Tribunal held that part consideration was to be paid, on obtaining waiver of Minimum Guarantee Throughput (MGT) from Port Trust till transfer of terminal undertaking by assessee to KCPL. Part consideration retained by KCPL was never paid to the assessee as the assessee was not able to get waiver of Minimum Guarantee Throughput (MGT) from Port Trust- Consideration which was not received cannot be assessed as consideration received for sale.AO was directed to verify and decide in accordance with law. (AY. 2007-08)
Konkan Storage Systems (P.) Ltd. v. ACIT (2018) 173 ITD 248 (Bang.)(Trib.)
S. 50B : Capital gains–Slump sale–Full value of consideration-Conditional sale -Part consideration would be paid on obtaining waiver of Minimum Guarantee Throughput (MGT) from Port Trust till transfer of terminal undertaking by assessee to KCPL-Amount retained by KCPL was never paid to the assessee as the assessee was not able to get waiver of Minimum Guarantee Throughput (MGT) from Port Trust. Consideration which was not received cannot be assessed as consideration received for sale-AO was directed to verify and decide in accordance with law. [S. 45, 48]