https://www.taxtmi.com/caselaws?id=8774 For capital gains computation, where capital assets are transferred for declared consideration below fair market value, section 52 substitutes fair market value as the consideration relevant under section 48, so the difference is chargeable under section 45. Section 47(iii) does not exclude such a transfer merely because the shortfall may be treated as a gift under the Gift-tax Act, since that deeming fiction does not govern the Income-tax Act. Prior gift-tax assessment of the differential also does not bar capital gains taxation, as the same amount may attract different taxes under distinct statutes. The assessment of capital gains on the difference was therefore upheld. en-us Wed, 05 Jul 1972 00:00:00 +0530 Wed, 03 Jun 2009 18:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8774 For capital gains computation, where capital assets are transferred for declared consideration below fair market value, section 52 substitutes fair market value as the consideration relevant under section 48, so the difference is chargeable under section 45. Section 47(iii) does not exclude such a transfer merely because the shortfall may be treated as a gift under the Gift-tax Act, since that deeming fiction does not govern the Income-tax Act. Prior gift-tax assessment of the differential also does not bar capital gains taxation, as the same amount may attract different taxes under distinct statutes. The assessment of capital gains on the difference was therefore upheld. Case-Laws Income Tax Wed, 05 Jul 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8774