1982 (8) TMI 22

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....he Income-tax Officer failed to comply with the provisions of section 52(2) of the Income-tax Act, 1961 ? (2) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in law in holding that the assessment order passed by the Income-tax Officer was not prejudicial to the interest of the Revenue ? " The facts briefly stated are that for the assessment year 1972-73, the ITO computed the capital gains earned by the assessee on sales of three houses. Two houses were sold for Rs. 20,000 and Rs. 30,000. The third house was sold for Rs. 48,000. The ITO estimated the fair market value of the first two houses at Rs. 1,15,000 as against Rs. 50,000 shown in the sale deeds. The fair market value of the third....

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....et value on the date of its transfer: Provided that this sub-section shall not apply in any case (a) where the capital asset is transferred to the Government, or (b) where the full value of the consideration for the transfer of the capital asset is determined or approved by the Central Government or the Reserve Bank of India and the adequacy of the full value of the consideration so determined or approved is not questioned by the assessee." A reading of s. 52(2) will show that if the ITO is of the opinion that the fair market value of a capital asset transferred by an assessee exceeds the full value of the consideration declared by the assessee by an amount of not less than fifteen per cent. of the value so declared, the full value....