Section 52(2) inapplicable where declared consideration was genuine and no extra amount was shown to have been received.

Section 52(2) of the Income-tax Act, 1961 was held inapplicable where the Tribunal found no material showing that the declared sale consideration was false or that any additional amount had been received over and above what was disclosed. Applying the governing interpretation of section 52(2), the Court accepted that the provision could not be invoked when the consideration stated by the assessee was genuine and accurate. The assessee's case for the assessment year 1970-71 therefore did not attract section 52(2).

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Issues: Whether section 52(2) of the Income-tax Act, 1961 was applicable to the assessee's case for the assessment year 1970-71.

Analysis: The Tribunal had found that there was no material to show that the consideration declared by the assessee was not the correct consideration or that any additional amount had been received over and above what was disclosed. The factual position was considered in the light of the governing decision on section 52(2), and the Court accepted that the section could not be invoked where the declared consideration was genuine and accurate.

Conclusion: Section 52(2) of the Income-tax Act, 1961 was not applicable to the assessee's case.

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