https://www.taxtmi.com/caselaws?id=768018 Forfeiture of an earnest money deposit under Rule 58 of the Second Schedule to the Income-tax Act is discretionary, not automatic. Unlike Rule 9(5) of the Security Interest (Enforcement) Rules, Rule 58 permits forfeiture only where the Tax Recovery Officer considers it fit, after sale expenses are defrayed. The extent of forfeiture must reflect actual or assessable loss and cannot operate as a windfall for breach. Full forfeiture without exercising discretion or hearing the bidder was unsustainable, requiring fresh determination after a hearing. The bidder's alleged COVID-19 impediment to timely payment was not established. en-us Thu, 27 Mar 2025 00:00:00 +0530 Mon, 01 Sep 2025 10:29:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=768018 Forfeiture of an earnest money deposit under Rule 58 of the Second Schedule to the Income-tax Act is discretionary, not automatic. Unlike Rule 9(5) of the Security Interest (Enforcement) Rules, Rule 58 permits forfeiture only where the Tax Recovery Officer considers it fit, after sale expenses are defrayed. The extent of forfeiture must reflect actual or assessable loss and cannot operate as a windfall for breach. Full forfeiture without exercising discretion or hearing the bidder was unsustainable, requiring fresh determination after a hearing. The bidder's alleged COVID-19 impediment to timely payment was not established. Case-Laws SEBI Thu, 27 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=768018