M/S SEVEN STAR DEVELOPERS,PUNE vs. INCOME-TAX OFFICER, PUNE

This assessee’s appeal for assessment year 2015-16 arises against the CIT(A)-4 Pune’s order dated 26.02.2020 passed in case no. PN/CIT(A)-4/Ward-6(2),Pune/177/2017-18 involving proceedings u/s 143(3) of the Income Tax Act, 1961; in short the Act. Heard both the parties. Case file perused.

It emerges at the outset that instant appeal suffers from 378 days delay in filing. I find that the CIT(A) has passed his lower 26.02.2020 which followed outbreak of Covid-19 Pandemic during which the assessee filed the instant appeal on 22.11.2021. The Revenue could hardly dispute that hon’ble apex court latest directions in Cognizance for Extension of Limitation, 438 ITR 296 (SC) read with judgment in Cognizance for Extension of Limitation, 432 ITR 206 (SC) dated 08-03-2021 and 421 ITR 314 have made it clear that the lockdown periods between 15.03.2020 to 14.03.2021 shall extend excluded from all prescribed limitations. I therefore condone the impugned delay neither intentional nor deliberate. 3. Coming to the assessee’s former substantive ground that both the learned lower authorities have erred in law and on facts in making section 43CA addition of Rs.12,20,150/-, Mr. Desai could hardly dispute that the same represents less than 10% difference between the actual sale price vis-à-vis SRO rates of the twin flats in “Avnish Regency” project. 4. Mr. Desai vehemently argued at the Revenue’s behest that the foregoing twin tolerance margins do not carry any retrospective effect. I find no reason to accept the instant argument as section 43CA applies in an instance of “transfer of assets other than capital assets in certain cases” which is pari materia to section 50C