IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND MS. ASTHA CHANDRA, JUDICIAL MEMBER ITA Nos.2023 and 2011/PUN/2024 Assessment years : 2014-15 and 2016-17 DCIT, Circle – 7, Kolte Patil Integrated Townships Limited Pune S.No.74, Marunji Hinjewadi, Marunji Vs.

Kasarsai Rao, Wakad BO Man, Pune – 411057 PAN: AABCI5807K (Appellant) (Respondent)

Assessee by : Shri Nikhil S Pathak Department by : Shri Amol Khairnar CIT-DR Date of hearing : 06-01-2025 Date of pronouncement : 10-03-2025

O R D E R

PER R. K. PANDA, VP :

The above two appeals filed by the Revenue are directed against the separate orders dated 02.08.2024 of the Ld. CIT(A) / NFAC, Delhi relating to assessment years 2014-15 and 2016-17 respectively. Since identical grounds have been raised by the Revenue in both these appeals, therefore, for the sake of convenience, these were heard together and are being disposed of by this common order.

2. First we take up ITA No.2023/PUN/2024 for assessment year 2014-15 as the lead case. Facts of the case, in brief, are that the assessee is a company engaged in real estate business. It filed its return of income on 18.08.2014 declaring total income of Rs.107,78,02,630/-. The assessment was completed u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) on 22.12.2017 determining the total income of the assessee at Rs.1,07,78,02,630/- where the Assessing Officer made addition of Rs.16,24,476/- on account of notional rent from house property.

3. Subsequently, the Assessing Officer reopened the case as per the provisions of section 147 by issuing notice u/s 148A(d) of the Act on 25.07.2022 by recording as under:

―GOVERNMENT OF INDIA MINISTRY OF FINANCE INCOME TAX DEPARTMENT OFFICE OF THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 7, PUNE PAN: Assessment Year: Dated: DIN & Order No AABCI5807K 2014-15 25/07/2022 ITBA/COM/F/17/2022-

23/1044045890(1)

Sir/Madam/M/s Subject: Proceedings u/s 148A(d) in consequence to Hon'ble SC Order dated

04.05.2022-Order

01. Brief Facts:-

The assessee, Mis Kolte Patil Integrated Townships Ltd. (PAN AABCI5807K) is a Company. In this case, a notice u/s 148 for AY 2014-15 was issued on 23/06/2021. On the basis of information in possession of the AO after following the provisions of Taxation and Other laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (hereinafter referred to as 'TOLA) and as per the CBDT Notification No.20 dated 31-03-2021 and subsequent Notification No. 38 dated 27-04-2021 according to which the time limit for issue of notice u/s 148 was extended to 30- 04-2021 and 30-06-2021 respectively. The above notice was issued after obtaining the prior approval of the competent Authority as per the prevailing provisions of section 151 of the IT Act, 1961. The basis for issue of notice u/s 148 was as under- "On perusal of the case record, it is seen from Balance sheet, the outstanding long term debt as on 31st March 2014 was at Rs. 197,93,18,564/- which included term loan of Rs.16,50,00,000/-. The assessee has shown work-in-progress of Rs. 396,30,86,527/- as on 31st March 2014 as against Rs. 361,84,35,789/- on 31st March 2013 indicating net increase of WIP (closing stock) of Rs. 34,46,50,738/- Further it is seen that, the assessee had incurred expenditure of Rs. 282,40,87,421/- (i.e. opening WIP of Rs. 361,84,35,789 cost incurred during the year of Rs. 327,42,32,668/- closing WIP of Rs. 396,30,86,527-cenvat credit of Rs. 10,54,94,659) on cost of sales (construction) during the year and it is exclusive of finance cost.

02. Decision of Hon'ble Supreme Court of India:

The Hon'ble Supreme Court of India in Civil Appeal No.3005/2022 in the case of Union of India & ors Vs. Ashish Agarwal and others dated 04-05-2022. As per para 10 of the above decision, Hon'ble Apex Court has directed to treat all the notices issued u/s 148 after 1-4-2021 (as per provisions of section 148 prior to 31- 03-2021) as notice u/s 148A(b) and directed to provide