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Treating an exp. as capital when earlier it was held as revenue on similar facts would be sheer 'cha

IT: Assessing Officer having allowed expenses as revenue expenses, on basis of same details to take view that expenses were capital in nature, would clearly amount to a change of opinion

Sec. 10(23C) recognition not to be denied to a society pursuing other objects along with education

IT: Where assessee, a society, was running a degree college and it made an application for approval under section 10(23C)(vi) said application could not be rejected merely on ground that it was not filed by educational institution itself

No concealment penalty despite wrong claim if no inaccurate particulars reported by assessee

IT : Where assessee wrongly claimed depreciation on e-commerce site but there was no furnishing of inaccurate particulars, penalty for concealment was not leviable

Application could be filed to modify terms of stay if circumstances lead to stay undergone changes

IT: Application for vacating or modifying terms of stay can be filed where circumstances under which stay had been granted had undergone some material changes or where condition was imposed without appraisal of all facts of case

Sub-broker aiding creation of artificial scrip volume and price manipulation violates FUTP Regulatio

SEBI: A sub-broker abetting in creating artificial volume of scrip of company and manipulating price of scrip is guilty of violating FUTP Regulations and Brokers Regulations

CBDT's directives on TDS mismatch: unmatched TDS challans in form 26AS to be verified and corrected

IT : Action on Unmatched Challans Reflected in Form 26AS- Direction of The Hon'ble Delhi HC in The Case 'Court On Its Own Motion vs. UOI & ORS in WP(C) 2659/2012 & WP(C) 5443/2012 [2013] 31 TAXMANN.COM 31 (DELHI)

Supply for goods as per specification using material supplied by customer isn't a work contract sec.

IT : Where tenderer supplied sachets to assessee-milk producer society as per its specifications by securing material from external source, it could not be held as works contract

Benefit of ST Rule 6(3) is available on non-receipt of consideration in kind

ST/ECJ: In case of barter contract, if consideration in kind is not fully received, assessee may seek benefit of rule 6(3) of Service Tax Rules, 1994

Intention behind acquiring shares would decide ultimate treatment of loss therefrom - Capital or Bus

IT : Whether shares sold on which loss was suffered by assessee was stock in trade giving rise to business loss or capital asset giving rise to capital loss would depend upon intention with which shares were acquired by assessee

Claiming losses from residual sources as business loss won’t authorise to AO to initiate re-assessme

IT : Assessee having disclosed fact of cancellation of its banking licence in its return, Assessing Officer on basis of this fact could not reopen assessment to assess loss incurred by assessee under head 'Income from other sources instead of business loss

Interest on I-T refund isn't an operational profit for a co-operative bank, not eligible for sec. 80

IT: An assessee-banking society is not eligible for deduction under section 80P(2)(a)(i) on interest on income-tax refund

Declaration under sec. 73 can't be rejected without calling upon assessee to reverse pro-rata credit

ST: As per section 73 of Finance Act, 2010, on receipt of declaration making pro rata reversal of credit relating to exempted goods, Commissioner may verify correctness of amount paid and call upon assessee to pay differential amount, if any; but, he cannot reject declaration without granting a hearing to assessee

Jurisdiction of the High Court is determined by situs of AO at time of filing appeal

IT: Jurisdiction of High Court is determined by situs of Assessing Officer at time of filing appeal

Taxes to be withheld even if consideration for use of know-how is paid to NR through issue of shares

IT/ILT: Where non-resident-company provided technology/know-how in form of capital contribution, tax was required to be deducted at source on issue of shares

Cairn India Drops Along With Crude Oil Price

31-Aug-2013

Cairn India lost 1.82% to Rs 319 at 13:07 IST on BSE as US crude oil futures fell for a second straight day after UK lawmakers rejected a motion for military action against Syria, easing concern that unrest will disrupt Middle East oil supplies.



Meanwhile, the S&P BSE Sensex was up 43.62 points or 0.24% at 18,444.66.



On BSE, 1.13 lakh shares were traded in the counter as against average daily volume of 1.67 lakh shares in the past one quarter.



The stock hit a high of Rs 325.95 and a low of Rs 317.55 so far during the day. The stock had hit a 52-week low of Rs 267.90 on 28 March 2013. The stock had hit a 52-week high of Rs 365.90 on 17 September 2012.



The stock had outperformed the market over the past one month till 29 August 2013, surging 9.1% compared with the Sensex's 6.08% fall. The scrip had also outperformed the market in past one quarter, jumping 12.79% as against Sensex's 8.67% fall.



The large-cap company has equity capital of Rs 1910.46 crore. Face value per share is Rs 10.



US crude oil futures for October 2013 delivery were down $1.28 a barrel at $107.52 a barrel in the electronic trading today, 30 August 2013. The contract had fallen $1.30 a barrel or 1.18% to settle at $108.80 a barrel on the New York Mercantile Exchange on Thursday, 29 August 2013. Lower crude oil prices will result in lower realizations from crude sales for oil exploration firms like Cairn India.



The House of Commons rejected a proposal put forward by UK Prime Minister David Cameron seeking a military response to what he says is evidence of the use of chemical weapons by Syria.



Meanwhile, the global oil market is adequately supplied and doesn't require the release of emergency stockpiles, according to the International Energy Agency (IEA).



Cairn India's consolidated net profit fell 18.3% to Rs 3127.23 crore on 8.5% decline in net sales to Rs 4062.93 crore in Q1 June 2013 over Q1 June 2012.



Cairn India is primarily engaged in the business of oil and gas exploration, production and transportation. The company sells its oil to major refineries in India and its gas to both public sector units and private buyers.

Source:- business-standard.com

Bangalore Among Top Service Tax Laggards

Bangalore, with over one lakh registrants yet to file service tax returns under the one-time Voluntary Compliance Encouragement Scheme 2013, ranks among cities with highest defaulters.



Many may miss out on the benefits of the scheme due to lingering doubts, said Vanaja N. Sarna, Chief Commissioner of Central Excise and Service Tax, Bangalore Central Excise Zone, here on Friday.



Countrywide, only seven lakh of the 17 lakh registrants have filed service tax returns so far since the scheme became effective on May 10, leaving a chunky 10 lakh defaulters.

One-time opportunity



Urging participants to make use of the one-time opportunity, Ms. Sarna said the scheme was meant to improve service tax compliance and assessee base and would also spare declarants from penalty and interest under Service Tax laws.



She was speaking at an interactive session on the VCES organised by the Confederation of Indian Industry.

97 applications received



Suresh Kumar, Additional Commissioner of Central Excise and Service Tax, said in Bangalore alone, 97 applications were received up to August 29 with a declaration of Rs. 53 crore.



Under the scheme announced in the Budget, those who have not filed their returns should voluntarily declare their liabilities for five years from October 2007; they should pay at least 50 per cent of the due amount by December 31 this year and the rest by June 30, 2014.

‘Bold step’



Abhishek Goenka, Convener of CII-Karnataka’s Economic Affairs and Taxation Panel, and also Partner, BMR Advisors, called the VCES a bold step.



