L K TRUST,BENGALURU vs. DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 1(1), BENGALURU

ITA 1147/BANG/2025Status: DisposedITAT Bangalore09 June 2026AY 2018-1950 pages
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What were the facts?

The assessee, a trust engaged in real estate, entered into a Joint Development Agreement (JDA) to develop land. The Assessing Officer (AO) proposed to consider the builder's cost of construction as the sale consideration for the assessee's share of built-up area, deviating from the assessee's valuation based on stamp duty and judicial precedents.

What did the Tribunal hold?

The Tribunal held that the AO erred in adopting the builder's cost of construction as the sale consideration. It noted that the assessee's reliance on judicial precedents where the revenue's approach was rejected was relevant, and the AO's attempt to distinguish the cases based on the availability of verifiable data was not sufficiently established.

What were the issues?

Whether the cost of construction incurred by the developer should be considered as the full value of consideration for the landowner's share in a JDA, and whether judicial precedents on similar matters are distinguishable.

Which sections of the Income-tax Act were involved?

Section 153A,Section 50D,Section 50C,Section 133(6),Section 131

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH, BANGALORE

Before: SHRI WASEEM AHMED & SHRI SOUNDARARAJAN K

For Appellant: Shri A Shankar, Sr. Advocate
For Respondent: Shri Shivanad Kalkeri, CIT
Hearing: 25.05.2026Pronounced: 09.06.2026

PER WASEEM AHMED, ACCOUNTANT MEMBER:

These cross appeals filed by the assessee and the Revenue are against the order of the ld. CIT(A)–11, Bengaluru vide order dated

ITA No.1147 & 1375/Bang/2025 21/03/2024 in DIN No. ITBA/APL/M/250/2024-25/1074816064(1) for the assessment year 2018-19. First, we take up ITA No. 1147/Bang/2025, an appeal by the assessee.

2.

The assessee has raised as many as 10 grounds of appeal and multiple sub-grounds u

The order continues below.

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