1993 (7) TMI 24

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....e been referred to this court by the Income-tax Appellate Tribunal under section 256(1) of the Income-tax Act, 1961 : " 1. Whether, on the facts and in the circumstances of the case, the provisions of section 52(2) could be invoked in the absence of proof of avoidance or reduction of the assessee's tax liabilities under section 45 of the Income-tax Act ? 2. Whether, on the facts and in the c....

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....me-tax Officer also rejected the contention raised on behalf of the assessee that the provisions of section 47(iii) were attracted and, therefore, capital gains were not chargeable in respect of the said difference. The assessee, therefore, preferred an appeal to the Appellate Assistant Commissioner. The Appellate Assistant Commissioner held that in the absence of any material to show that the ....

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....d, it is directly covered by the decision of the Supreme Court in K. P. Varghese v. ITO [1981] 131 ITR 597, wherein the Supreme Court has held that sub-section (2) of section 52 of the Income-tax Act, 1961, can be invoked only where the consideration for the transfer of a capital asset has been understated by the assessee, or, in other words, the full value of the consideration in respect of the t....