Case Law Details
PCIT Vs L And T SUCG JV CC27 (Delhi High Court)
Introduction: The Delhi High Court recently rendered a significant judgment in the case of PCIT vs L&T SUCG JV CC27, addressing the question of whether government shareholders should be automatically considered related parties. The case pertains to the Assessment Year 2014-15 and revolves around a penalty order issued under Section 271AA of the Income Tax Act, 1961. This article delves into the details of the judgment, analyzing the key arguments and the court’s conclusions.
Detailed Analysis:
The appellant/revenue filed an appeal challenging the order of the Income Tax Appellate Tribunal (ITAT) dated 28.10.2020. The central issue before the Tribunal was the validity of the penalty order dated 27.09.2018, imposed on the respondent/assessee under Section 271AA of the Income Tax Act.
The penalty was linked to the respondent’s failure to report transactions related to the purchase of equipment from Shanghai Pudong Machinery Complete Equipment Co. Ltd. (SPMCEC L) under Section 92E of the Act. The Commissioner of Income Tax (Appeals) had upheld the penalty, emphasizing the non-disclosure and lack of record maintenance by the respondent.
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