This document provides a summary of recent legal landmarks in India. It lists 6 key legal cases with details of the section/rules cited, key ratio decided, and case name. The cases cover topics around mutuality, business expenses, cash credits, transfer pricing, capital gains tax exemption limits, and dividend distribution tax. The document was sent by Anand Mehta & Co. consultants to inform a client about these important legal updates.

1. VOLUME NO.: LLAT/ 484 OF 2012-13 DATE: 8 th 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 HC 143(1), ITA The Principles of mutuality would apply when the
consideration has flowed from the members to the Society as
consideration for allowing the use of extra FSI.
1.2 2012-TIOL-238 Mutuality Jai Hind Chs
2.1 Del HC 37, ITA Any expenditure, whether it is capital or revenue in nature
cannot form subject matter of block assessment, though it
may be disallowed as capital expenditure in regular
assessment.
2.2 20 TM 234 Busi.Exp East India Syntex
3.1 Agra ITAT 68, ITA Bogus gift from a relative, out of ambit of S 56, will be taxable
u/s 68 .
3.2 20 TM 472 Cash Credits Alok Agrawal
4.1 Del HC 9, ITA "a" had neither any sale of software outside nor earned any
income from outside India and consumed all software in
house and, therefore, consultancy charges paid to foreign
company was to be disallowed and added back in taxable
income of "a".
4.2 20 TM 69 DTAA Artech Infosystems
5.1 Ahd ITAT 54EC, ITA It was the intention of the legislature that benefit u/s 54 EC be
restricted to Rs. 50L for an “a” per (AY). However, due to
peculiar drafting of the proviso a situation has arisen where
“a” who transfer their capital asset after 30th September of
the FY get an opportunity to make an investment of 50 L in
two different FY and are able to claim an exemption up to Rs.
1 crore.
5.2 20 TM 75 Cap.Gain Aspi Ginwala
6.1 AAR 115, ITA Only a genuine buyback is excluded from definition of
'dividend' by section 2(22)(iv) and exempt from DDT under
section 115O; a colourable buyback of will attract DDT.
6.2 20 TM 52 Sp. Provision A Mauritus
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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