https://www.taxtmi.com/caselaws?id=17132 A pre-emptive purchase order under Chapter XX-C of the Income-tax Act can be sustained only on relevant, comparable and contemporaneous material showing that the apparent consideration is undervalued by 15% or more so as to support the statutory presumption of tax evasion. Here, the comparable sales were materially defective, the authority relied on a later guideline rate and ignored contemporaneous valuation material, so the decision rested on irrelevant considerations and was unreasonable in judicial review. The High Court held that the statutory precondition for compulsory purchase was not established and quashed the order. en-us Mon, 02 Feb 1998 00:00:00 +0530 Tue, 15 Sep 2009 13:31:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=17132 A pre-emptive purchase order under Chapter XX-C of the Income-tax Act can be sustained only on relevant, comparable and contemporaneous material showing that the apparent consideration is undervalued by 15% or more so as to support the statutory presumption of tax evasion. Here, the comparable sales were materially defective, the authority relied on a later guideline rate and ignored contemporaneous valuation material, so the decision rested on irrelevant considerations and was unreasonable in judicial review. The High Court held that the statutory precondition for compulsory purchase was not established and quashed the order. Case-Laws Income Tax Mon, 02 Feb 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=17132