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TMI Blog2013 (7) TMI 960X X X X Extracts X X X X X X X X Extracts X X X X ..... DR. S.T.M. PAVALAN, JM: This appeal filed by the Revenue is directed against the order of the Ld.CIT(A) - 18, Mumbai dated 24.12.2009 for the Assessment Year 2006-07. 2. The solitary issue arising out of the grounds of appeal relates to the addition of Rs. 4,48,54,923/- made by the AO on account of long term capital gains and the same deleted by the Ld.CIT(A). 3. Briefly stated, the assessee, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the alleged total consideration 'accrued' to the transferors by clubbing the initial consideration and deferred consideration and thereby assessed the capital gain at Rs. 4,91,94,923/- as taxable in the hands of the assessee. 4. On appeal, the Ld.CIT(A) deleted the impugned addition made by the AO as the deferred gain could not be taxed as the gain which was not received or accrued to the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... George Henderson & Co. Ltd [(1967) 66 ITR 622 (SC)] and the decision of the ITAT in the case of Mrs. Alpana Piramal vs. ITO [(2001) 76 ITD 375 (Mum)] 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 h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e agreement to tax is not tenable and the Ld.CIT(A) is rightly deleted the impugned addition. 6. We have heard both the parities and perused the material on record. The perusal of the provisions of the agreement indicates that the amount of Rs. 20 crore is the maximum amount that could be received by the assessee's group which comprises of initial consideration and the deferred consideration. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ratios in the said cases are applicable when the dispute relates to adopting the full value consideration vis-a-vis the sale value consideration which is not the case of the AO in this instant case as the maximum cap provided in the agreement cannot be equated neither with sale value consideration nor with the full value consideration since the said maximum cap is neither received nor accrued ..... X X X X Extracts X X X X X X X X Extracts X X X X
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