The CII’s exercise was to spread awareness about it, he said.

Source:- thehindu.com

[Indian Custom Non-Tariff Notification] : Amendment Notification No. 36/2001-Customs (N.T.), dated the 3rd August, 2001

Importers Stop Fresh Cement Import Orders From Pakistan

30-Aug-2013

Cement imports from Pakistan through Attari-Wagah route has almost come to a halt with record rise in US dollar against rupee, eliminating the viability for its import, traders said here.



"There are no fresh orders taking place for import of cement from Pakistan because of weakening of rupee against the US dollar," Amritsar-based leading cement importer M P Singh Chattha told PTI on Friday.



Importers pointed out that there was now no viability of importing cement from the neighbouring country as weakening of rupee had completely brought the pricing of Pakistan's cement on par with that of Indian one.



"Now, price of Indian cement is on par with as Pakistan's cement price because of rise in US dollar against rupee. After import, cement from Pakistan now costs at wholesale price of Rs 250 per bag, while Indian one is available at Rs 242 per bag," he said. "If an importer does not get a profit of Rs 2-4 per bag, then why he will import," he questioned.



Import of cement from Pakistan got a boost in the past as it was cheaper by Rs 20-25 per bag as compared to Indian cement. Moreover, the quality of cement from Pakistan is better than that of Indian cement, importers said.



A large number of traders are engaged into the import of cement which mainly comes from Islamabad and it is consumed in Punjab, Haryana, Himachal Pradesh and some other parts of the country. Financial transactions between traders of Pakistan and India at Attari-Wagah route is carried out in dollar terms.



Indian rupee touched a record low of 68.85 against the dollar earlier this week. Currently, against 40-50 trucks, now 10-15 trucks carrying cement are coming from Pakistan. "Whatever cement is coming now is the result of previous orders," said another import Rajdeep Uppal.



Meanwhile, importers further said that rates of dry fruits and dry dates coming from Pakistan would go up by 20 per cent. "Prices of dry fruits and dry dates have gone up by 20 per cent due to weakeing of rupee," said a dry fruit importer Anil Mehra. It is estimated that more than 15 lakh bags of dry fruits, including almond, fig, raisins, are imported annually from Pakistan.



Importers said that there was drastic fall of import of dry fruits and dry dates as traders are worried over uncertainty prevailing in rate of rupee against dollar.

Source:- economictimes.indiatimes.com

Ban High-Grade Iron-Ore Exports: Standing Committee

Exports of high-grade, if not all, iron ore should be slashed —preferably banned altogether—in order to preserve the “scarcely available national asset” and boost the domestic steel industry, the standing committee on coal and steel said in a policy review.



The committee, in its review of iron ore export policy tabled in Parliament on Thursday, urged the government to take immediate measures to ban the export of high grade iron ore (with more than 64% iron content) and “if possible ... total banning of export of iron ore.”



The committee headed by Kalyan Banerjee, a Lok Sabha member from the Trinamool Congress, virtually questions the rationale for exports, quoting the Planning Commission as saying “large scale exports of iron ore have raised serious concerns about future availability”.



The report comes just when finance minister P. Chidambaram is trying hard to curtail a current account deficit of $87.8 billion by boosting mineral exports among other measures. Speaking in Parliament, Chidambaram expressed unease about the fact that vast resources of iron ore are lying unexploited due to a ban imposed by the Supreme Court at a time when the country desperately needed forex.



The apex court has imposed a blanket ban on iron ore mining in Goa and a partial ban in Karnataka. It has left the decision on one iron ore mine in Orissa on the Union government.



The report also recommended that all upcoming steel plants and expansion of existing steel plants should be based on technologies that can use low grade iron ore (fines). It expressed dismay that out of the Rs 200 crore allocated by the 12th Plan, nothing was spent on promoting technologies that convert fines into pellets with high iron content.



Indian steel plants need high-grade ore because the capacity to process low-quality ore is still in a nascent stage.

Incidentally, the basic argument of the commerce and mines ministries to reduce export duty on iron ore is that “not all types of iron ore are suitable for processing in India”. The steel ministry has opposed this proposal.



Rather than taking the easier route of exports, the committee asked the ministry of steel to take immediate steps to create pelletization facilities so that lower quality ore can be fully used by domestic steel plants.



Noting that the iron ore requirement in 2016-17 is likely to be 206 million tonnes— 1.5 times the present consumption—it asked the steel ministry to draft a new steel policy and an action plan for exploring untapped potential sources of iron ore.

Source:- livemint.com

To Beat Rupee Heat, Indian Steel Makers Might Export More

To tackle the impact of the depreciating rupee on their margins, top domestic primary steel producers plan to focus on increasing exports and lowering the inventory build-up period of coking coal.



Coking coal is one of the major raw materials used by the domestic steel industry and contributes significantly towards the cost of production of the alloy. To meet its demand for coking coal, the domestic steel industry relies entirely on imports. With the rupee having depreciated about 25 per cent since the beginning of the year, hitting an intra-day record low of 68.75 against the dollar on Wednesday, the import bill for coking coal is expected to surge, raising the expenses of steel companies.



“We plan to lower our coking coal inventory duration to 30 days from 40-45 days,” a Rashtriya Ispat Nigam Ltd (RINL) official told Business Standard. “We will defer our coal purchases.”



RINL relies entirely on imported coking coal to meet demand. Most of the coal demand of JSW Steel and Essar Steel India is met through imports. While Steel Authority of India also imports the commodity, three-four per cent of its demand is met through captive sources.



About half the coking coal requirement of Tata Steel is met through captive mines. Jindal Steel and Power relies on imported coal, but as it also uses electric arc furnaces to manufacture steel, its requirement includes thermal coal, which is domestically available.



As a depreciating rupee benefits exporters, steel companies are planning to avail of the situation by tapping the foreign market, where demand is rising. Steel exports from India, on a rise since the last two-three months, are expected to increase further. “Our strategy to tackle the (falling rupee) situation is to increase our exports,” said Jayant Acharya, director (commercial and marketing), JSW Steel. “We will increase exports from the current 20 per cent (of the total) to tap the opportunity abroad,” he said. Currently, Mumbai-based JSW Steel sells 80 per cent of its steel produced in the domestic market.



“At present, our exports are negligible, but we plan to double it in the coming months to take advantage of the weakening rupee,” said the RINL official. RINL exports only 0.5-one per cent of its total steel production.



Companies such as Essar Steel have remained completely insulated from the rupee’s heat, purely because of their business model. “We are one of the largest exporters of flat products and so, our dollar inflows are more,” said Ashutosh Agarwala, director (finance) and chief financial officer, Essar Steel India. “We are naturally hedged. In fact, we are benefiting from the devaluation of the rupee,” he added.



West Asia, Southeast Asia and Africa were some of the regions that might account for Indian steel exports in the coming months, said analysts.



Meanwhile, Tata Steel and Steel Authority of India are banking on their assured clientele in the domestic market to drive business.



