INCOME TAX ACT, 1961

Section 261

Appeal (Supreme Court) - Delay of five and a half years - Condonation of -

Assessee filed this appeal against the judgment passed by High Court, whereby High Court had partly allowed the first appeals preferred by original claimants and had enhanced the amount of compensation for lands acquired. Assessee submitted that as such there was a delay of five and a half years in preferring the first appeals, it was submitted that assuming that High Court was justified in enhancing the amount of compensation at par with the other land owners, as there was a huge delay of five and a half years. High Court ought not to have saddled the interest liability for the period of delay upon assessee. It was submitted that in any case High Court was not justified in granting statutory benefits and interest on enhanced amount of compensation for period of delay. Held: The issue was no more res integra. Merely because at the time of condoning the delay no such condition was imposed that claimants should not be entitled to the interest on enhanced amount of compensation for the period of delay, assessee who was otherwise a public body could not be saddled with the liability to pay interest for the period of delay, which was not at all attributed to them. Under the circumstances, common judgment and order passed by High Court awarding the interest on the enhanced amount of compensation for the period of delay in preferring the appeals deserved to be quashed. The common judgment and order passed by High Court was modified to the extent of denying interest to original claimants on enhanced amount of compensation for the period of delay in preferring the appeals.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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