https://www.taxtmi.com/caselaws?id=21163 For fair market value under section 55(2) of the Income-tax Act, the surplus mentioned in the Life Insurance Corporation compensation scheme is only a valuation factor; it is not to be treated as an independent surplus payable beyond market value. The note also states that a running business can itself be a capital asset capable of improvement after 1 January 1954 under section 55(1)(b), and that increased business activity and assessed profits may support such a finding even without any change in share capital. On that record, a Tribunal's estimate of improvement cost may be upheld as a reasonable factual inference if supported by evidence. en-us Tue, 20 Feb 1990 00:00:00 +0530 Fri, 20 Nov 2009 15:07:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=21163 For fair market value under section 55(2) of the Income-tax Act, the surplus mentioned in the Life Insurance Corporation compensation scheme is only a valuation factor; it is not to be treated as an independent surplus payable beyond market value. The note also states that a running business can itself be a capital asset capable of improvement after 1 January 1954 under section 55(1)(b), and that increased business activity and assessed profits may support such a finding even without any change in share capital. On that record, a Tribunal's estimate of improvement cost may be upheld as a reasonable factual inference if supported by evidence. Case-Laws Income Tax Tue, 20 Feb 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=21163