To bring home dollars and lower debt burden, if any, selling foreign assets could be another option steel companies could consider to protect their margins. Tata Steel operates Europe’s second-largest steel company, which it acquired in 2007, while JSW Steel owns a plates and pipes unit in the US, also acquired in 2007. “There are no plans to sell the US plant,” said Acharya of JSW Steel. “The US plant remains very much with us.”



“Even if a company is ready to sell, it is difficult to find a buyer in a dull market like this,” said Giriraj Daga, senior analyst with Nirmal Bang Institutional Equities. “Also, to get the right price for the unit to be sold is difficult,” he added.



On the domestic front, however, demand for steel remains subdued because of the poor investment climate. Here, steel producers plan to increase prices, anticipating demand would rise from October, ahead of the festive season. “JSW Steel is planning to raise prices of steel products for September, but we are yet to decide the quantum,” said Acharya.



“There could be a price rise of Rs 1,000-1,500 a tonne for September, as the input cost has gone up because of the rupee,” said an RINL source. “Though demand is not very strong in the domestic market, stockists are taking a risk in anticipation that demand may pick up in coming months,” said the source.



All things considered, domestic steel producers seem to be keeping no stone unturned to save themselves from the weakening rupee.

Source:- business-standard.com

Government Raises Import Tariff Value Of Gold To $461 Per 10 Grams

30-Aug-2013

The government on Friday raised the import tariff value of gold to $461 per ten grams and of silver to $803 per kg as prices of the precious metals touched all-time high this week.



Tariff value -- the base price on which the customs duty is determined to prevent under-invoicing -- of gold and silver stood at $432 per 10 gram and $697 per kg, respectively earlier.



The notification, issued by the Central Board of Excise and Customs, has come two days after when gold prices has touched the new peak of Rs 34,500 per 10 grams in the national capital. The prices of yellow metal has increased by 9 per cent so far in the month of August.



Prices of Gold today fell and closed at Rs 31,700 per ten grams and Silver at Rs 54,000 per kg in the national capital today.



However, gold in Singapore, which normally sets the price trend on the domestic front, fell by almost one per cent to $1,393.10 an ounce and silver by 1.34 per cent to $23.55 an ounce.



India, the largest gold consumer in the world, imported 860 tonnes of gold in 2012. In the first four months of the current fiscal, the import rose 87 per cent to 383 tonnes.

Source:- economictimes.indiatimes.com

HC admitted winding up petition as Co. failed to honour Rs. 1 lakh debt despite legal notices

CL: Where there was no bona fide dispute that debt due and payable by company was more than statutory amount of Rs. 1 lakh and in spite of statutory notice, company failed or neglected to pay same, winding up petition filed by creditor was deserved to be admitted

Due date for filing of ST-3 return further extended to September 10, 2013

ST : Section 70 of The Finance Act, 1994, Read with Rule 7 of The Service Tax Rules, 1994 - Furnishing of Returns - Due Date for Filing of ST-3 Return for The Period 1-10-2012 to 31-3-2013 Further Extended to September 10, 2013

TP adjustment for controlling premium upheld; transfer of shares as per SEBI Regulation can’t be dee

IT/ILT : TP adjustment for control premium upheld as it is only the seller who can demand control premium in case he is selling the controlling stake. Even if price charged for transfer of shares is as per SEBI Regulations, it can't be deemed to be at ALP as such regulations does not in any way state that price negotiated by the assessee with the buyer is at arm's length price

ORDER NO 04/2013-Service Tax dated 30-08-2013

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise & Customs

Order No: 4/2013-Service Tax

New Delhi, dated the 30^th August, 2013

In exercise of the powers conferred by sub-rule(4) of rule 7 of the Service Tax Rules, 1994, the Central Board of Excise & Customs hereby extends the date of submission of the Form ST-3 for the period from 1^st October 2012 to 31^st March 2013, from 31^st August, 2013 to 10^th September, 2013.

The circumstances of a special nature, which have given rise to this extension of time, are as follows:

“ Difficulties have been faced by assessees in uploading the offline utilities”.

Himani Bhayana

Under Secretary (Service Tax)

Central Board of Excise and Customs

F.No.137/99/2011-Service Tax

To

All Chief Commissioners of Central Excise / Customs and Central Excise

Directors General of Service Tax /Central Excise Intelligence /Audit/Systems All Commissioners of Central Excise/ Customs and Central Excise

All Commissioners of Service Tax

All Commissioners LTU

All Additional Directors General Systems

TP adjustment for controlling premium upheld; transfer of shares as per SEBI Regulation can’t be dee

IT/ILT : TP adjustment for control premium upheld as it is only the seller who can demand control premium in case he is selling the controlling stake. Even if price charged for transfer of shares is as per SEBI Regulations, it can't be deemed to be at ALP as such regulations does not in any way state that price negotiated by the assessee with the buyer is at arm's length price

Membership fee paid to a foreign NPO for professional updates doesn't have constituents of 'Income';

IT/ILT: Where subscription/membership fee paid by Indian CA firm to UK non-profit organisation did not result in income in its hands, amount was not taxable

No sec. 14A disallowance if shares are held as stock-in-trade; related admin exp. are still disallow

IT: Disallowance of interest under section 14A in relation to dividend received from trading of shares cannot be made

Credit can't be denied to input service distributor even if its invoices bear name of head office

ST : Where receipt of input service and use thereof along with identity of service provider and service recipient are established, credit cannot be denied merely because invoice thereof bears address of Head Office, which is not registered as ISD.

CLB's decision does not have fatal flaw even it formal procedure relating to amendment of pleadings

CL: Decision of CLB or Court would not suffer from a fatal flaw just because formal procedure pertaining to amendment of pleadings is not adhered to in that case

Manufacturing of different Masala Powders eligible for section 80-IB deduction

IT: Manufacturing different masala powders amounts to manufacturing activity eligible for deduction under section 80-IB

Order by ITAT couldn't be recalled if neither any mistake nor any reasonable cause for non-appearanc

IT: Where Tribunal passed an ex parte order deciding issues on merits and assessee had not been able to show any mistake in that order nor any reasonable cause for its non-appearance, order passed by Tribunal could not be recalled

Refund application signed by agent would be a sufficient compliance by principal

ST/ECJ: In case of an application for refund, it need not necessarily be signed by assessee in person and signature of an agent may be sufficient for that purpose

Customs Notification No 91/2013 (NT) dated 29-08-2013

Government of India

Ministry of Finance

(Department of Revenue)

(Central Board of Excise and Customs)

Notification No. 91/2013 – Customs (N. T.)

