Taxation of capital gains: market-value basis prevents evasion and permits reassessment when consideration is understated. The note explains that Section 52(2) treats the full value of the consideration for a transferred capital asset as its market value where declared consideration is understated, to prevent tax evasion on capital gains, while permitting a 15% margin for genuine valuation differences and imposing safeguards such as prior concurrence of a senior inspecting officer, opportunity to be heard, and referral to a Valuation Officer or appellate remedies to avoid arbitrary application.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Taxation of capital gains: market-value basis prevents evasion and permits reassessment when consideration is understated.
The note explains that Section 52(2) treats the full value of the consideration for a transferred capital asset as its market value where declared consideration is understated, to prevent tax evasion on capital gains, while permitting a 15% margin for genuine valuation differences and imposing safeguards such as prior concurrence of a senior inspecting officer, opportunity to be heard, and referral to a Valuation Officer or appellate remedies to avoid arbitrary application.
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