2002 (1) TMI 4 - SC - Income Tax

Purchase Of Immovable Property By Central Government - Whether, the department is entitled to retain the sum of Rs. 47,01,000 which had been deposited pursuant to the auction sale when the compulsory purchase itself has been set aside - Held, no - Department is directed to deposit this amount of Rs. 47,01,000 along with interest at the rate of nine per cent.

Summary

The Supreme Court ordered the Department to refund Rs.47,01,000 along with interest to Shivkumar, deposited after a compulsory purchase that was later set aside. The Department must deposit the amount with the Karnataka High Court within eight weeks. Additionally, Rs.1,55,00,000 deposited in a second round of compulsory purchase should be refunded to Shivkumar with interest.