Property Plus Realtors Vs Union of India & Ors. (Delhi High Court)
Delhi High Court has set aside a penalty of ₹14.63 crore imposed on Property Plus Realtors under Section 271DA of the Income Tax Act, 1961, for alleged violations of Section 269ST. The court ruled that the order, issued on October 17, 2024, was beyond the statutory limitation period prescribed under Section 275(1)(c) of the Act. It held that the penalty proceedings should be considered initiated from the date the reference was received by the Additional Commissioner of Income Tax—January 18, 2023—not a later date claimed by the Revenue.
The case arose from an income tax search conducted on March 2, 2022, on the Gaursons Group and related entities, including Property Plus Realtors. During scrutiny, the Assessing Officer (AO) found alleged violations of Section 269ST, which restricts cash transactions exceeding ₹2,00,000. The AO forwarded a penalty recommendation to the Additional Commissioner on January 18, 2023. However, no immediate action was taken, and the penalty notice was issued only in April 2024, with the final order passed in October 2024. The petitioner contended that the penalty order was time-barred as it was issued more than six months after the initiation of penalty proceedings, as per Section 275(1)(c).
