648/CBDT. - Income Tax - 648/CBDT

INSTRUCTION NO. 648/CBDT Dated : June 24, 1974 Section(s) Referred: 52(2) Statute: Income - Tax Act, 1961 Reference is invited to para 65 Board's circular No. 20(LXXXVI)D of 1964 dated 7th July, 1964 incorporating the assurance given by the Finance Minister in the Lok Sabha during the clause-by-clause consideration of the Finance Bill, 1964. This assurance pertains to the application of section 52(2) of the income tax Act, 1961. The assurance is as under:- ' Today practically every transaction of the sale of property is for a much lower figure than what is actually received. The deed of registration mentions a particular amount, the actual money that passes is considerably more. It is to deal with these classes of sale that this amendment has been drafted- It does not aim at perfectly bona fide transactions but essentially relates to the day-to-day occurrences that are happening before our eyes in regard to the transfer of property. I think this is one of the key sections, that should help us to defeat the free play of unaccounted money and cheating of the Government". The Board desire that while completing assessments the ITOs should keep in mind the assurance given by the Minister of Finance and the provisions of section 52(2) of the Income-tax Act, may not be invoked in cases of bonafide transactions.