COMMISSIONER OF INCOME TAX Vs. RAKESH PD SINGH

JUDGEMENT

(1.) THIS appeal under section 260A of the Income Tax Act, 1961, has been preferred on behalf of the Commissioner, Patna, and another against the order of the Appellate Tribunal in I. T. A- No. 78 (Patna) of 1996, whereby, the order of the Commissioner (Appeals) was reversed.

(2.) IN short the facts of the case are that the assessee's father, the late Shashi Bhushan Singh, had taken a land on lease from the Patna Regional Development Authority (hereinafter referred to as the "PRDA") at Mourya Lok Complex, after depositing the total bid money of Rs. 48.25 lakhs. Later, somehow or the other the lease agreement was cancelled by the P.R.D.A. due to certain objections raised by the State Government. Being aggrieved by such action of the P.R.D.A., a writ petition was filed before this court. Ultimately, the High Court after hearing the parties and having appreciated that in spite of the deposit of the total amount of Rs. 48.25 lakhs, the settlee was being un-necessarily harassed, directed the P.R.D.A. to pay interest at the rate of 12 per cent per annum from 23-12-1981, till August, 1986, within a period of six months from the date of receipt of the order. This is also not in dispute that the assessee and his mother who are the legal heirs of the late Shashi Bhushan Pd. Singh, received the amount of Rs. 60,37,662.80 as interest.