Sri K.V. Shivakumar And Anr vs Appropriate Authority And Ors

The Supreme Court addressed the validity of pre-emptive purchase under Section 269-UE of the Income Tax Act, 1961, affirming that the Appropriate Authority's action to purchase property at a discounted value was justified due to undervaluation aimed at tax evasion. The Court held that the earlier judgment of the Karnataka High Court was overruled by the Constitution Bench in C.B. Gautam v. Union of India, establishing that the High Court's view was incorrect. Consequently, the appeal was allowed, reversing the High Court's decision.