https://www.taxtmi.com/caselaws?id=17922 Chapter XX-A acquisition under the Income-tax Act could proceed only if the competent authority had a valid statutory basis under section 269C and correctly found that fair market value exceeded the apparent consideration by the prescribed margin. Fair market value had to be assessed from the standpoint of a prudent purchaser, with all material depressing factors considered, including encumbrances, tenancy at nominal rent, title disputes and restricted possession. The CBDT circular of 16 May 1986 also supported non-initiation or dropping of proceedings where the apparent consideration was within the relevant limit. On the stated facts, the threshold for acquisition was not met and the valuation exercise was legally defective. en-us Mon, 30 Sep 1996 00:00:00 +0530 Fri, 25 Sep 2009 16:13:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=17922 Chapter XX-A acquisition under the Income-tax Act could proceed only if the competent authority had a valid statutory basis under section 269C and correctly found that fair market value exceeded the apparent consideration by the prescribed margin. Fair market value had to be assessed from the standpoint of a prudent purchaser, with all material depressing factors considered, including encumbrances, tenancy at nominal rent, title disputes and restricted possession. The CBDT circular of 16 May 1986 also supported non-initiation or dropping of proceedings where the apparent consideration was within the relevant limit. On the stated facts, the threshold for acquisition was not met and the valuation exercise was legally defective. Case-Laws Income Tax Mon, 30 Sep 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=17922