| COURT: | P&H High Court |
| CORAM: | G. S. Sandhawalia J., S. J. Vajifdar CJ |
| SECTION(S): | 4, 45 |
| GENRE: | Domestic Tax |
| CATCH WORDS: | apportionment of lump-sum consideration |
| COUNSEL: | Radhika Suri |
| DATE: | May 15, 2015 (Date of pronouncement) |
| DATE: | May 27, 2015 (Date of publication) |
| AY: | 1994-95 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| Where the agreement between the parties (for sale of shares) indicates that the lump-sum consideration was in respect of two or more promises (i.e. sale of shares & non-compete covenant), it is liable to be bifurcated and apportioned between each of the assets (Vodafone distinguished) | |
It is difficult to understand how the mere fact that the parties have not apportioned the consideration between the two assets which were being dealt with by this agreement can make any difference to the rights of the parties. The position might have been different if the market value of the shares could not be ascertained. Then it might be said that it is difficult to put a proper value upon the shares and to put a proper value for the consideration. But when the market value is available and when it is known for what price these shares could be purchased or sold, there is no difficulty whatsoever in the apportionment
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