legal and inter vires. According further to the respondents the Parliament had the power to enact the Act by virtue of the residuary powers if taxation mentioned in Article 248(2) and Entry 97 in list I of the Seventh Schedule to the Constitution.

4. Before dealing with the respective contention advanced before us it would be useful to refer to the relevant provision of the Act. Section 2 contains the definitions clauses and according to clause (xii)gift means the transfer by on person to another of any existing movable or immovable property made voluntarily and without consideration for money or moneys worth and includes the transfer of any property deemed to be a gift under S. 4. Section 3 contains the charging provisions and enacts the subject to the other provision contained in the Act there shall be charged for every financial year commencing on and from the 1st day of April 1958 a gift-tax in respect of gifts made by a person during the previous year (other than gifts made before the 1st day of April 1957)at the rates specified in the Schedule. The effect of S. 4 is to include certain types of transfers within the definition of gift.

Section 13 requires every person, who has made a taxable gift during the previous year, to furnish to the Gift-tax Officer a return in the prescribed form while sub-section (2) of that section gives a power to the Gift-tax Officer to serve a notice upon such person requiring him to furnish the return within the prescribed time. Section 15 deals with the assessment of gift-tax while S. 19 makes provisions for the payment of the gift-tax by the legal representatives of a person from his estate in case he dies before the payment of such tax. Section 29 enacts that gift-tax shall be payable by the donor but where in the opinion of the Gift tax Officer it cannot be recovered form the donor it may be recovered from the done. Section 30 makes the gift-tax to be a charge on the property gifted.

5. Mr. Mittal learned counsel for the petitioner has at the out-set made a feeble attempt to challenge the vires of the Act by relying on Entry No. 18 of list II of the Seventh Schedule to the Constitution of India according to which it is the State legislature which is competent to make laws with respect to the following subject:

"Land that is to say rights in or over land tenures including the relation of landlord and tenant and the collection of rents; transfer and alienation of agricultural land; land improvement and agricultural