https://www.taxtmi.com/caselaws?id=29585 Section 52(2) of the Income-tax Act is described as a computation provision aimed at countering understatement of consideration, not at taxing every transfer where fair market value exceeds the declared price. The text states that the revenue must show both the statutory market-value difference and actual understatement of consideration; if a transfer is bona fide and the recorded consideration is the true amount received, section 52(2) does not apply. In that situation, the excess of market value over price may be treated as a gift in the ordinary sense, and exemption under section 47(iii) is attracted on that basis. en-us Fri, 16 Oct 1981 00:00:00 +0530 Sat, 13 Mar 2010 18:17:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=29585 Section 52(2) of the Income-tax Act is described as a computation provision aimed at countering understatement of consideration, not at taxing every transfer where fair market value exceeds the declared price. The text states that the revenue must show both the statutory market-value difference and actual understatement of consideration; if a transfer is bona fide and the recorded consideration is the true amount received, section 52(2) does not apply. In that situation, the excess of market value over price may be treated as a gift in the ordinary sense, and exemption under section 47(iii) is attracted on that basis. Case-Laws Income Tax Fri, 16 Oct 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=29585