In Brief
The Delhi Development Authority sought to collect unearned increase and conversion charges from an auction-purchaser who had acquired a leasehold property through public auction after the Government acquired the original lessee's rights under Income Tax Act Section 269UD. The Supreme Court held that the auction-purchaser was not liable for unearned increase (since the property was auctioned at market value and unearned increase had already been paid at acquisition), and that the Sale Deed conveyed only leasehold rights, not absolute ownership. However, the Court ordered the DDA to process the conversion application. The writ petitioner's appeal for refund of conversion charges was disposed of upholding the Division Bench, while the DDA's appeal was dismissed.
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