https://www.taxtmi.com/caselaws?id=6412 Tax authorities cannot substitute market value for the actual consideration in a bona fide transfer of stock-in-trade between distinct legal entities merely because the arrangement reduces tax liability. Where the transfer is genuine, no sham or secret profit is shown, and no material establishes real income beyond the price actually received, taxation must be confined to real income and not notional or fictional profit. A taxpayer remains entitled to arrange commercial affairs to minimise tax within lawful limits, and principles applied to self-consumption or own-use transfers do not govern an actual sale between separate traders at an agreed price. en-us Tue, 10 Apr 1973 00:00:00 +0530 Wed, 25 Oct 2017 17:35:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6412 Tax authorities cannot substitute market value for the actual consideration in a bona fide transfer of stock-in-trade between distinct legal entities merely because the arrangement reduces tax liability. Where the transfer is genuine, no sham or secret profit is shown, and no material establishes real income beyond the price actually received, taxation must be confined to real income and not notional or fictional profit. A taxpayer remains entitled to arrange commercial affairs to minimise tax within lawful limits, and principles applied to self-consumption or own-use transfers do not govern an actual sale between separate traders at an agreed price. Case-Laws Income Tax Tue, 10 Apr 1973 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6412