SRI NANDLAL TEJMAL KOTHARI vs THE INSPECTING ASSISTANT COMMISSIONER OF INCOME TAX & ORS.

The Supreme Court reiterated the principles established in C.B. Gautam vs. Union of India regarding the necessity of recording reasons for administrative decisions, emphasizing that such reasons must be communicated to the aggrieved party to prevent arbitrary actions by authorities. The Court directed that in cases of compulsory purchase of property, the Central Government must pay the seller the apparent consideration plus 9% interest from the date of the impugned order. Additionally, it clarified that the period for reckoning under Section 269-UD(1) should be based on the disposal date of pending matters or the date of vacating stay orders, as applicable.