South Kanara Agriculturists Co-operative Marketing Society Ltd. Vs ACIT (ITAT Bangalore)
Ex Parte Dismissal Set Aside -Section 50C Addition of ₹27.80 Cr in JDA Dispute Remanded for Re-Examination
Bangalore Bench of Tribunal in the case of South Kanara Agriculturists Co-operative Marketing Society Ltd. Vs. ACIT, Circle 1(1), Mangalore (ITA No.525/Bang/2025, A.Y. 2014-15) has held that an appeal cannot be dismissed for non-prosecution and CIT(A) is bound to adjudicate on merits. Tribunal restored the matter to AO for fresh examination of a Joint Development Agreement (JDA) involving huge capital gain addition under section 50C.
Facts
The Assessee, a co-operative society engaged in wholesale & retail trading of agricultural products, filed its return of income declaring a loss of ₹2.35 crore. AO noticed that the Assessee had entered into a Joint Development Agreement dated 11.10.2013 with MA Smart Developers Pvt. Ltd. in respect of 90.50 cents of land
As per the JDA:
- Assessee was to receive ₹8 crore upfront as non-refundable deposit, and
- 30% share in the built-up area to be constructed.
For stamp duty purposes, property was valued at ₹28.39 crore. AO invoked section 50C, treated the stamp duty valuation as deemed consideration, allowed indexed cost of ₹58.87 lakh, and computed long-term capital gains of ₹27.80 crore, passing order u/s 143(3) dated 26.02.2016.
