Fair market value adjustments: tax authorities may replace declared consideration with FMV when declared price is materially understated. The amendment empowers the Income-tax Officer to treat the full value of consideration for a transferred capital asset as its fair market value where the officer opines the declared consideration is materially lower than market value, and mandates that such substitution occur only with the previous approval of the Inspecting Assistant Commissioner.
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Provisions expressly mentioned in the judgment/order text.
Fair market value adjustments: tax authorities may replace declared consideration with FMV when declared price is materially understated.
The amendment empowers the Income-tax Officer to treat the full value of consideration for a transferred capital asset as its fair market value where the officer opines the declared consideration is materially lower than market value, and mandates that such substitution occur only with the previous approval of the Inspecting Assistant Commissioner.
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