Challenge by AO for insufficient consideration

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