K. BASAVARAJAPPA vs TAX RECOVERY COMMR., KARNATAKA

The Supreme Court addressed the issue of locus standi under Rule 60 of the Second Schedule to the Income Tax Act, 1961, determining whether the appellant had the right to challenge the auction sale of property belonging to a defaulter. The Court held that the appellant, having entered into an agreement to purchase the property and having made a deposit towards tax dues, had sufficient interest to file the application. Consequently, the Court ruled in favor of the appellant, allowing the appeal and setting aside the auction sale.