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Sri Balaji Constructions Company, ... vs Department Of Income Tax on 28 February, 2012 cites

K.P. Varghese vs The Income Tax Officer,Ernakulam, And ... on 4 September, 1981

In the present case, there is no evidence to show that the assessee having received sale consideration in excess of the consideration shown to the Department. We are not in a position to hold that the assessee has suppressed the sales consideration. Even otherwise, the expression "full value of consideration" cannot be construed as having reference to the market value of the assets, but only means that the full value of consideration received by the assessee on sale. Accordingly, placing reliance on the judgment of the Supreme Court in the case of K.P. Verghese vs. ITO (131 ITR 597) (SC), wherein the Apex Court 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, we are not inclined to allow the grounds taken by the Revenue. In our opinion, the CIT(A) is justified in directing the Assessing Officer to adopt the value mentioned in the registered sale deed at Rs.2,72,30,000 in the place of value as per the certificate of the SRO, i.e. Rs.3,77,40,390. We accordingly uphold the action of the CIT(A) and reject the grounds of the Revenue in this appeal.
Supreme Court of India Cites 26 - Cited by 3460 - P N Bhagwati - Full Document
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