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Sale price of shares cannot be apportioned towards transfer of controlling interest, where there is no express written understanding
Case Law Details
- Case Name
- Asstt. Commissioner of Income-tax, Circle-7 Vs M/s. R.K.B.K Fiscal Services Ltd (ITAT Kolkata)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2006- 07
- Courts
- ITAT Kolkata
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Background
• The taxpayer sold shares of Gujarat Ambuja Cements Ltd (“GACL”) under a share purchase agreement with Holcim Mauritius for a total consideration of Rs.105 per share.
• Further, as per Article 5 of the said agreement, the taxpayer was to receive Rs.1 5 per share towards non-compete undertaking which was included in the above sale consideration.
• The taxpayer also entered into a separate agreement for change in management control of GACL.
• The taxpayer obtained a valuation report whereby the valuer determined the value of non- controlling value of shar...
