Shree Sai Constructions Vs NFAC (ITAT Mumbai)
The Income Tax Appellate Tribunal (ITAT), Mumbai, in the matter of Shree Sai Constructions v. NFAC, Delhi (Income Tax Appeal No. 4616/MUM/2025, dated 30th September 2025), has set aside the orders of the lower authorities and restored the case to the file of the Assessing Officer (AO) for a fresh, de novo adjudication. The core issue revolved around significant additions made to the appellant’s income under the heads of capital gains arising from a Joint Development Agreement (JDA) and an alleged difference in property valuation, for the Assessment Year 2018-19.
The Tribunal’s decision was anchored in two primary findings: first, the condonation of a substantial delay in filing the appeal based on extraordinary personal and circumstantial hardship; and second, the necessity of affording the assessee a proper opportunity of being heard to present crucial facts regarding the non-applicability of capital gains tax.
Condonation of 458-Day Delay: The Principle of Sufficient Cause
The appeal was initially filed with a significant delay of 458 days. The assessee, a firm, presented an affidavit by Smt. Jaishree Ashok Khatri, a partner and widow of the late managing partner, outlining a series of severe adversities that collectively prevented the timely filing of the appeal.
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