https://www.taxtmi.com/caselaws?id=7618 Where depreciable assets were acquired under a genuine purchase agreement supported by independent valuation, the revenue could not go behind the agreed values to rework the original cost unless there was material showing fraud, collusion, inflation, deflation, or other reason to distrust the stated consideration. On that basis, the agreed cost of the plant, machinery and buildings had to be accepted. The estimated addition for alleged understated production of yarn and soft waste also failed because the assessee's regular records were not shown to be unreliable, the spinning process did not permit easy sectional quantity records, and the estimate rested on assumptions rather than supporting material. en-us Mon, 17 Mar 1969 00:00:00 +0530 Thu, 05 Mar 2009 15:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7618 Where depreciable assets were acquired under a genuine purchase agreement supported by independent valuation, the revenue could not go behind the agreed values to rework the original cost unless there was material showing fraud, collusion, inflation, deflation, or other reason to distrust the stated consideration. On that basis, the agreed cost of the plant, machinery and buildings had to be accepted. The estimated addition for alleged understated production of yarn and soft waste also failed because the assessee's regular records were not shown to be unreliable, the spinning process did not permit easy sectional quantity records, and the estimate rested on assumptions rather than supporting material. Case-Laws Income Tax Mon, 17 Mar 1969 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7618