https://www.taxtmi.com/caselaws?id=18877 Pre-emptive purchase under Chapter XXC of the Income-tax Act can be sustained only on a reasoned and objective satisfaction based on material showing understatement of the apparent consideration by more than 15 per cent. Mere rejection of the parties' explanation is insufficient, and comparable sale instances cannot be discarded on speculative grounds without supporting material. On the facts discussed, the authority's inference of undervaluation lacked a concrete basis, the relied-upon sale instances were wrongly rejected, and the impugned pre-emptive purchase order was quashed. en-us Thu, 04 May 1995 00:00:00 +0530 Mon, 02 Nov 2009 15:31:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=18877 Pre-emptive purchase under Chapter XXC of the Income-tax Act can be sustained only on a reasoned and objective satisfaction based on material showing understatement of the apparent consideration by more than 15 per cent. Mere rejection of the parties' explanation is insufficient, and comparable sale instances cannot be discarded on speculative grounds without supporting material. On the facts discussed, the authority's inference of undervaluation lacked a concrete basis, the relied-upon sale instances were wrongly rejected, and the impugned pre-emptive purchase order was quashed. Case-Laws Income Tax Thu, 04 May 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=18877