K.P. Varghese vs Income Tax Officer & Anr.

Whether understatement of consideration in a transfer of property is a necessary condition for attracting the applicability of section 52(2) of the Income Tax Act, 1961, or it is enough for the Revenue to show that the fair market value of the property as on the date of the transfer exceeds the full value of the consideration declared by the assessee by an amount of not less than 15% of the value so declared --- Held: Yes, understatement of consideration is a necessary condition; section 52(2) applies only where the consideration for the transfer is understated and the assessee has actually received a larger consideration than what is declared.