Challenge by AO for insufficient consideration

501 views 1 replies

Hi Friends,


if i transfer an asset (current asset) from one company to another company for a value which is equal to book value but very much lower than existing market value, then can AO challenge it?

does answer remain same if both companies are part of same group / have same set of shareholder?

 

thanks in advance,

amit thakkar

Replies (1)
Originally posted by : amit


Hi Friends,


if i transfer an asset (current asset) from one company to another company for a value which is equal to book value but very much lower than existing market value, then can AO challenge it?

- documents relating to the transfer of asset can be challanged by AO if he found the consideration lower than the fair value. ( gift between the family members are not taken under this scope)

does answer remain same if both companies are part of same group / have same set of shareholder?

- does not matter as it is loss of revernue for state stamp duty and capital gain tax for direct taxes.

 

thanks in advance,

amit thakkar


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details
Company
26 May 2026
CA / MBA (Finance) / CMA / M.Com (Finance)

Sri Aurobindo Gnostic Centre of Education

New Delhi

CA

View Details
Company
ARTICLESHIP 18 June 2026
Article Assistance

RB KESHRI & CO.

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
26 May 2026
Audit executive

vdsr & co LLP

Chennai

CA Inter

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details