(1) Where the fair market value of an asset exceeds the full value of the consideration declared by the assessee by an amount greater than 15% (fifteen percent) of the value, the fair market value of the capital asset shall be determined, with the previous approval of the Inspecting Joint Commissioner, by the Deputy Commissioner of Taxes.

(2) Where the fair market value of an asset exceeds the declared acquisition value thereof by more than 25% (twenty five percent), the Deputy Commissioner of Taxes may, in the manner prescribed by the Board, offer to buy the said asset at the said declared acquisition value.

(3) Where a capital gain arises from the transfer of all capital assets of a partnership firm to a new company registered under the Companies Act, 1994 (Act No. XVIII of 1994), shall be exempt from tax if the consideration from the transfer of all assets is invested in the equity of the new company.