This document provides a summary of recent legal landmarks in 6 sections. Each section includes the authority, section or rule, and a brief ratio or key point from a relevant case. For example, section 1 discusses a Mumbai ITAT case which found that payments received by a non-resident for executing project management contracts should be taxed as fees for technical services under the India-Japan tax treaty. The document was sent by Anand Mehta & Co. consultants to a client to update them on recent legal rulings.

1. VOLUME NO.: LLAT/ 524 OF 2012-13 DATE: 12h July, 2012
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Dear Client,
We have pleasure in listing below some of the recent legal landmarks.
SR. AUTHORITY SECTION / RATIO(S)
NO. CITATIONS RULES / SUBJECT CASE(NAME OF ASSESSEE)
1.1 MUM ITAT 9, ITA Payment received by non-resident for executing Project
Management Contracts is to be taxed as 'fee for technical
services'.
1.2 22 TM 18 DTAA Toyo Engineering Corpn
2.1 HP HC 4, WTA Asset from which 'A' was deriving rental income would be
deemed to be 'belonging to' 'A' even if legal ownership of said
property had not yet been passed to 'A'
2.2 22 TM 32 Deemed Wealth H.P. Small Industries & Export Corp
3.1 KOL ITAT 64, ITA “A” and his minor children are each entitled to separate
investment and deduction limits of Rs.50 lakhs u/s 54EC; and
clubbing of LTCG u/s 64(1A) to be made after allowing
deduction to each child upto Rs. 50 lakhs
3.2 22 TM 34 Clubbing Rajeev Goyal
4.1 DEL ITAT 14A, ITA Disallowance u/s 14A cannot exceed expenditure actually
claimed by 'A'
4.2 22 TM 61 Busi. Exp Gillette Group India (P.) Ltd
5.1 HYD ITAT 28, ITA Where a person buys and sells land or makes investments as
business to make profit, gains arising from such transactions
will be assessed as business income
5.2 22 TM 86 Busi. Inc Maheswari Mega Ventures Ltd
6.1 DEL ITAT 11, ITA An evidence which is not admissible in a court of law can be
admitted in tax proceedings and hence benefits of S 12A
cannot be disallowed in a case where some documents relating
to application of income is not registered - the amount received
as corpus can be added as unexplained cash credit merely
because it does not come directly from the coffers of the donor
and the donor in some other proceedings has denied the
making of corpus particularly when no opportunity to cross
examine the donor has been granted to the 'A' trust.
6.2 12-TIOL-305 Ch.Trust M/s Chiranjiv Charitable Trust
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
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