VOLUME NO.: LLAT/ 514 OF 2012-13 DATE: 30th June, 2012 ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ Dear Client,

We have pleasure in listing below some of the recent legal landmarks.

SR. NO.

AUTHORITYCITATIONS

SECTION / RULES / SUBJECT

RATIO(S)CASE(NAME OF ASSESSEE)

1.1 DEL HC I 195, ITA If a holding company advances borrowed money to a subsidiary and the same is used by the subsidiary for some business purposes, the 'A' would be entitled to deduction of interest on its borrowed loans.

1.2 2012-TII-25 Busi. Inc Telsuo Mitera

2.1 BANG ITAT 147, ITA When the 'A' handed over the possession of the land to the developer and the developer changed after some work on the same, the gain arising on sale of the land will be taxable in the year of original agreement entered with the developer as the subsequent agreement will be treated only as a supplement agreement and cannot change the date of sale.

2.2 12-TIOL-279 Assessment Smt Prameela Krishna

3.1 DEL ITAT 17, ITA The land which was sold as per an agreement entered before the AY under consideration at a pre determined rate and the revenue had accepted the arrangement under the income tax proceedings in the case of buyer and seller, it cannot take a contrary view that the land was wrongly not included in the wealth tax of the seller and the agreement was a self serving agreement to save tax on wealth and wrongly valued at a rate other than the agreed rate though it was a contractual price and the 'A' was under an obligation to transfer the same at such price.

3.2 12-TIOL-280 Busi.Inc Nachiketa Real Estates (P) Ltd

4.1 MUM ITAT 244A, ITA Interest on interest is payable by the Revenue on the refund of interest due to the 'A', which remained unpaid following the CIT(A) order.

4.2 12-TIOL-282 Interest M/s The Development Bank Of Singapore Ltd

5.1 DEL ITAT 72 , ITA Income from the sale of shares is taxable as STCG when the transactions are delivery based and 'A' has not claimed the available STT credit.

5.2 12-TIOL-288 Sp. Provision Shri Ved Kapoor

6.1 DEL HC 47, ITA As per S 49 of the Companies Act, all investments of the company are to be held in the name of the company itself. In case it is held in the name of the nominees, the company is under obligation to file a declaration in the prescribed form in view of S 187C of the Companies Act. The violation of these provision and penalty thereof is one aspect. But, the effect of the said violation has to be examined and considered by the Income-Tax Authorities. It has to be also examined and considered by Revenue Authorities whether violation of the said provisions would prevent and bar the respondent 'A' from claiming that it was wholly owned subsidiary and the recorded shareholders were mere nominees and that accordingly it was eligible for exemption u/s 47 of Income tax Act

6.2 22 TM 12 Exemption Sunaero Limited

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