This document provides a summary of recent legal landmarks in India. It lists 6 key legal cases or rulings with details including the authority, sections of law, key ratios or outcomes. The cases cover topics around taxation of the construction industry, deductions, definition of business vs profession, exemptions for charitable trusts, capital gains taxation, and tax deducted at source requirements. The document was sent by Anand Mehta & Co consultants to a client to update them on new legal precedents.

1. VOLUME NO.: LLAT/ 489 OF 2011-12 DATE: 16th May, 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 Mum ITAT 80IA, ITA Project completion method is the best method for accounting
construction industry. The income which is not yet accrued but
claimed as exempt under the provision, can be taxed if certain
procedural conditions of S 80IA are not fulfilled.
1.2 TIOL-230 Deduction Ferani Hotels
2.1 Jodh ITAT 44, ITA Even if a doctor carries out his activities on a large scale by
hiring other doctors in his nursing home, his activity will be
'profession' and not 'business' unless he becomes a passive
entrepreneur in relation to services
2.2 21 TM 76 Sp. Provision Sunil Chandak
3.1 JP ITAT 12, ITA If in any year, the gross receipts from the trade or commerce of
the Institution exceeds the limit stipulated in the second proviso
to section 2(15) of Rs. 10 lakhs or Rs.25 lakhs, as the case
may be, then in that year, the AO is empowered to examine
the allowability of exemption u/s 11 but the same has no effect
on granting the registration u/s 12AA of the Act.
3.2 21 TM 77 Ch.Trust Rajasthan Housing Board
4.1 Del ITAT 111, ITA None of the case laws or CBDT circular has held that
borrowings will not be allowed in investment transactions.
Investment in capital assets also can be carried out by way of
borrowed funds.
4.2 21TM82 Cap. Gain Narendra Gehlaut
5.1 ARA INTL 9, ITA When the 'A' is in the business of gathering, collating and
making available or imparting information concerning industrial
and commercial knowledge, experience and skill, the payment
received from the subscriber would be royalty in terms of
clause (iv) of Explanation 2 to S 9(1)(vi) of the Act - When the
'A' provides services of tracking social network and internet
through its Crawler programme, the fees paid for accessing the
same amounts to royalties – tax is deductible at source from
the payments made.
5.2 2012-TII-25 DTAA Thaughtbuzz Pvt.Ltd
6.1 Mum HC 194, ITA When at time of award of compensation S 194LA was not in
statute book, but it was, when compensation was paid, tax had
to be deducted while making payment
6.2 21TM 124 TDS Leela Bhagwan sing Advani
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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