1993 (7) TMI 24 - HC - Income Tax

Summary

The High Court of Gujarat ruled that section 52(2) of the Income-tax Act could not be applied in the absence of proof of tax avoidance. The court cited the decision in K. P. Varghese v. ITO [1981] 131 ITR 597, stating that the burden of proof lies with the Revenue to show understatement of consideration. As a result, the court ruled against the Revenue and in favor of the assessee.