Asgar S. Patel & Ors vs U.O.I. & Ors

The Supreme Court addressed the validity of the order passed by the Appropriate Authority under Section 269 UD of the Income-tax Act, 1961, concerning the compulsory purchase of property due to undervaluation. The Court held that the Appropriate Authority must consider the actual transaction and the circumstances surrounding it, emphasizing that mere undervaluation does not automatically justify compulsory acquisition. The Court quashed the order of compulsory purchase, ruling in favor of the transferees, thereby reinforcing the principle that the rights of parties in a sale agreement must be respected unless there is clear evidence of fraud or misrepresentation.