New Delhi, 29^th August, 2013

7 Bhadrapada, 1935 (SAKA)

S.O. … (E).– In exercise of the powers conferred by sub-section (2) of section 14 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise & Customs, being satisfied that it is necessary and expedient so to do, hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 36/2001-Customs (N.T.), dated the 3^rd August, 2001 , published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii), vide number S. O. 748 (E), dated the 3^rd August, 2001, namely:-

In the said notification, for TABLE-1, TABLE-2, and TABLE-3 the following Tables shall be substituted namely:-

“TABLE-1

Sl. No.	Chapter/ heading/ sub-heading/tariff item	Description of goods	Tariff value US $ (Per Metric Tonne)
(1)	(2)	(3)	(4)
1	1511 10 00	Crude Palm Oil	808 (i.e. no change)
2	1511 90 10	RBD Palm Oil	851(i.e. no change)
3	1511 90 90	Others – Palm Oil	830(i.e. no change)
4	1511 10 00	Crude Palmolein	854(i.e. no change)
5	1511 90 20	RBD Palmolein	857(i.e. no change)
6	1511 90 90	Others – Palmolein	856(i.e. no change)
7	1507 10 00	Crude Soyabean Oil	928(i.e. no change)
8	7404 00 22	Brass Scrap (all grades)	3743(i.e. no change)
9	1207 91 00	Poppy seeds	2648(i.e. no change)

TABLE-2

TABLE-3

Sl. No.	Chapter/ heading/ sub-heading/tariff item	Description of goods	Tariff value (US $ Per Metric Tons )
(1)	(2)	(3)	(4)
1	080280	Areca nuts	1870 (i.e. no change) ”

[F. No. 467/01/2013-Cus.V Pt-I]

(M. Satish Kumar Reddy)

Director (ICD)

Note: - The principal notification was published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii), vide Notification No. 36/2001–Customs (N.T.), dated the 3^rd August, 2001 , vide number S. O. 748 (E), dated the 3^rd August, 2001 and was last amended vide Notification No. 85/2013-Customs (N.T.), dated the 21^st August, 2013 , published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii), vide number S. O …….. (E) Dated, the 21^st August, 2013.

NO disallowance for cash payment at a petrol pump located in a remote area not privileged with banki

IT: Where assessee made cash payment for purchase of petrol in excess of Rs. 20,000 at a petrol pump which was far away from main town, Tribunal rightly concluded that it was not feasible to make payment by way of cheque or demand draft and, therefore, impugned disallowance made under section 40A(3) was not sustainable

Incapacity of donor to donate is a valid ground to initiate re-assessment if it wasn’t analysed earl

IT: where assessment was completed without expressing any opinion regarding donation disclosed by assessee-trust, subsequent reopening on ground of donor's incapacity to pay, would be valid

Assessee can't ask to reopen or reargue whole matter in garb of rectification application

IT: In garb of an application for rectification under section 254(2), assessee cannot be permitted to reopen and reargue whole matter as same is beyond scope of section 254(2)

No sec. 10(23C) relief if assessee hadn’t applied its income for charitable purposes

IT: Merely because there is an exemption order under section 10(23C), assessee is not entitled to exemption unless he satisfies conditions subject to which said exemption is granted

Receipts of Thai company from rendition of support services to Indian consultancy co. is not FTS

IT/ILT: Where assessee-company, a resident of Thailand, provided data, information and other support services to its Indian counterpart so as to enable it to render strategic consultancy services, amount received by assessee for providing said services was to be regarded as "business profits" within meaning of article 7 of India-Thailand DTAA and in absence of assessee's PE in India, said amount could not be brought to tax in India

Court can't interfere with a decision of one of the parties to contract with Govt. of India on basis

CL : In case of Production Sharing Contract (PSC) entered into between Government of India, ONGC (a Government undertaking) and private parties in respect of exploration and exploitation of crude oil and natural gas, if there is transfer of interest between parties in normal course of their business, Court can not interfere in said decision by merely placing reliance on CAG's report

Rupee Down 75 Paise Against Dollar In Early Trade

The rupee on Friday fell by 75 paise to 67.30 against the dollar in early trade, after Thursday’s strong recovery, at the Interbank Foreign Exchange market on month-end dollar demand from importers amid strengthening of the U.S. currency overseas.



Forex dealers said besides dollar gaining against other currencies in the global markets on upbeat U.S. economic growth data, a lower opening in the domestic equity market also put pressure on the rupee.



The rupee had gained 225 paise to 66.55 against the dollar, the most in at least 15 years in Thursday’s trade, after the Reserve Bank of India eased pressure in the currency market by starting a facility for state-run oil refiners to buy foreign exchange.



Meanwhile, the BSE benchmark Sensex fell by 71.68 points, or 0.39 per cent, to 18,329.46 in early trade on Friday.

Source:-www.thehindu.com

Wheat Exports From India Seen Climbing On Record Plunge In Rupee

29-Aug-2013

India, the world’s second largest wheat producer, may resume exports after a gap of three months as a slump in the nation’s currency to a record lowers costs for importers from South Asia to the Middle East.



“Private traders may ship about 1 million metric tonnes by March,” said Tejinder Narang, an adviser with Emmsons International Ltd., a New Delhi-based exporter. “Sales may increase further if the government cuts the export price of grains from its stockpiles,” he said.



Resumption of Indian exports may add to global supplies and pressure prices in Chicago that have fallen 27% in the past year on prospects for the biggest crop ever. The rupee tumbled 19% this year, boosting export potential of everything from rice to wheat to sugar and cotton, while increasing costs for imports of gold and crude oil. “Indian wheat will compete with grain from the Black Sea region,” said Vijay Iyengar, managing director of Agrocorp International Pte.



“The weak currency will make Indian wheat more competitive in the world market,” Abdolreza Abbassian, an economist at the United Nations’ Food & Agriculture Organization, said in a phone interview on Wednesday. “There is potential to increase exports. To export more, or to be more competitive, Indian price has to be closer to the world market.”



“Indian supplies at about $260 a tonne free-on-board basis could compete with those from Russia and Ukraine,” Emmsons’ Narang said. “Egypt, the world’s biggest importer, bought 295,000 tonnes of wheat on Wednesday at prices from $250.44 a tonne and $254 a tonne,” said Mamdouh Abdel Fattah, vice chairman of the state-run General Authority for Supply Commodities.

Source:- livemint.com

Reduce Unnecessary Imports

The government can no longer go ahead thinking this is business as usual. The current strategy is ad hoc and needs a change. The crisis measures have to be a part of a medium-term strategy. The current crisis must be seen as an opportunity to revive domestic production.



The current account deficit has ballooned partly because court orders have closed Indian mines for iron ore and coal, reducing exports and necessitating imports of those products. Non-essential imports, particularly those imports that have affected employment and livelihood, and gold imports have to be reduced. This is why the food security bill is good as it releases people with incomes for other spending.



If the private sector is not willing to invest, we need to get on with it.



We need an alternative source of demand that creates necessary infrastructure.

Source:-www.thehindu.com

Onion Prices Stay High As Imports Likely To Take More Time

29-Aug-2013

Even as persistently high onion prices prompted the Central government to import it from other nations, there is no immediate relief for the consumer.



Onion prices continued to stay higher even after a fortnight of the announcement of imports of onion from Pakistan, Iran and China.



At Lasalgaon market, onion prices hovered around Rs 3,400 a quintal, which is higher by around Rs 200 a quintal on August 20.



