Case Law Details
PCIT Vs Thapar Homes Ltd. (Delhi High Court)
Introduction: The Delhi High Court, in the case of PCIT vs. Thapar Homes Ltd. for Assessment Year 2008-09, delivered a crucial verdict emphasizing the necessity of issuing notices under Section 274 of the Income Tax Act before the limitation period expires. This detailed analysis unpacks the legal proceedings, key contentions, and the court’s rationale in rendering this landmark judgment.
Detailed Analysis:
1. Background of the Case: The case pertains to penalty proceedings initiated against Thapar Homes Ltd. for violating Section 271D of the Income Tax Act during AY 2008-09. The penalty order faced a challenge based on the argument that it was barred by limitation.
2. Section 271D and 269SS: Section 271D is intricately linked with Section 269SS and mandates penalties for contraventions. The provisions stipulate that loans or deposits should be accepted only through specified means, such as account payee cheques or electronic credit systems.
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