K.V. SHIVAKUMAR vs APPROPRIATE AUTHORITY .

The Supreme Court addressed the validity of pre-emptive purchase under Section 269-UE of the Income Tax Act, 1961, concerning a property in Bangalore. The Court held that the Appropriate Authority's action to pre-emptively purchase the property was justified due to undervaluation aimed at tax evasion. The Court reversed the Karnataka High Court's decision, affirming the Constitution Bench ruling in C.B. Gautam v. Union of India, which clarified the legal standards applicable to such purchases.