Central government decided on August 14 to import onions, which hovered around Rs 4,700 a quintal. But there was not much relief as prices continue to remain high at other wholesale markets.



“The government has announced import of onions. But it will take at least a week more to reflect its impact on the market. Prices still continue to stay high at major onion markets,” said a trader from Nashik.



In other markets, including Ahmedabad, Mumbai and Delhi, prices hovered between Rs 3800 Rs 4300 a quintal. Arrivals remained thin between 700 quintal and 5,000 quintal at these markets.



The state agency, National Agricultural Cooperative Marketing Federation of India (Nafed) has issued tenders asking interested onion traders to submit their proposals by August 27. The imports will start only a week after the finalization of the parties. Hence, traders see no likelihood of prices to cool off before September 10.



“In retail prices will continue to remain high till the first week of September. We reflect prices at Lasalgaon market. But there are no indications of a fall in prices there. So at other markets also prices will remain high,” an onion wholesaler at Ahmedabad’s Chimanbhai Patel APMC informed.



In retail, prices are once again quoting around Rs 60-70 per kg in Ahmedabad market, while in Delhi, the prices have touched Rs 80 a kg once again.



As per the NHRDF sources, domestic arrivals have not yet started in full swing. It will start after September 15. Till then the government has decided to source more than 3,00,000 tonnes of onions from countries like Pakistan, China, Iran and Egypt.

Source:- business-standard.com

Ghg Impacts In China Now Considered In Pnw Coal Export Review

29-Aug-2013

The coal industry’s plan to move millions of tons of coal through Pacific Northwest (PNW) terminals to China and other Asian markets received a body blow when Washington regulators said environmental impact reviews must consider the worldwide impact of burning the export coal in China.



One of the major battles surrounding the various proposals has centered on the “scope” of the environmental review process.



That question was answered on July 31 when the U.S. Army Corps of Engineers, the Washington State Department of Ecology, and Whatcom County jointly announced the scope of their joint Environmental Impact Statement (EIS) for a proposed coal export terminal at Cherry Point, in northwest Washington State. If built, it would be the largest coal export terminal in North America, exporting up to 48 million metric tons of coal per year to Asia. The proponents of the terminal include Peabody Energy, SSA Marine, and Goldman Sachs.



In a major victory for opponents of the export proposals, the scope of the environmental review will be broad, and not limited to the PNW region as pushed by coal industry proponents.



The state’s environmental review will include: human health impacts from coal dust around the Cherry Point terminal and in communities along the entire rail line, marine traffic impacts, rail traffic impacts, greenhouse gas emissions from burning the exported coal in Asia, and cumulative impacts from the second proposed terminal in the state, the Millennium Bulk Terminal in Longview, WA.



This is precedent-setting stuff—especially the part about impacts of GHG emissions from burning the exported coal in Asia. It raises the bar on passing environmental muster to a new, much more difficult, and perhaps impossible, level for export terminal supporters.



“Washington state has set a new precedent that could potentially interfere with international commerce laws protecting rail and trade and discourage new business investment in the state,” was the response in a statement issued by the Alliance for Northwest Jobs & Exports, a business group.



“This scope is a reflection of Northwest values – the depth and breadth of the scope is absolutely on target and appropriate given the impacts this project would have on our way of life,” said Cesia Kearns, campaign director for the Power Past Coal campaign, a coalition of hundreds of businesses, health experts, community organizations and environmental and faith groups.



Cherry Point is one of three remaining coal export proposals in Washington and Oregon; three other proposals were scrapped over the past year. If all three terminals are built, it would mean up to 100 million metric tons of coal exported every year, and up to 40 trains per day traveling through many rail-line communities such as Missoula, Montana and Spokane, Washington.



Is the PNW coal export plan falling apart? The EIS scoping decision could be a deadly nail in its coffin, but there is still a long way to go, three remaining terminal proposals, a desperate and well-heeled coal industry, and a lengthy review process ahead.



But here’s an interesting tidbit about the Cherry Point proposal: last month Goldman Sachs, a Cherry Point proponent, said coal export terminals are a bad investment. Oops!

Source:- triplepundit.com

The Rising Challenge Of Food Security – Analysis

Demand for food is expected to increase, outpacing supply. As this situation worsens in the years ahead, the world will be burdened by the growing problem of food security. Expect more debate on this front in the years to come.

THE WORLD is being haunted again by the spectre of a global food shortage. Demand for food over the next decade is expected to increase by one per cent annually but global food productivity gains have declined from two per cent between 1970 and 2000 to one percent today and continuing to decline.

A 2011 study reported that the world had consumed more than it had produced for seven out of the past eight years. These concerns will lead to growing attention to the nexus between food, water and energy resources, especially as climate change is expected to have an increasing impact globally.

Need for integrated approach to food security policy

Nineteenth century economists struggled with the Malthusian dilemma: as populations rose, it was assumed that a forced return to subsistence agriculture would act as a check on population growth. The reality was that the opening of new agricultural land, technological innovation and higher yielding crops resulted in a capacity to feed an ever growing population.

However, as once autarkic economies such as China and India have opened to global trade and more wealthy societies are eating more protein, consuming more calories and enjoying more varied diets in recent years, there is growing concern with the fragility of the global food system. These concerns were highlighted by the spike in food prices and disruptions in food supply during the 2007-2008 global food crisis.

My colleagues at the RSIS Centre for Non-Traditional Security Studies have emphasised that robustness in food security systems is critical and that governments need to work with the private sector and other key stakeholders. Instead of piecemeal strategies, an integrated and holistic approach to policy formulation and implementation is critical to deal with the four dimensions in food security: availability, physical access, economic access and utilisation.

Although agricultural issues appear distant from an urbanised Singapore, food security is politically sensitive precisely because we are dependent on international markets for our food supply. Sharp increases in the price of key food imports, export bans by major food suppliers and difficulties in obtaining adequate supplies could have significant domestic ramifications.

Source:- eurasiareview.com

Costlier Imported Scrap Pushes Domestic Sponge Iron Prices

29-Aug-2013

The prices of sponge iron, is used as an input for steel making along with metal scrap, have moved up, riding on the rising cost of imported scrap due to depreciation of the rupee against dollar.



Over the past two weeks, sponge iron prices have risen by three per cent to trade at Rs 17,500 a tonne at trading hub Rourkela.



According to industry insiders, the rates are likely to go up by another Rs 500 a tonne, as more buyers are expected to switch from imported scrap to sponge iron. Sponge iron or directly reduced iron (DRI) is used as a raw material in electric arc furnaces and induction furnaces to produce hot steel with some amount of steel scrap.



The arc furnaces usually require sponge iron and steel scrap in 60:40 ratio and change the amount of steel scrap in the mix, based on the prices.



"The buyers will prefer more sponge iron instead of steel scrap in the days to come. We hope the rates could touch Rs 18,000 per tonne at Rourkela in September and the demand will last till December," said an official of Tata Sponge Iron Ltd.



