Pre-emptive purchase valuation upheld where comparable sale in the same complex guided fair market value assessment.

The Delhi High Court examined whether a pre-emptive purchase order under section 269UD(1) was vitiated by an assessment of market value or surrounding circumstances. It accepted the appropriate authority's reliance on a comparable sale in the same complex with similar area as the best guide to fair market value, and noted that the date of transfer, temporal proximity, and property-specific advantages were considered in valuation. No procedural or substantive defect was found in the decision-making process, and the order was upheld.

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Issues: Whether the order for pre-emptive purchase under section 269UD(1) of the Income-tax Act, 1961, was vitiated by any legal infirmity in the authority's assessment of market value and surrounding circumstances.

Analysis: The impugned order was tested against the comparable sale instance relied upon by the appropriate authority, namely a flat in the same complex with approximately similar area, which was treated as the best guide for determining fair market value. The authority also considered the date of transfer, proximity in time, and the advantages attached to the property before arriving at its conclusion. No procedural or substantive defect was found in the decision-making process.

Conclusion: The order under section 269UD(1) was upheld and the challenge failed.

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