https://www.taxtmi.com/caselaws?id=18975 Pre-emptive purchase under Chapter XX-C is intended for cases of significant undervaluation indicating possible tax evasion, and the statutory presumption remains rebuttable. The appropriate authority must consider all relevant material on record and cannot reach a valuation mechanically or perversely. Here, the authority did not consider the respondents' own engineers' lower valuation report before fixing a higher rate, amounting to non-application of mind. Because the apparent undervaluation did not reasonably justify an inference of tax evasion, the compulsory purchase order was unsustainable and was quashed, with the matter remitted for fresh consideration after taking the engineers' report into account. en-us Thu, 17 Nov 1994 00:00:00 +0530 Tue, 03 Nov 2009 11:40:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=18975 Pre-emptive purchase under Chapter XX-C is intended for cases of significant undervaluation indicating possible tax evasion, and the statutory presumption remains rebuttable. The appropriate authority must consider all relevant material on record and cannot reach a valuation mechanically or perversely. Here, the authority did not consider the respondents' own engineers' lower valuation report before fixing a higher rate, amounting to non-application of mind. Because the apparent undervaluation did not reasonably justify an inference of tax evasion, the compulsory purchase order was unsustainable and was quashed, with the matter remitted for fresh consideration after taking the engineers' report into account. Case-Laws Income Tax Thu, 17 Nov 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=18975