In international markets, steel scrap rates are hovering around $340 a tonne at European ports at present, up from $333 a tonne in July. Meanwhile, the rupee has declined against the dollar by more than five per cent in August alone.



More, the imposition of import duty on steel scrap at 2.5 per cent has made the rates costlier. The landed cost of steel scrap at Mumbai port is currently Rs 23,000 a tonne, up from Rs 21,000 a tonne a month ago. India imports around 7.5 million tonnes of metal scrap a year. With domestic scrap generation largely dominated by unorganised sector collectors, metal recyclers have to depend on imports.



"The rates (of sponge iron) have gone up because of regular post-monsoon demand and not on costlier scrap as the scrap imports have not fallen despite imposition of import duty. It is overall demand for all steel products that has seeped into sponge iron, too," said Deependra Kashiva, executive director of Sponge Iron Manufacturers' Association.



In India, the demand for all steel products rise in post-monsoon period coinciding with construction activities that speed up during the period. Demand for flat products also go up during this period in expectation of better automobile sales at Diwali and other festivals which come after the July-September monsoon season.

Source:- business-standard.com

Gold Price Tumbles Rs 1,575 From Record High On Fresh Selling

29-Aug-2013

Gold prices in India fell from their record high on Thursday, plunging Rs 1,575 to Rs 32,325 per 10 gram, on profit-selling by stockists amid a weakening global trend.



Besides the rupee recovering to 67.30, some retailers selling old scrap gold further influenced the trading sentiment.



Selling pressure emerged at existing higher levels as gold climbed to Rs 33,900 after it touched Rs 34,500 per 10 gram intra-day on Wednesday with its biggest ever gain of Rs 1,900 in the backdrop of the rupee hitting record low of 68.85 per dollar.



Traders said the market also received impact of weakening global trend on optimism the US economic data may reinforce the case for the Federal Reserve to slow stimulus.



Gold in Singapore, which normally set price trend on the domestic front, lost 0.9 per cent to $1,404.88 an ounce and silver by 2.8 per cent to $23.66 an ounce.



Silver followed suit and plunged by Rs 2,790 to Rs 55,710 per kg on poor offtake by industrial users and coin makers at higher levels.



On the domestic front, gold of 99.9 and 99.5 per cent purity tumbled by Rs 1575 each to Rs 32,325 and Rs 32,125 per ten grams respectively. Sovereign lost Rs 200 at Rs 25,300 per piece of eight gram.



Silver ready nosedived by Rs 2790 to Rs 55,710 per kg and weekly-based delivery by Rs 3700 to Rs 55,300 per kg. The white metal had surged Rs 3700 in the previous session.



Silver coins also plunged by Rs 3,000 to Rs 89,000 for buying and Rs 90,000 for selling of 100 pieces on poor demand at prevailing higher levels.

Source:- businesstoday.intoday.in

Rupee Trims Initial Gains Vs Dollar, Still Up By 120 Paise

29-Aug-2013

The rupee trimmed its initial gains against the US currency, but was still quoted higher by 120 paise to 67.60 per dollar in the late morning trade on selling of dollars by banks and exporters in view of steps taken by Reserve bank of India yesterday.



The battered rupee recovered after the Reserve Bank of India (RBI) yesterday said it has started a facility to meet the daily dollar requirement of the country's three state-run refiners.



The rupee resumed higher at 66.90 per dollar as against the previous closing level of 68.80 per dollar at the Interbank Foeign Exchange (Foerx) Market and firmed up further to a high of 66.85 per dollar.



However, it trimmed its initial gains and was quoted at 67.60 per dollar at 1040 hrs.



It moved in a range of 66.85 per dollar and 67.71 per dollar during the morning deals.



Banks and exporters preferred to reduce their dollar position in view of recovery in the equity market.



The benchmark Sensex rose by 201 points or 1.12 per cent to 18,197.33 at 1050 hrs.



However, in New York market, the dollar yesterday rose against major currencies, including the pound, as investors continued to worry about a possible military strike in Syria.

Source:- economictimes.indiatimes.com

Application filed with Commissioner of ST is as good as filed with Commissioner of Central Excise

ST : Where an application, required to be filed with Commissioner of Central Excise, had been filed with Commissioner of Service Tax within due date but was transferred to Commissioner of Central Excise after due date, such application could be regarded as filed with Commissioner of Central Excise within time

Mere disallowance of any exp. doesn't warrant mandatory imposition of concealment penalty

IT: Disallowance of repair expenses as revenue expenditure could not be basis to impose penalty under section 271(1)(c)

Payment for delay in completion of buy-back process under open offer to be deemed as cap gains and n

IT/ILT: Interest received by assessee for delay in completion of the process of buy-back of shares under open offer to be deemed as capital gain and not interest income

Amended Rules on Prevention of Money Laundering pertaining to search and seizure; scope extended to

MONEY LAUNDERING : Prevention of Money-Laundering (Forms, Search and Seizure or Freezing and The Manner of Forwarding The Reasons and Material to The Adjudicating Authority, Impounding and Custody of Records and The Period of Retention) (Amendment) Rules, 2013 - Amendment in Rules 1, Rule 2, 4, 8, 9, 10 and Substitution of Form-I

SEBI issues guidelines on ‘conflict of interest’ for market entities; asks them to ensure compliance

SEBI : General Guidelines for Dealing with Conflicts of Interest of Intermediaries, Recognised Stock Exchanges, Recognised Clearing Corporations, Depositories and Their Associated Persons in Securities Market

SEBI tightens share purchase disclosure norms for CRAs; seeks compliance by October 1, 2013

SEBI : Guidelines for Dealing with Conflict of Interest for Investment/Trading by CRAs, Access Persons and Other Employees

Audited books are sacrosanct if auditor doesn't comment adversely on their maintainability

IT : Where books of account of assessee were audited and auditor had not given any adverse comments in maintenance of books of account or stock register, it was apparent that assessee had maintained proper books of account and Assessing Officer was wrong in rejecting same

Sound recording on blank discs is a 'manufacture'; not liable to service tax

ST: Recording of audio cassettes on duplicating music system amounts to 'manufacture' and is, therefore, not liable to service tax by virtue of negative list

RBI’s helping hand to support Rupee; launches a window to sell dollars directly to Public Sector Oil

FEMA/ILT : RBI Introduces Forex Swap Window for Public Sector Oil Marketing Companies

Rules notified on mode of taking possession of attached or frozen properties relating to money laund

MONEY LAUNDERING : Prevention of Money-Laundering (Taking Possession of Attached or Frozen Properties Confirmed by The Adjudicating Authority) Rules, 2013 Issuance of Provisional Attachment Order) Rules, 2013

CG notifies rules dealing with order of provisional attachment of properties involved in money laund

MONEY LAUNDERING : Prevention of Money-Laundering (Issuance of Provisional Attachment Order) Rules, 2013

AO can't seal fate of stay application without giving opportunity of personal hearing to assessee

IT : While examining an application for stay of demand, Assessing Officer must pass a speaking order and extend opportunity of personal hearing, if sought by assessee

