JUDGMENT

Bharucha, J.-The Revenue is in appeal by special leave against the judgment and order of a Division Bench of the High Court of Gujarat. The judgment and order was passed on a writ petition filed by the first respondent in the following circumstances.

2. On 12th August, 1995, the second and third respondents entered into an agreement to sell to the first respondent immovable property situated in Ahmedabad for the sum of Rs. 47 lakhs. The appropriate authority of the Revenue came to the conclusion that the apparent consideration in respect of the said immovable property under the said agreement was less than the market value thereof by 15% or more. Accordingly, a notice dated 6th November, 1995 was issued to the respondents to show cause why the said immovable property should not be subject to pre-emptive purchase under Chapter XX-C of the Income Tax Act, 1961. The respondents showed cause, but the order of pre-emptive purchase was made by the appropriate authority. This order was challenged in the writ petition.

3. Before the High Court, it was contended that what had been transferred by the second and third respondents to the first respondent were their equal half shares in t