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1 - 2 of 2 (0.45 seconds)K.P. Varghese vs The Income Tax Officer,Ernakulam, And ... on 4 September, 1981
4. The matter is now concluded by this Court's decision in K. P. Varghese v. ITO , wherein it was held that Section 52(2) of the Income-tax Act, 1961, can be invoked only where the consideration for the transfer of a capital asset has been understated by the assessee, or, in other words, the full value of the consideration in respect of the transfer is shown at a lesser figure than that actually received by the assessee, and the burden of proving understatement or concealment is on the Revenue ; and the sub-section has no application in the case of a bona fide transaction where the consideration received by the assessee has been correctly declared. In view of the finding of fact recorded by the Tribunal, there was no question of invoking Section 52(2) of the Act. The High Court was, therefore, right in refusing to call for the reference from the Tribunal and rejecting the application under Section 256(2) of the Act.
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