Section 2. Quoted shares and debentures of companies

4[ 2. Quoted shares and debentures of companies. — The value of an equity share or a preference share in any company or a debenture of any company which is a quoted share or a quoted debenture shall be taken as the value quoted in respect of such share or debenture on the date on which the gift was made or where there is no such quotation on such date, the quotation on the date closest to such date and immediately preceding such date. Explanation. —The words and expressions used in this rule and rules 3 to 7 but not defined and defined in rule 2 of Schedule III to the Wealth-tax Act shall have the meanings respectively assigned to them in rule 2 of that Schedule. 12. The Second proviso omitted by s.162, ibid, (w.e.f. 1-4-1989). 13. Subs. by s. 161, ibid. , for "Gift-tax Officer" (w.e.f. 1-4-1988). (xxii) "property" includes any interest in property, movable or immovable; (xxiii) "taxable gifts" means gifts chargeable to gift-tax under this Act; 1[(xxiiia) territories to which this Act extends shall be deemed to include the Union territories of Dadra and Nagar Haveli, Goa, Daman and Diu, and Pondicherry— (a) as respects any period for the purposes of section 5; and (b) as respects any period included in the previous year, for the purposes of making any assessment for the assessment year commencing on the 1st day of April, 1963, or for any subsequent year;] (xxiv) "transfer of property" means any disposition, conveyance, assignment, settlement, delivery, payment or other alienation of property and, without limiting the generality of the foregoing, includes— (a) the creation of a trust in property; (b) the grant or creation of any lease, mortgage, charge, easement, licence, power, partnership or interest in property; (c) the exercise of a power of appointment[2] [(whether general, special or subject to any restrictions as to the persons in whose favour the appointment may be made)] of property vested in any person, not the owner of the property, to determine its disposition in favour of any person other than the donee of the power; and (d) any transaction entered into by any person with intent thereby to diminish directly or indirectly the value of his own property and to increase the value of the property of any other person; 3[(xxv) the expressions "Chief Commissioner", "Director General", "Commissioner", "Commissioner (Appeals)", "Director",[4] ["Additional Director of Income-tax", "Additional Commissioner of Income-tax", "Additional Commissioner of Income-tax (Appeals)", "[5] [Joint Director"]][6] ["Joint Commissioner"], "Deputy Commissioner (Appeals)",[7] ["Assistant Commissioner or Deputy Commissioner"], "Income-tax Officer", "Tax Recovery Officer" and "Inspector of Income-tax" shall have the meanings respectively assigned to them under section 2 of the Income-tax Act.] (viii) "donee" means any person who acquires any property under a gift, and, where a gift is made to a trustee for the benefit of another person, includes both the trustee and the beneficiary; (ix) "donor" means any person who makes a gift; (x) "executor" means an executor or administrator of the estate of a deceased person; 8[(xi) the expressions "firm", "partner" and "partnership" shall have the meanings respectively assigned to them under section 2 of the Income-tax Act;] (xii) "gift" means the transfer by one person to another of any existing movable or immovable property made voluntarily and without consideration in money or money's worth, and[9] [includes the transfer or conversion of any property referred to in section 4, deemed to be a gift under that section]. 10[ Explanation. —A transfer of any building or part thereof referred to in clause (iii), clause (iiia) or clause (iiib) of section 27 of the Income-tax Act by the person who is deemed under the said clause to be the owner thereof made voluntarily and without consideration in money or money's worth, shall be deemed to be a gift made by such person;] 11* * * * * 1. Subs. by Act 54 of 1963, s. 5 for "Central Board of Revenue constituted under the Central Board of Revenue Act, 1924" (w.e.f. 1-1-1964). 2. Ins. by Act 53 of 1962, s. 2 (w.e.f. 1-4-1963). 3. The words "not involving the carrying on of any activity for profit" omitted by Act 67 of 1984, s. 71 (w.e.f. 1-4-1984). 4. Clause (vi) omitted by Act 4 of 1988, s. 162 (w.e.f. 1-4-1988). 5. Clause (via) omitted by s. 162, ibid . (w.e.f. 1-4-1988). 6. Subs. by s. 162, ibid ., for clause (vii) (w.e.f. 1-4-1988). 7. Clause (viia) omitted by s. 162, ibid . (w.e.f. 1-4-1988). 8. Subs. by s. 162, ibid ., for clause (xi) (w.e.f. 1-4-1989). 9. Subs. by Act 32 of 1971, s. 37, for "includes the transfer of any property deemed to be a gift under section 4" (w.e.f. 1-4-1972). 10. Ins. by Act 11 of 1987, s. 90 (w.e.f. 1-4-1988). 11. Clause (xiii) omitted by Act 4 of 1988, s. 162 (w.e.f. 1-4-1989). 1[(xiv) "Income-tax Act" means the Income-tax Act, 1961 (43 of 1961);] 2 * * * * * 3* * * * * 4* * * * * 5[(xvib) "legal representative" has the meaning assigned to it in clause (11) of section 2 of the Code of Civil Procedure, 1908 (5 of 1908);] 6* * * * * (xviii) "person" includes a Hindu undivided family or a company or an association or a body of individuals or persons, whether incorporated or not; (xix) "prescribed" means prescribed by rules made under this Act; (xx) "previous year", in relation to any assessment year— (a) in the case of an assessee[7] [having no source of income, profits or gains or] having a source of income, profits or gains in respect of which there is no previous year under the Income-tax Act, means the twelve months ending on the 31st day of March immediately preceding the assessment year; source of income, profits or gains in respect of which there is no previous year under the 8* * * * * (c) in the case of any other assessee, means the previous year as defined in[9] [section 3] of the Income-tax Act if an assessment were to be made under that Act for that year : 10[Provided that where a person who has not been assessed under this Act for any assessment year makes a gift on a date which does not fall within a previous year as defined in sub-clause (a)[11] * or sub-clause (c), the previous year shall be the twelve months ending on the 31st day of March immediately preceding the assessment year; year makes a gift on a date which does not fall within a previous year as defined in [12] * * * * * ] (xxi) "principal officer", used with reference to a company or any association of persons, means— (a) the secretary and treasurer, manager, managing agent, managing director or agent of the company or association; or (b) any person connected with the management of the affairs of the company or association upon whom the[13] [Assessing Officer] has served a notice of his intention of treating him as the principal officer thereof; 1. Subs. by Act 53 of 1962, s. 2, for clause (xiv) (w.e.f. 1-4-1963). 2. Clause (xv) omitted by Act 4 of 1988, s. 162 (w.e.f. 1-4-1989). 3. Clause (xvi) omitted by, s. 162, ibid. (w.e.f. 1-4-1989). 4. Clause (xvia) omitted by, s. 162, ibid. (w.e.f. 1-4-1989). 5. Ins. by Act 53 of 1962, s. 2 (w.e.f. 1-4-1963). 6. Clause (xvii) omitted by Act 4 of 1988, s. 162 (w.e.f. 1-4-1989). 7. Ins. by Act 12 of 1959, s. 27 (w.e.f. 1-4-1959). 8. Sub-clause (b) omitted by Act 4 of 1988, s. 162 (w.e.f. 1-4-1989). 9. Subs. by Act 53 of 1962, s. 2, for "clause (11) of section 2" (w.e.f. 1-4-1963). 10. Ins. by Act 12 of 1959, s. 27 (w.e.f. 1-4-1959). 11. The words "or sub-clause (b)" omitted by Act 4 of 1988, s. 162 (w.e.f. 1-4-1989).