| Case ID |
0a07a4ab-67e2-4703-8627-ac42a014f0c9 |
| Body |
View case body. Login to View |
| Case Number |
Civil Appeal No. 5426 of 1997 |
| Decision Date |
Mar 13, 2001 |
| Hearing Date |
|
| Decision |
The Supreme Court of India reversed the decision of the Gujarat High Court regarding the pre-emptive purchase of immovable property by the Central Government under Chapter XX-C of the Income Tax Act, 1961. The case revolved around the sale of immovable property, where the apparent consideration was less than the market value by 15% or more. The Court held that the entire property was to be considered as the subject of transfer, not just the individual shares of the co-owners. This ruling clarified the application of the law regarding pre-emptive purchase, emphasizing the need to evaluate the property in a real and substantive manner rather than a technical one. The judgment also mandated that the appropriate authority should disclose all valuation reports to the respondents and hear the matter afresh, ensuring compliance with principles of natural justice. |
| Summary |
In the landmark case of Appropriate Authority vs. Smt. Varshaben Bharatbhai Shah, the Supreme Court of India addressed critical aspects of property transfer and taxation under the Income Tax Act, 1961. This case highlights the nuances of Chapter XX-C, which allows the Central Government to pre-emptively purchase immovable property if the apparent consideration is significantly less than the market value. The Supreme Court's ruling clarified that the entire property, rather than individual shares, should be evaluated for tax purposes, and that apparent consideration must reflect realistic market conditions. This decision is pivotal for taxpayers and legal practitioners as it reinforces the importance of transparency and adherence to legal standards in property transactions. Keywords such as 'Income Tax Act', 'pre-emptive purchase', 'property transfer', and 'Supreme Court ruling' are essential for understanding the implications of this case in current legal discussions. |
| Court |
Supreme Court of India
|
| Entities Involved |
Not available
|
| Judges |
S. P. Bharucha,
N. Santosh Hegde,
Y. K. Sabharwal
|
| Lawyers |
Not available
|
| Petitioners |
another,
Appropriate Authority
|
| Respondents |
others,
Smt. Varshaben Bharatbhai Shah
|
| Citations |
2001 SLD 290,
2001 PTD 2556,
(2001) 248 ITR 342
|
| Other Citations |
K.V. Kishore v. Appropriate Authority (1991) 189 ITR 264 (Mad.),
N.C. Rangesh v. Inspector-General of Registration (1991) 189 ITR 270 (Mad.),
Appropriate Authority v. J.S.A. Raghava Reddy (1993) 199 ITR 508 (Kar.),
Surinder Gupta v. Chief CIT (1991) 221 ITR 375 (Delhi),
Webster Industries Ltd. v. Union of India (1997) 225 ITR 924 (Cal.),
Smt. Varshaben Bharatbhai Shah v. Appropriate Authority (1996) 221 ITR 819,
C.B. Gautam v. Union of India (1993) 199 ITR 530 (SC)
|
| Laws Involved |
Income Tax Rules, 1962
|
| Sections |
48,
48K
|