1990 (2) TMI 324 - HC - Income Tax

Summary

Issues:
1. Applicability of section 52(2) of the Income Tax Act, 1961 regarding the valuation of properties sold by the assessee.
2. Admissibility of affidavits filed by purchasers regarding additional consideration paid beyond the sale deed amount.

Detailed Analysis:

1. The case involved the applicability of section 52(2) of the Income Tax Act, 1961, concerning the valuation of properties sold by the assessee. The Income Tax Officer invoked this provision as the fair market value of the properties sold exceeded the consideration declared by the assessee by more than 15%. The Appellate Assistant Commissioner held that section 52(2) could not be applied without evidence of additional consideration received by the assessee. The Department appealed to the Tribunal, which considered affidavits from purchasers stating they paid more than the sale deed amount. The Tribunal remitted the matter to the Appellate Assistant Commissioner for further examination. The High Court held that the Tribunal had the power to consider the affidavits to determine the applicability of section 52(2) and directed a fresh consideration based on the evidence presented.

2. The admissibility of the affidavits filed by purchasers regarding additional consideration paid beyond the sale deed amount was a crucial issue in the case. The affidavits were available during the initial assessment stages but were not presented to the assessing authority or the first appellate authority due to lack of coordination within the department. The Revenue relied on these affidavits before the Tribunal to establish the applicability of section 52(2) of the Act. The High Court emphasized that the Tribunal had the discretion to admit relevant evidence, even if not presented earlier, to ascertain the correct tax liability of the assessee. The Court cited previous decisions to support the Tribunal's authority to consider such evidence in the interest of justice and to determine the applicability of tax provisions accurately. Ultimately, the High Court upheld the Tribunal's decision to remit the matter for fresh consideration based on the affidavits, ruling in favor of the Revenue and awarding costs to them.