1998 (7) TMI 14 - HC - Income Tax

Summary

The High Court of Madras ruled in favor of the assessee in a case involving the transfer of assets from a firm to a company owned by the same partners. The court held that the consideration for the transfer was adequate and not undervalued, rejecting the Revenue's argument. The court referred to a previous case and emphasized that adequacy of consideration should be determined based on all circumstances, not just market value. The court awarded costs of Rs. 1,000 to the assessee.