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The Tax Publishers CIT v. Hemal Raju Shete [ITA No. 1715/PN/2015, dt. 18-3-2016] : 2016 TaxPub(DT) 2102 (Bom-HC) Deferred consideration in capital gains *Facts:* Assessee along with other co-owners of shares of a group called Unisol had sold their shares to one RKHS for an overall consideration of 20 crores. The consideration was not to be received upfront but over the subsequent 4 years. Upfront payment of 2.70 crores out of which the share of the assessee was offered as capital gain and Section 54EC benefit was claimed. Assessing Officer taxed the deferred consideration as well and thereby taxed the balance in the said AY upfront. On appeal Commissioner (Appeals) and ITAT reversed the finding of the assessing officer. On further appeal: Held by the high court that the deferred consideration of Rs. 17.30 crores was subject to various contingencies and performance of the group Unisol post the share transfer, thus no income accrued in current year on the same. In favour of the assessee.

The Tax Publishers

CIT v. Hemal Raju Shete [ITA No. 1715/PN/2015, dt. 18-3-2016] : 2016 TaxPub(DT) 2102 (Bom-HC)

Deferred consideration in capital gains

Facts:

Assessee along with other co-owners of shares of a group called Unisol had sold their shares to one RKHS for an overall consideration of 20 crores. The consideration was not to be received upfront but over the subsequent 4 years. Upfront payment of 2.70 crores out of which the share of the assessee was offered as capital gain and Section 54EC benefit was claimed. Assessing Officer taxed the deferred consideration as well and thereby taxed the balance in the said AY upfront. On appeal Commissioner (Appeals) and ITAT reversed the finding of the assessing officer. On further appeal:

Held by the high court that the deferred consideration of Rs. 17.30 crores was subject to various contingencies and performance of the group Unisol post the share transfer, thus no income accrued in current year on the same. In favour of the assessee.