https://www.taxtmi.com/caselaws?id=69607 Section 52(1) applies only where the transferee is connected with the assessee and there is material to show understatement of consideration with a view to avoiding or reducing capital gains liability. A mere difference between market value and declared value, even if separately assessed to gift tax, is not enough to substitute fair market value as the full value of consideration. In the absence of a clear finding that more than the stated consideration was actually received or that the transfer was structured to avoid capital gains tax, invocation of section 52(1) is unjustified. The capital gains addition was therefore deleted in favour of the assessee. en-us Tue, 18 May 1999 00:00:00 +0530 Thu, 07 Apr 2011 18:57:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=69607 Section 52(1) applies only where the transferee is connected with the assessee and there is material to show understatement of consideration with a view to avoiding or reducing capital gains liability. A mere difference between market value and declared value, even if separately assessed to gift tax, is not enough to substitute fair market value as the full value of consideration. In the absence of a clear finding that more than the stated consideration was actually received or that the transfer was structured to avoid capital gains tax, invocation of section 52(1) is unjustified. The capital gains addition was therefore deleted in favour of the assessee. Case-Laws Income Tax Tue, 18 May 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=69607