1985 (9) TMI 64 - HC - Income Tax

Summary

The High Court of Bombay ruled in favor of the assessee in a case involving the valuation of land for capital gains tax purposes. The court held that section 52(2) of the Income-tax Act, 1961, could not be applied if the consideration for the transfer of a capital asset was not understated by the assessee. The decision was based on the Supreme Court ruling in K. P. Varghese v. ITO [1981] 131 ITR 597. The question was answered in favor of the assessee, and no costs were awarded.