Judgment

BHAGWATI, J.:- The principal question that arises for determination in this appeal by certificate is whether understatement of consideration in a transfer of property is a necessary condition for attracting the applicability of Section 52 sub-section (2) of the Inconme-Tax Act 1961 (hereinafter referred as the Act) 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 in respect of the transfer by an amount of not less than 15 of the value so declared. The facts giving rise to the appeal are not very material but since they form the backdrop against which the question arises for consideration, we may briefly state them.

2. The assessee was the owner of a house situated in Ernakulam, which he had purchased in 1958 for the price of Rs. 16,500/- .On 25th December, 1965 the assessee sold the house for the same price of Rs. 16,500/- to his daughter-in-law and five of his children. The assessment of the assessee for the assessment year 1966-67 for which the relevant accounting year was the calendar year 1965 was thereafter completed in the normal course