The Special Bearer Bonds (Immunities And Exemptions) Act, 1981
ACT NO. 7 OF 1981
(a) no person who has subscribed to or has otherwise acquired Special Bearer Bonds shall be required to disclose, for any purpose whatsoever, the nature and source of acquisition of such Bonds;
(b) no inquiry or investigation shall be commenced against any person under any such law on the ground that such person has subscribed to or has otherwise acquired Special Bearer Bonds; and
(c) the fact that a person has subscribed to or has otherwise acquired Special Bearer Bonds shall not be taken into account and shall be inadmissible as evidence in any proceedings relating to any offence or the imposition of any penalty under any such law.(2) Nothing in sub-section (1) shall apply in relation to prosecution for any offence punishable under Chapter IX or Chapter XVII of the Indian Penal Code (45 of 1860), the Prevention of Corruption Act, 1947 (2 of 1947) or any offence which is punishable under any other law and which is similar to an offence punishable under either of those Chapters or under that Act or for the purpose of enforcement of any civil liability. Explanation.--For the purposes of this sub-section, "civil liability" does not include liability by way of tax under any law for the time being in force. 4. Acquisition, etc, of Bonds not to be taken into account for certain proceedings. - Without prejudice to the generality of the provisions of section 3, the subscription to, or acquisition of, Special Bearer Bonds by any person shall not be taken into account for the purpose of any proceedings under the Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as the Income-tax Act), the Wealth-tax Act, 1957 (27 of 1957) (hereinafter referred to as the Wealth-tax Act) or the Gift-tax Act, 1958 (18 of 1958) (hereinafter referred to as the Gift-tax Act) and, in particular, no person who has subscribed to, or has otherwise acquired, the said Bonds shall be entitled--
(a) to claim any set-off or relief in any assessment, re-assessment, appeal, reference or other proceeding under the Income-tax Act or to reopen any assessment or re-assessment made under that Act on the ground that he has subscribed to or has otherwise acquired the said Bonds;
(b) to claim, in relation to any period before the date of maturity of the said Bonds, that any asset which is includible in his net wealth for any assessment year under the Wealth-tax Act has been converted into the said Bonds; or
(c) to claim, in relation to any period before the date of maturity of the said Bonds, that any asset held by him or any sum credited in his books of account or otherwise held by him represents the consideration received by him for the transfer of the said Bonds.5. Amendment of Act 43 of 1961. Rep. by the Repealing and Amending Act, 1988 (19 of 1988), Section 2 and the First Schedule. 6. [Amendment of Act 27 of 1957. ] Rep. by the Repealing and Amending Act, 1988 (19 of 1988), Section 2 and the First Schedule. "(xvib) Special Bearer Bonds, 1991;". 7. Amendment of Act 18 of 1958. -In section 5 of the Gift-tax Act, in sub-section (1), after clause (iiia), the following clause shall be inserted, namely:-- "(iiib) of property in the form of Special Bearer Bonds, 1991;". 8. Power to remove difficulties. (1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order, not inconsistent with the provisions of this Act, remove the difficulty. (2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament. 9. [Repeal and saving. ] Rep. by the Repealing and Amending Act, 1988 (19 of 1988), Section 2 and the First Schedule.