Provision for liquidated damages founded on reliable estimates is ascertained liability and allowabl

IT: When a company made reliable estimate of liquidated damages based on performance capacity and quality and materials relating to machinery, its claim for provision towards damages was fully allowable

A provider of exempt services is not an 'assessee'

ST/ECJ: A service provider (viz. lawyer) providing exempted services is not a person liable to pay service tax and is, therefore, not an assessee

Additions for items shown in audited accounts not sustainable if books of account weren't rejected

IT : Where books of account were not rejected, addition of amounts shown in audited account is not sustainable

Assessee hasn't been flouting stay order if hearing was adjourned due to an awaited order of SB on s

IT: Where hearing was adjourned to await order of Special Bench of ITAT on same issue, it could not be held that assessee had sought adjournment by pointing out such fact, and thus flouted stay order

Assessee could take shelter of beneficial order if SC passed divergent orders on same day and on sam

ST : In case of difference in interim orders of Supreme Court passed on same day on same issue of recovery of arrears of service tax dues in respect of renting of immovable property services provided upto 30-9-2011, assessee may claim benefit of beneficial order

SC: Tribunal to record its findings on impugned violation of provisions before deciding jurisdiction

SEBI: Tribunal to record its findings on impugned violation of provisions before deciding jurisdiction of SEBI

No sec. 41(1) additions for waiver of interest if ROI of year in which deduction was claimed was tre

IT: Where assessee's returns, claiming interest deduction, were treated as non est, waiver of such interest could not be subsequently taxed as remission of liability

India Plans Oil Import From Iran To Cut Import Bill, Cad

Aug 28, 2013

NEW DELHI: The oil ministry has worked out a plan to save $22 billion in the oil import bill from Iran thus helping reduce the current account deficit (CAD), petroleum minister M Veerappa Moily has said.



"Oil (imports) is one of the components responsible for CAD. The prime minister has told us to save $25 billion in the import bill. As of today, we have pieced together a plan to save $22 billion in import bill," Moily said.



He said the savings would be around one percent of the GDP.



Moily was talking to reporters Tuesday at an event to present a cheque for Rs.5 lakh to the widow of Arjuna awardee sportsman late Makhan Singh.



Senior oil ministry sources told IANS that the plan includes renewing imports from sanctions-hit Iran, which India pays in rupees thereby saving foreign exchange and reducing the CAD.



Officials calculate that importing, for instance, 10 million tonnes oil from Iran means saving $10 billion in foreign exchange outgo. During the last fiscal, India imported 13.1 million tonnes of oil from Iran, down from 18.11 million tonnes of 2011-12.



After not buying any oil from Iran in first four months of the current fiscal, imports were resumed this month with state-run Mangalore Refinery and Petrochemicals getting the first tanker-load.



In view of the current volatility of the rupee against the dollar, India is discussing with Iraq the possibility of trade in local currencies, which would help insulate India's oil imports from Iraq also.

Source:-timesofindia.indiatimes.com

Gold Imports In August Likely To Be 5 Tonne; May Resume From Tomorrow

28 Aug, 2013

MUMBAI: Jewellers are expecting customs authorities to release soon gold held up at warehouses due to confusion over RBI's recent notifications on import of the precious metal.



The central bank had come out with a circular on July 22 that said 20 per cent of an imported consignment should exclusively be made available for exports. As the Customs were unsure of how to implement RBI notification, they stopped all stocks from entering the country, jewellers claimed.



"We hope the Central Board of Excise and Customs will release the gold, which is deposited at the Customs bonded warehouses, in a day or two as we have discussed and clarified the confusion on the RBI notification earlier this week," Gems and Jewellery Export Promotion Council Vice Chairman Pankaj Parekh told PTI.



He added that with immediate release of gold from the warehouses, total import in August is likely to go up to 4-5 tonne. In September, Parekh said, the total gold imports is likely to be around 20-25 tonne giving respite to manufactures who were struggling with lack of enough stocks.



On August 26, GJEPC members met with CBEC to discuss the RBI circular, and it has been agreed that after taking one time certificate from the Customs Department, the traders do not need permission every time they take a delivery, Parekh said.



The second point they agreed upon is that instead of invert remittance, which takes more than 280 days, as a proof of export before the import of third lot, exporters can give customer invoices as evidence of their shipments, he added.



Gold prices zoomed to a record high of Rs 34,500 per 10 gram with a biggest-ever single day surge of Rs 2,500 in opening trade in bullion market today amid the rupee hitting historic low of 68.75 a dollar.



All India Gems and Jewellery Federation Chairman Haresh Soni too said there is likely to be at least some import in the last two days of this month. "At the moment the stocks lying at the Customs bonded warehouses will be released into the country. However, it's very difficult to quantify it," he pointed out.



He said in September the imports were expected to be normal.

Source:-economictimes.indiatimes.com

Import Duty On Metal Scrap Batters Recyclers In India

Aug 28, 2013

MUMBAI (Scrap Monster) : The re-instating of import levy on scrap metal imports to the country by the Indian government has created unrest among the metal recyclers in the country. The imposition of duty has left many of them on the verge of closure.



Recently, the Indian government had issued customs notification imposing an import levy of 2.5% on aluminium, ferrous and stainless steel scrap. In a separate notification, the government also had imposed 4% special additional duty of customs (SAD) on brass scrap imports.



India is the only country in the Southeast Asian region to have imposed import duty on scrap metals. According to the Metal Recycling Association of India, the move by the Indian government will only help to hinder the use of metal scrap by the country. Also, the domestic metal recyclers may find it extremely difficult to face the mounting competition from semi-finished producers in other ASEAN countries where raw material imports are duty-free.



In India, domestic scrap collection is still dominated by informal sector. According to statistics, the country imports nearly 7.5 million tonnes of scrap every year. The 4500 around metal recyclers, who depend on the imported raw material to produce castings, would be left with no option but to close down their business. Such an action by metal recyclers will in effect result in India losing its US$ 100 billion vehicle and vehicle components market to China and Thailand.



Meanwhile, the Metal Recycling Association of India (MRAI) has requested the government to take immediate action to abolish the import duty. The government is reported to be looking into the matter quite seriously.

Source:-www.metal.com

Iron Ore Exports Set To Restart In A Big Way

August 28, 2013

The rise in prices of iron ore in international markets and the depreciating rupee have prompted many exporters to begin shipments of iron ore fines and pellets. A bunch of exporters have booked five shipments of pellets for September delivery to buyers in China as the prices have moved up 10.5 per cent to $136 a tonne.



“Exporters were holding on to their stocks since a month in anticipation of a cut in export duty by the government. As prices have improved abroad, they have started booking export contracts to benefit from the rupee depreciation,” said Prakash Duvvuri, head of research, Ore Team, a mining and metal information website.



Nearly half a dozen exporters have booked consignments from Paradip and Vizag ports on the eastern coast for September delivery to Chinese buyers. According to reports, five ships with 50,000 tonnes of pellets each are being shipped.



