https://www.taxtmi.com/caselaws?id=8653 The first proviso to section 12B(2) of the Income-tax Act, 1922 was construed as a machinery provision that applies only where consideration for a transfer is understated with the object of avoiding or reducing tax on actual capital gain. Where the sales were real and genuine, the recorded consideration was actually received, and there was no understatement of price, the proviso could not be invoked merely because the transferees were connected persons or the explanation for the sales was not accepted. The burden lay on the department to prove tax-avoidance intent and understatement; suspicion alone was insufficient, and notional or fictional gain could not be taxed. en-us Tue, 07 Mar 1972 00:00:00 +0530 Thu, 25 Oct 2018 14:41:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8653 The first proviso to section 12B(2) of the Income-tax Act, 1922 was construed as a machinery provision that applies only where consideration for a transfer is understated with the object of avoiding or reducing tax on actual capital gain. Where the sales were real and genuine, the recorded consideration was actually received, and there was no understatement of price, the proviso could not be invoked merely because the transferees were connected persons or the explanation for the sales was not accepted. The burden lay on the department to prove tax-avoidance intent and understatement; suspicion alone was insufficient, and notional or fictional gain could not be taxed. Case-Laws Income Tax Tue, 07 Mar 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8653