https://www.taxtmi.com/caselaws?id=38945 The proviso to section 12B(2) of the Indian Income-tax Act, 1922 applied only where a share transfer was made to a connected transferee with the object of avoiding or reducing capital gains tax; where the sale was compelled by Companies Act restrictions and the evidence did not show tax avoidance, the declared consideration could not be substituted by fair market value. Expenditure met by a parent company for excess remuneration paid to personnel of subsidiary companies was not deductible unless laid out wholly and exclusively for the parent's own business. By contrast, loss on a standing guarantee given in the course of the assessee's business was allowable only when the final unrecoverable balance became ascertainable after accounting for recoveries from the liquidator. en-us Mon, 01 Mar 1976 00:00:00 +0530 Sat, 10 Apr 2010 14:17:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38945 The proviso to section 12B(2) of the Indian Income-tax Act, 1922 applied only where a share transfer was made to a connected transferee with the object of avoiding or reducing capital gains tax; where the sale was compelled by Companies Act restrictions and the evidence did not show tax avoidance, the declared consideration could not be substituted by fair market value. Expenditure met by a parent company for excess remuneration paid to personnel of subsidiary companies was not deductible unless laid out wholly and exclusively for the parent's own business. By contrast, loss on a standing guarantee given in the course of the assessee's business was allowable only when the final unrecoverable balance became ascertainable after accounting for recoveries from the liquidator. Case-Laws Income Tax Mon, 01 Mar 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38945