https://www.taxtmi.com/caselaws?id=180071 Pre-emptive purchase under Chapter XXC of the Income-tax Act could not be sustained because the Appropriate Authority did not first determine the fair market value of the subject property on a reasoned, evidence-based basis. The statutory condition for invoking purchase was that the apparent consideration be lower by 15% or more than fair market value, and that precondition was not properly established. The authority relied on a comparable sale without allowing for material differences, including location, nature of the property, municipal limits, encumbrances, and the value of the constructed area included in the consideration. The acquisition order was therefore set aside. en-us Mon, 04 Aug 2014 00:00:00 +0530 Wed, 16 Mar 2016 10:19:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=180071 Pre-emptive purchase under Chapter XXC of the Income-tax Act could not be sustained because the Appropriate Authority did not first determine the fair market value of the subject property on a reasoned, evidence-based basis. The statutory condition for invoking purchase was that the apparent consideration be lower by 15% or more than fair market value, and that precondition was not properly established. The authority relied on a comparable sale without allowing for material differences, including location, nature of the property, municipal limits, encumbrances, and the value of the constructed area included in the consideration. The acquisition order was therefore set aside. Case-Laws Income Tax Mon, 04 Aug 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=180071