1. VOLUME NO.: LLAT/ 464 OF 2011-12 DATE: 3rd March, 2012
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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 147, ITA When the AO has received information from the
investigation wing that the 'A' had received share application
money from the entry providers, the initiation of proceedings
u/s 147 cannot be treated as illegal as at the stage of issuing
the notice u/s 148 the merits of the matter are not relevant
and the AO at that stage is required to form only a prima
facie belief or opinion that income chargeable to tax had
escaped assessment.
1.2 2012-TIOL-148 Reassessment Nova Promoters & Finlease
2.1 Del HC 45, ITA When a property purchased prior to 1981 is transferred to a
Trust in 1996, the Trust is entitled to indexed cost of
acquisition for the period after 1996 and not from 1981 on
sale of the property.
2.2 2012-TIOL-154 Cap.Gain Arun Shungloo Trust
3.1 Del-ITAT 195, ITA When loan is guaranteed by an entity mentioned in Article
11.3 of the India-Sweden DTAA, the interest thereon is
exempt from taxation in India in view of MFN clause in the
Protocol and in view of the provision in the treaty with
Ireland.
3.2 2012-TII-09 DTAA Idea Cellular Ltd.
4.1 Del ITAT 115A, ITA The `fees for technical services’ can be taxed on a net basis
is where the non-resident 'A' has a PE in India and such
fees for technical services is effectively connected with such
PE- the principle of consistency operates against law - S
44BB can be said to be a special provision having overriding
effect on S 115A of the Act.
4.2 2012-TII-18 Sp.Provision CGG Veritas Services SA
5.1 Del ITAT 35, ITA Expenses incurred by a subsidiary company on promotion of
brand of parent company are allowable on deferred basis.
5.2 2012-TIOL-126 Deduction Bacardi Martini India
6.1 Mad-HC 11, ITA When Revenue finds the objects of the society charitable at
the time of granting registration, it can invoke powers u/s
12AA(3) and cancel the same on the ground that it was
involved in sale and purchase of books, which cannot be
charitable.
6.2 2012-TIOL-156 Ch.Trust Sarvodaya Ilakkiya Pannai
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.
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