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2006 (4) TMI 91 - HC - Income TaxUndervaluation in the transaction of sale of plot - ITO found that the fair market value of the plot in question, on the day of transaction, exceeded by more than 15 per cent. the value of consideration as shown by the assessee in respect of the transfer of the plot. Invoking section 52(2) the AO valued the plot at Rs. 55 per sq. yard against Rs. 45 per sq. yard shown by the assessee – provisions of section 52(2) have been invoked merely by recording that there is a difference of more than 15 per cent. in the value of the transaction - There is no finding on the second condition which was also required to be proved by the Revenue before invocation of section 52(2) - in the absence of any evidence on record to prove that the consideration of the impugned plot had been understated by the assessee with the object of avoidance or reduction of his tax liability, the Tribunal erred in law in holding that the provisions of section 52(2) were applicable to the case of the assessee - difference should not have been added to income of assesssee
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