2013 (7) TMI 960

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.... term capital gains and the same deleted by the Ld.CIT(A). 3. Briefly stated, the assessee, an individual while declaring a total income of Rs. 11,68,470/- had shown a long term capital gain of Rs. 42,38,674/- on account of sale of 75000 shares of Unisol Infrastructures Ltd and thereby claimed the exemption u/s 54EC by investing the sale proceeds in capital bonds of SIDBI. In the assessment framed u/s 143(3), the AO after perusing the relevant agreement dated 25.01.2006 pertaining to the transfer of shares found that the said agreement grants the absolute right to the assessee as well as the other transferors to receive the specified amount in a deferred manner with the nomenclature of 'initial' and 'deferred' consideration being employe....

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....in support of the proposition that for the purpose of calculating the capital gains, 'full value consideration' is to be taken into account as per the provisions of the Income Tax Act. 5.1 On the other hand, the Ld. Senior Counsel for the assessee has drawn our attention to clause 3 of the agreement which deals with 'consideration' and stated that as per the terms of clause 3.2, Rs. 20 croes is the maximum limit which serves as a cap to that effect that the aggregate of the initial and deferred consideration shall not exceed the cap of Rs. 20 crores. To substantiate the position that the assessee may or may not get the deferred consideration, the Ld. Senior Counsel has demonstrated how the deferred consideration has to be worked accordin....