https://www.taxtmi.com/caselaws?id=183826 Income-tax authorities may look behind the form of a sale and share-allotment transaction when determining the written down value of assets for depreciation and balancing charge purposes. The actual cost to the assessee is the relevant basis, and while a bona fide transaction will ordinarily be accepted at its apparent consideration, an inflated or artificial valuation permits the authorities to ascertain the real value of the transferred vehicles. Because an excessive allotment of fully paid-up shares could not control the computation of taxable allowances, the inflated book value was disregarded and the true cost determined in favour of the Revenue. en-us Mon, 14 Dec 1953 00:00:00 +0530 Wed, 22 Jun 2016 16:46:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=183826 Income-tax authorities may look behind the form of a sale and share-allotment transaction when determining the written down value of assets for depreciation and balancing charge purposes. The actual cost to the assessee is the relevant basis, and while a bona fide transaction will ordinarily be accepted at its apparent consideration, an inflated or artificial valuation permits the authorities to ascertain the real value of the transferred vehicles. Because an excessive allotment of fully paid-up shares could not control the computation of taxable allowances, the inflated book value was disregarded and the true cost determined in favour of the Revenue. Case-Laws Income Tax Mon, 14 Dec 1953 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=183826