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Section 269UD of the Income-tax Act, 1961 - Purchase of immovable property by Central Government - Order by appropriate authority It cannot lie in the mouth of an authority to contend that the party must seek information if it wants to defend the action being initiated by the authorities. What is material to note is that under the relevant section, it is the authority which is initiating steps of compulsory acquisition of the property for the alleged undervaluation. This being the condition precedent, the authority must disclose to the party concerned as to how the said transaction which was being undertaken by the party suffered from undervaluation and that the same is on the basis of a particular comparable instance. It is not permissible for the authority at the time of hearing to decide that the transaction involves undervaluation on the basis of an instance which was not cited in the show-cause notice. That denies an adequate opportunity to the party concerned to defend its position against the compulsory acquisition on the basis of undervaluation. Thus, the authorities must disclose comparative instances of sales showing under- valuation and it is not for the assessee to seek such information. JUDGMENT H.L. Gokhale, J.-This writ petition seeks to challenge the order dated January 27, 1994, passed by the members of the Appropriate Authority under section 269UD(1) of the Income-tax Act, 1961. The petition was admitted on June 7, 1997, and the parties were directed to maintain status quo in the meanwhile. Subsequently, a reply has been filed by Mr. V. V. Nagarkar, Income-tax Officer, in the office of the appropriate authority on October 6, 1997. The petitioners have filed rejoinder. The petitioners Nos. 1 to 3 are owners of a plot of land situated at Chinchwad, Pune, bearing survey No. 128, Hissa No. 2, admeasuring 1,67,677 square feet. The first three petitioners entered into an agreement of development with petitioner No. 4 on September 22, 1993, for development of the property to the extent of 54,000 square feet thereof. The price agreed for the development of this part of 54,000 square feet was Rs. 54,54,000. Thus, the accepted rate was Rs. 101 (rupees…

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