https://www.taxtmi.com/caselaws?id=11733 Chapter XX-C of the Income-tax Act is intended to curb substantial understatement of consideration in immovable property transactions, but the presumption of tax evasion arises only where fair market value exceeds the apparent consideration by the prescribed margin and remains rebuttable. In valuing immovable property, material encumbrances such as long-standing tenancy rights must be factored in because they can materially depress market value; an unadjusted land-and-building valuation is not a correct measure in that setting. A public auction conducted with statutory sanction, absence of competing bids, and surrounding circumstances supporting bona fides may negate any inference of tax evasion, so pre-emptive purchase proceedings are not attracted. en-us Tue, 08 Apr 2003 00:00:00 +0530 Sat, 06 Feb 2010 17:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=11733 Chapter XX-C of the Income-tax Act is intended to curb substantial understatement of consideration in immovable property transactions, but the presumption of tax evasion arises only where fair market value exceeds the apparent consideration by the prescribed margin and remains rebuttable. In valuing immovable property, material encumbrances such as long-standing tenancy rights must be factored in because they can materially depress market value; an unadjusted land-and-building valuation is not a correct measure in that setting. A public auction conducted with statutory sanction, absence of competing bids, and surrounding circumstances supporting bona fides may negate any inference of tax evasion, so pre-emptive purchase proceedings are not attracted. Case-Laws Income Tax Tue, 08 Apr 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=11733