Interest Awarded After Tax Department Retained Matured KVPs Despite Settlement Payment

Pradeep Misra Vs UOI & Ors. (Delhi High Court) In Delhi High Court, the petitioner sought compensation for loss of interest arising from the delayed release of seized Kisan Vikas Patras (KVPs) and Indira Vikas Patras (IVPs) by the Income Tax Department. The case arose after a search conducted on 21.01.1997 under Section 132 of the Income Tax Act, 1961, during which KVPs, IVPs, fixed deposits, cash, and jewellery were seized from the petitioner. An assessment order dated 28.07.1999 raised a tax demand of Rs. 2,24,65,638/-, following which the petitioner approached the Settlement Commission ...