Bombay HC Stays TDS Demand on TDR Compensation under Section 194LA

Pimpri Chinchwad Municipal Corporation Vs ITO (Bombay High Court) The Bombay High Court heard a writ petition filed by Pimpri Chinchwad Municipal Corporation (PCMC) seeking to quash orders passed under Sections 201 and 201(1A) of the Income Tax Act, 1961, along with the related demand notice under Section 156, all dated 31 March 2025. The petition also challenged a penalty notice under Section 274 read with Section 271C dated 22 April 2025, and the penalty order dated 30 September 2025. Background of the Case The Income Tax Department had treated PCMC as an assessee in default for not deductin...