9911796707
TMI Blog2012 (12) TMI 684X X X X Extracts X X X X X X X X Extracts X X X X ..... ns in a company known as Unisol Infraservices Pvt. Ltd. as under : 1) Raju Shete 1,19,000 shares (39.66%) 2) Raju Shete (HUF) 2,500 shares (.84%) 3) Indira R. Shete 1,03,500 shares (34.50%) 4) Hemant Shete 95,000 shares (25%) During the year under consideration, M/s Radhakrishna Hospitality Services Pvt. Ltd. purchased all the shares of Unisol Infraservices Pvt. Ltd. from the four shareholders including the assessees in the present cases. As per the agreement for sale of shares, Radhakrishna Hospitality Pvt. Ltd. paid initial consideration of Rs.2.70 crores to all the four owners of the said shares including the assessees. Taking into consideration their respective shares in the said initial consideration, the assessees ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d CIT to clause 3.2 of the agreement for sale of shares was erroneous. It was submitted that initial consideration of Rs.2.70 crores only was agreed for sale of entire share capital of Unisol Infraservices Pvt. Ltd. and the deferred consideration was to be paid depending on the financial position of the said company for the subsequent four financial years ending on 31st March,2007, 31st March, 2008, 31st March, 2009 and 31st March, 2010. It was submitted that deferred consideration thus was not certain and clause 3.2 of the agreement merely provided that initial consideration and the deferred consideration shall not exceed Rs.20 crores. It was submitted that the amount of Rs.20 crores indicated in clause 3.2 of the agreement thus was not th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompulsory acquisition of property where compensation is enhanced subsequently and the same, therefore, were not applicable in the facts of the assessee's case. He held that the assessment orders passed by the AO u/s 143(3) accepting the capital gain as declared by the assessees thus were erroneous and prejudicial to the interest of the Revenue and setting aside the assessments, he directed the AO to recompute the income of the assessee from capital gain on sale of shares by adopting proportionate amount of sale consideration of Rs.20 crores by the orders passed u/s 263, which are impugned by the assessees in the present appeals filed before the Tribunal. 4. The learned counsel for the assessees invited our attention to the relevant clause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt of capital gain arising from sale of shares of Unisol Infraservices Pvt. Ltd. in the cases of other two owners, namely, Indira R. Shetea and Hemal Shete taking into consideration the total sale consideration at Rs.20 crores and the addition so made has been deleted by the learned CIT(Appeals) in the cases of both these persons. He invited our attention in this regard to the relevant orders of the learned CIT(Appeals) placed at page No.29 to 34 and 35 to 46 of his paper book to show that a similar issue has been decided in favour of the assessee by the learned CIT(Appeals) on merit. 5. The learned DR, on the other hand, strongly relied on the impugned orders of the learned CIT passed u/s 263 in support of the Revenue's case and submitte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssments made by the AO u/s 143(3) as erroneous as well as prejudicial to the interest of the Revenue. As submitted by the learned counsel for the assessee, the total deferred consideration of Rs.2.80 crores only was finally received for sale of shares from Radhakrishna Hospitality Services Pvt. Ltd. in subsequent two years relevant to assessment years 2008-09 and 2009-10 by all the four owners of the shares including the assessees as per the formula given in the agreement which was based on financial position of Unisol Infraservices Pvt. Ltd. for the subsequent four years and the same was offered to tax as capital gain by them in those years which, in our opinion, was as per the provision of section 45(5) although the same applicable in cas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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