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VOLUME NO.: LLAT/ 469 OF 2011-12                                                                  DATE: 10th March, 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     MUM – ITAT             36, ITA                      A' invested borrowed funds in the shares of subsidiary company to
                                                            have control over that company : Interest on borrowed funds
                                                            allowable as deduction.
1.2     244 CTR 226            Deduction                    Phil Corporation Ltd.


2.1     DEL HC                 234A, ITA                    Taxes paid after the end of the previous year but before the due
                                                            date of filing of return are to be considered while calculating interest
                                                            u/s. 234A

2.2     309 ITR 231            Interest                     Pranoy Roy & Anr.

3.1     MUM – ITAT             234B, ITA                    Advance tax : Interest u/s.234B : A.Y. 1991-92 : 'a' claimed
                                                            exemption u/s.47(v) on sale of capital assets to holding company
                                                            owning 100% shares : Reduction in holding to 43% in subsequent
                                                            year : Exemption withdrawn as per section 47A : 'A' not liable to
                                                            interest u/s.234B.

3.2     243 CTR 229            Interest                     Prime Securities Ltd.


4.1     DEL HC                 15, HS Act                   Daughter-Does not include 'Step daughter' – Hindu Succession Act,
                                                            1956, Section 15(1)(a)

4.2     AIR 2011 Del 170 Hindu Law                          Raj rani & Anr.

5.1     MAD HC                 50C, ITA                     Title of the property was in dispute and there were proceedings by
                                                            and against various parties in various legal forums. CIT(A) asset in
                                                            directing AO to reduce total sale consideration as per stamp
                                                            valuation authority by a certain amount towards encumbrance it was
                                                            for the VO and not CIT(A) to take the same and in and arrive at
                                                            valmer

5.2     ITA NO 977             Sp.Provision                 Royal Stitches (P) Ltd.

6.1     Karn HC                45(2), ITA                   The 'a' partnership firm, owned immovable, property, converted the
                                                            same into stock-in-trade in the year 1987-88. They entered into and
                                                            agreement, under which the said company was expected to develop
                                                            the property, construct flats and give to the 'a' their share in the
                                                            constructed building. The 'a' was assessed to income-tax regularly.
                                                            In the year 1988-89 when this agreement was entered into, the
                                                            Revenue did not treat it as a transfer and called upon the 'a' to pay
                                                            tax. However, the claim for capital gains is made only when the 'a'
                                                            executed registered sale deeds in favour of the purchaser of the
                                                            flats in the financial year 1992-93. At the relevant date for applying
                                                            cost inflation index was 1992-93 and not 1987-88

6.2     40(I) ITCL 330         Capital Gain                 Rudra Industrial Commercial Corporation


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

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LL 469

  • 1. VOLUME NO.: LLAT/ 469 OF 2011-12 DATE: 10th March, 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 MUM – ITAT 36, ITA A' invested borrowed funds in the shares of subsidiary company to have control over that company : Interest on borrowed funds allowable as deduction. 1.2 244 CTR 226 Deduction Phil Corporation Ltd. 2.1 DEL HC 234A, ITA Taxes paid after the end of the previous year but before the due date of filing of return are to be considered while calculating interest u/s. 234A 2.2 309 ITR 231 Interest Pranoy Roy & Anr. 3.1 MUM – ITAT 234B, ITA Advance tax : Interest u/s.234B : A.Y. 1991-92 : 'a' claimed exemption u/s.47(v) on sale of capital assets to holding company owning 100% shares : Reduction in holding to 43% in subsequent year : Exemption withdrawn as per section 47A : 'A' not liable to interest u/s.234B. 3.2 243 CTR 229 Interest Prime Securities Ltd. 4.1 DEL HC 15, HS Act Daughter-Does not include 'Step daughter' – Hindu Succession Act, 1956, Section 15(1)(a) 4.2 AIR 2011 Del 170 Hindu Law Raj rani & Anr. 5.1 MAD HC 50C, ITA Title of the property was in dispute and there were proceedings by and against various parties in various legal forums. CIT(A) asset in directing AO to reduce total sale consideration as per stamp valuation authority by a certain amount towards encumbrance it was for the VO and not CIT(A) to take the same and in and arrive at valmer 5.2 ITA NO 977 Sp.Provision Royal Stitches (P) Ltd. 6.1 Karn HC 45(2), ITA The 'a' partnership firm, owned immovable, property, converted the same into stock-in-trade in the year 1987-88. They entered into and agreement, under which the said company was expected to develop the property, construct flats and give to the 'a' their share in the constructed building. The 'a' was assessed to income-tax regularly. In the year 1988-89 when this agreement was entered into, the Revenue did not treat it as a transfer and called upon the 'a' to pay tax. However, the claim for capital gains is made only when the 'a' executed registered sale deeds in favour of the purchaser of the flats in the financial year 1992-93. At the relevant date for applying cost inflation index was 1992-93 and not 1987-88 6.2 40(I) ITCL 330 Capital Gain Rudra Industrial Commercial Corporation 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