Appropriate Authority, Income-Tax ... vs R. Shanmuganathan

The Supreme Court addressed the issue of interest on the purchase price refunded in a compulsory acquisition under Chapter XX-C of the Income-tax Act, 1961. The Court upheld the Single Judge's order for interest but reduced the rate from 15% to 7.5%, acknowledging that the respondents had benefited from the purchase price while the appellant was deprived of the right to sell the property. The appeals were disposed of with no order as to costs.