https://www.taxtmi.com/caselaws?id=16885 Under Chapter XXC of the Income-tax Act, compulsory pre-emptive purchase can be sustained only on a reasoned finding that the apparent consideration is significantly understated with a view to evade tax, and not on undervaluation alone. A show-cause notice must disclose the valuation basis, comparable instances, and other materials relied upon so the affected parties have a real opportunity to rebut the case; delayed disclosure does not cure the defect where effective response is impaired. Purchase orders that ignore relevant contractual and valuation material, or proceed mechanically without the statutory tax-evasion finding, are arbitrary and invalid. Interest on unpaid consideration is not automatic and depends on the facts and equity of the transaction. en-us Wed, 24 Dec 1997 00:00:00 +0530 Sat, 12 Sep 2009 17:30:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=16885 Under Chapter XXC of the Income-tax Act, compulsory pre-emptive purchase can be sustained only on a reasoned finding that the apparent consideration is significantly understated with a view to evade tax, and not on undervaluation alone. A show-cause notice must disclose the valuation basis, comparable instances, and other materials relied upon so the affected parties have a real opportunity to rebut the case; delayed disclosure does not cure the defect where effective response is impaired. Purchase orders that ignore relevant contractual and valuation material, or proceed mechanically without the statutory tax-evasion finding, are arbitrary and invalid. Interest on unpaid consideration is not automatic and depends on the facts and equity of the transaction. Case-Laws Income Tax Wed, 24 Dec 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=16885