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of <h1>Court Quashes Order Under Income-tax Act 1961</h1> The court allowed the petition, quashing and setting aside the order dated March 30, 1995, under the Income-tax Act, 1961. The court found errors in the ... Appropriate Authority, Central Government Issues Involved:1. Deletion of respondent No. 2.2. Quashing and setting aside the order dated March 30, 1995, by the appropriate authority under the Income-tax Act, 1961.3. Consideration of comparable sale instances.4. Alleged understatement of property value by more than 15%.5. Satisfaction based on objective facts under section 269UD of the Act.Detailed Analysis:1. Deletion of Respondent No. 2:The court granted permission to the petitioners to delete the name of respondent No. 2, making respondent No. 1 the sole respondent.2. Quashing and Setting Aside the Order:The petition was filed to quash and set aside the order dated March 30, 1995, passed by the appropriate authority under the Income-tax Act, 1961. The petitioners contended that the order was based on an alleged understatement of the property value by more than 15%.3. Consideration of Comparable Sale Instances:The petitioners argued that the sale instances relied upon by the appropriate authority were not comparable. They highlighted that the property under consideration was 13 years old, required repairs, and was situated in a congested area, whereas the sale instance properties were newer and in less congested areas. The court found that the appropriate authority failed to consider the petitioners' sale instances from March, May, and August 1994, and instead relied heavily on a sale instance from December 30, 1994. The court noted an error apparent on the face of the record by not considering the price increase for the sale instance property.4. Alleged Understatement of Property Value:The appropriate authority issued a show-cause notice alleging that the apparent and discounted consideration of the property appeared understated by more than 15%. The petitioners contended that the authority ignored relevant sale instances and gave undue importance to the sale instance property. The court found that the appropriate authority did not provide a basis for the 14% deduction allowed for the sale instance property and failed to explain how traffic jams and social gatherings would advantage the property under consideration.5. Satisfaction Based on Objective Facts:The court emphasized that the satisfaction required under section 269UD must be based on objective facts and evidence. The court referred to a previous decision, stating that the reasons for pre-emptive purchase must be specified and supported by material facts. The court concluded that the appropriate authority did not arrive at a positive and definite conclusion that the property was undervalued based on objective facts. Consequently, the order was quashed and set aside.Conclusion:The petition was allowed, and the impugned order dated March 30, 1995, was quashed and set aside. The respondent was directed to complete necessary formalities within six weeks, including the issuance of a clearance certificate. The rule was made absolute with no order as to costs.
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