1. VOLUME NO.: LLAT/ 450 OF 2011-12 DATE: 14th January, 2012
­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
Dear Client,
We have pleasure in listing below some of the recent legal landmarks.
SR. AUTHORITY SECTION / RULES / RATIO(S)
NO. CITATIONS SUBJECT CASE(NAME OF ASSESSEE)
1.1 Del – HC 36, ITA Dividend received in respect of redeemable preference
shares does not amount to profits derived from providing
long term finance within meaning of S 36(1)(viii), read with
clause (h) of Explanation to said S.
1.2 16 TM 251 Other Deduction National Co-operative Development Corp
2.1 Del – HC 2(22), ITA An 'A' who is not a shareholder of company, from which he
received a loan or an advance, cannot be treated as being
covered by definition of word 'dividend' as provided in S
2(22).
2.2 16 TM 292 Deemed Div Navyug Promoters
3.1 Del – ITAT 37(1), ITA Where by making payment of royalty to parent company, 'A'
was highly benefited in respect of profitability and growth of
its business, a part of said expenditure could not be
disallowed on ground that it was not incurred wholly and
exclusively for purpose of business .
3.2 16 TM 280 Other Deduction Nestle India
4.1 Mum – ITAT 36, ITA Where revenue authorities did not record a finding on 'A's
plea that it had borrowed money to buy shares for acquiring
controlling interest in company and, thus interest on amount
so borrowed was to be allowed as deduction, matter was to
remanded back for disposal afresh .
4.2 16 TM 278 Other Deduction Questar Investments
5.1 Allbd HC 153A, ITA One cannot interpret second proviso to S 153A in a manner
that where assessment or reassessment proceedings are
complete, and matter is pending in appeal in Tribunal, entire
proceedings will be abated.
5.2 16 TM 232 Assessment Shaila Agarwal
6.1 Chenn – ITAT 45, ITA Sale and purchase of certain shares took place between
two companies belonging to same group, in view of fact that
those shares were not quoted on stock exchange, their sale
price had to be fixed through negotiated settlement and,
long term capital loss calculated on basis of said selling
price was to be allowed.
6.2 16 TM 282 Cap. Gain Shriram Transport Finance Co
Please let us know if you need any further information on these.
Thanking you and assuring you of our best services at all times.
Yours Faithfully,
For Anand Mehta & Co .,
(CONSULTANTS) PVT. LTD.
Anand V. Mehta
DIRECTOR
A mind of a consultant with a heart of a friend.
Mumbai Office- 334, Mulratna 1st Floor Narshi Natha Street Masjid (W) Mumbai 40009
Tel -022- 23400882 • Fax-022-23420195 • E-mail: amcon.mumbai@amcount.com
Pune Office –B/5 Shardaram Park, 34, Sasson Road, Near Jehangir Hospital, Pune - 411 001
Tel-020 6401 3124 • Fax 020- 30521223•E-mail: amcon.pune@amcount.com
Gram-MATERPLAN <--> MASTERPLAY
Website:www.amcount.com