APPROPRIATE AUTHORITY vs R.C. CHAWLA

The Supreme Court upheld the High Court's decision to quash the Appropriate Authority's order under Section 269UD of the Income Tax Act, 1961, which mandated the compulsory purchase of property due to undervaluation. The Court emphasized that the Appropriate Authority failed to consider the pending litigation affecting the property's title, which is a crucial factor in determining fair market value. Consequently, the appeal was dismissed, affirming the High Court's ruling and imposing costs of Rs.10,000.