In Brief
The Supreme Court upheld the Government's pre-emptive purchase of land under the Income Tax Act, 1961. The appellants agreed to buy land for Rs.99,84,500 but the Income Tax Department found the property's fair market value was significantly higher at Rs.1,46,58,548 (over 15% more). The Department issued a compulsory purchase order at the agreed price. The Court held the Department's detailed valuation—based on comparable properties, location, commercial use, and existing structures—was factually sound and not arbitrary. Since multiple courts consistently upheld the findings, the Supreme Court could not conduct a fresh inquiry under Article 136. The Court also clarified that disbursement of deposited consideration should follow statutory procedure, not ad-hoc judicial directions."
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