https://www.taxtmi.com/caselaws?id=25367 Section 67(3) permits a partner to deduct interest paid on capital borrowed for investment in the firm while computing income from the share in the firm, and the deduction is not denied merely because the firm had not commenced the relevant business activity as suggested by the Revenue. Section 52(2) applies only where the consideration for transfer of a capital asset is actually understated; in the absence of a finding that more than the recorded sale consideration was received, the provision cannot be invoked. Once section 52(2) is inapplicable, no substituted valuation question arises for capital gains purposes. en-us Sat, 21 Mar 1987 00:00:00 +0530 Thu, 28 Jan 2010 11:46:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25367 Section 67(3) permits a partner to deduct interest paid on capital borrowed for investment in the firm while computing income from the share in the firm, and the deduction is not denied merely because the firm had not commenced the relevant business activity as suggested by the Revenue. Section 52(2) applies only where the consideration for transfer of a capital asset is actually understated; in the absence of a finding that more than the recorded sale consideration was received, the provision cannot be invoked. Once section 52(2) is inapplicable, no substituted valuation question arises for capital gains purposes. Case-Laws Income Tax Sat, 21 Mar 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25367