1972 (4) TMI 12 - HC - Income Tax

Transfer of shares to sons for a price lower than the market value - on the specific findings given by the Tribunal that the object of the transfer was not with a view to avoid or reduce the assessee s liability to pay tax on the capital gains under section 45, the conclusion of the Tribunal that section 52 will not be attracted appears to be inescapable we uphold the view of the Tribunal and answer the reference against the revenue

Summary

The High Court of Madras upheld the Tribunal's decision that Section 52 of the Income-tax Act did not apply to the transfer of shares by the assessee to his sons, as the transfer was not to avoid tax liability. The Tribunal's view was consistent with previous court decisions. The judgment was delivered by Judges V. Ramaswamy and G. Ramanujam. The reference was answered against the revenue with costs.