1983 (1) TMI 22

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....nce is made at the instance of the Commissioner of Income-tax, Nagpur, under s. 256(1) of the I.T. Act, 1961. The questions referred by the Tribunal are as follows: " 1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was correct in holding that the provisions of section 52(2) were not applicable to the instant case ? 2. Whether, on the facts and in the cir....

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....m to make a report on the value of the building on the date of its transfer. The District Valuation Officer made a report that the fair market value of the said property was estimated at Rs. 65,08,000. The ITO took recourse to the provisions of s. 52(2) of the I.T. Act and adopted the fair market value as the full value of the consideration for the purpose of computing capital gains from the tr....

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....t. This decision of the AAC has been confirmed by the Tribunal, while dismissing the appeal filed by the Department. Arising out of this order of the Tribunal, the questions reproduced earlier have been referred to this court, The law with regard to the applicability of s. 52(2) of the I.T. Act has now been settled by the Supreme Court in K. P. Varghese v. ITO. [1981] 131 ITR 597. The Suprem....

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....has been understated or that the full value of the consideration is shown at a lesser figure than that actually received by the assessee. The burden to prove the circumstances on which the provisions of s. 52(2) can be attracted was on the Department. It is not in dispute that there is no material on which the Department can rely in order to invoke the provisions of s. 52(2). For the purposes of t....