https://www.taxtmi.com/caselaws?id=5922 The first proviso to section 12B(2) of the Indian Income-tax Act, 1922 applies to capital gains computation only where the Revenue proves that the consideration actually received on transfer was understated. A sale at an undervalue, even if structured to reduce tax, is insufficient by itself; there must be direct or inferential evidence that more than the declared amount passed to the assessee. The burden of proving understatement rests on the Revenue, and where that proof is absent, substitution of fair market value for the declared consideration cannot be sustained. en-us Tue, 18 Mar 1986 00:00:00 +0530 Thu, 30 Oct 2025 13:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5922 The first proviso to section 12B(2) of the Indian Income-tax Act, 1922 applies to capital gains computation only where the Revenue proves that the consideration actually received on transfer was understated. A sale at an undervalue, even if structured to reduce tax, is insufficient by itself; there must be direct or inferential evidence that more than the declared amount passed to the assessee. The burden of proving understatement rests on the Revenue, and where that proof is absent, substitution of fair market value for the declared consideration cannot be sustained. Case-Laws Income Tax Tue, 18 Mar 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5922