As of the end of July and early August, exporters were holding on to their stocks in anticipation that the government will reduce duty on exports to 15-20 per cent from 30 per cent earlier.



Between April and July, the country had exported 3.92 million tonnes (mt) of ore (provisional figures) as against 13.4 mt in the corresponding period, a decline of 240 per cent, he said.



Duvvuri said the rupee depreciation might encourage more exporters to look for shipments abroad this year. An average of at least 1 mt of iron ore fines per month could be exported this year. Also, the rise in pellet prices has prompted Indian producers to look for their export this year. In recent days, prices of pellets have increased eight per cent from Rs 6,200 a tonne a month ago to Rs 6,700 a tonne currently, he said.



There is surplus production of pellets in the country. Of a total installed production capacity of 56 mt, Indian companies are producing 38 mt annually. Of this, about 25 mt are consumed in the domestic m arket, while the remaining 13 mt are available for exports, Duvvuri said.



In 2012-13, India’s iron ore exports declined 73 per cent to 18.66 mt, against 68 mt in the previous year. This was mainly due to ban in Goa, Karnataka and restrictions on mining in Odisha last year. Export duty of 30 per cent and differential freight policy adopted by the Indian Railways also contributed to decline in exports.



“If mining resumes in Goa by October this year, we could expect an additional 10 mt of iron ore exports during the current financial year. Else, the country will end up exporting about 12 mt, an all-time low compared to 18.66 mt last fiscal,” Duvvuri added.

Source:-www.business-standard.com

Economic Crisis May Prompt India To Restart Iran Oil Import

27th Aug 2013

New Delhi: Prime Minister Manmohan Singh has sought USD 25 billion cut in oil import bill to narrow current account deficit, Oil Minister M Veerappa Moily said on Tuesday.



India, which paid about USD 170 billion last fiscal for importing oil, is renewing imports of the fuel from Iran as unlike imports from other countries, it pays the Persian Gulf nation in rupees.



"Oil (imports) is one of the components responsible for CAD. Prime Minister has told us to save USD 25 billion in import bill. As of today, we have pieced together a plan to save USD 22 billion in import bill," Oil Minister M. Veerappa Moily told reporters here.



A large part of the plan includes restarting import of oil from Iran. As US and western sanctions blocked all payment routes, India pays Iran in rupees in a UCO Bank branch in Kolkata.



Officials said if India was to import 10 or 11 million tonnes oil from Iran this fiscal, it could save a minimum of USD 10 billion in foreign exchange outflow. India had last fiscal imported 13.1 million tonnes of oil from Iran.



India has been, since July 2011, paying in euros to clear 55 per cent of its purchases of Iranian oil through Ankara-based Halkbank. The remaining 45 per cent due amount was remitted in rupees in accounts Iranian oil company opened in Kolkata-based Uco Bank.



Payments in euro through Turkey ceased from February 6 this year and now Iran is paid only in rupees. Rupee payment helps save foreign exchange outgo, thereby reducing CAD. Moily refused to divulge details of his plan to cut oil import bill but said the savings planned will be 1 per cent of the GDP.



India, which in June won another 180-day waiver from the US sanctions after it cut crude oil imports from Iran by over 27 per cent, did not buy any oil from the Persian Gulf nation in first four months of current fiscal as insurance firms refused to provide cover to refiners processing Iranian oil.



Imports have, however, resumed this month with Mangalore Refinery and Petrochemicals Ltd (MRPL) getting the first shipload on August 17.



Indian Oil Corp (IOC) and Hindustan Petroleum Corp Ltd (HPCL) are likely to follow suit shortly while private sector Essar Oil, the other customer of Iranian oil, has continued to import oil from Tehran.



India had in 2012-13 imported 13.14 million tonnes of crude oil from Iran, down from 18.11 million tonnes of 2011-12. Iran was till 2010-11 India's second largest supplier after Saudi Arabia but has since slipped to the sixth place.

Source:-www.deccanchronicle.com

TP adjustment disallowed as comparables chosen by TPO were functionally incomparable and had excessi

IT/ILT-I: Where TPO in course of transfer pricing proceedings made certain addition to ALP determined by assessee, in view of fact that some of comparables selected by TPO were not appropriate on account of functional difference and excessive related party transactions, a part of impugned addition was to be deleted

SEBI makes allotment in demat form mandatory; date of trading approval shall be deemed to be date of

SEBI : SEBI (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2013 - Amendment in regulations 73, 74, 77, 78 and 79

HUF or its Karta not a body corporate and not eligible to become a partner in LLP, MCA clarifies

CL : Section 5 of the Limited Liability Partnership Act, 2008 - Partners - Whether Hindu Undivided Family (HUF)/its Karta can become Partner/Designated Partner (DP) in Limited Liability Partnership (LLP)

CBDT issues modified order on constitution of DRP at specified jurisdictions

IT/ILT : Section 144C of the Income-tax Act, 1961 - Dispute Resolution Panel (DRP) - Reference to - Reconstitution of DRP at specified areas of jurisdiction - Amendment in Order No.1/FT&TR/2013, dated 13-8-2013

ITAT favoured assessee as no contrary material was furnished by revenue to justify TP adjustment

IT/ILT: Commissioner (Appeals)'s order that no TP adjustment was required to be made in respect of international transaction of purchase of edible oil, need not be interfered with in absence of any contrary material on record

Input service credit available on ST paid under reverse charge as it hasn't been treated as output s

ST: Services on which service tax is paid under Section 66A are not treated as "output services" for purpose of CENVAT Credit and tax paid on such services is available as "input credit" provided said services are used as input services

Activities which tantamount to production and not manufacture are also eligible for sec. 80-IB relie

IT: Activities which tantamount to production and not manufacture are also eligible for section 80-IB relief

CIT(A) can't admit additional evidence if AO hadn't been given an opportunity to examine them

IT: Where Assessing Officer had not been afforded opportunity to examine additional evidence, order of Commissioner (Appeals) relying on such evidence was unsustainable, as it violated rule 46A

Gift received by assessee on the occasion of his daughter's marriage isn't exempt from tax

IT : Gift received by assessee on occasion of his daughter's marriage won't be exempt as the word individual appearing in proviso to sub-clause (vi) of sec. 56(2) relates to marriage of assessee and not of his daughter

Discretionary trust gets exemption under sec. 10(15) for interest income earned from RBI relief bond

IT : Exemption of interest income on RBI relief bonds under section 10(15) cannot be denied in case of discretionary trust

An alternate remedy arising from an arbitration clause won't cause automatic refusal of winding up p

CL : Existence of an alternate remedy in terms of arbitration clause, does not necessitate refusal by Court to exercise its discretionary jurisdiction under section 433(e)

M/S YORK EXPORTS (P) LIMITED Vs. COMMISSIONER OF INCOME TAX, DELHI-III

[unable to retrieve full-text content]M/s York Exports Private Limited has filed the present writ petition for quashing of order dated 19th December, 1996 read with order dated 17th August, 1995 passed by Commissioner of Income Tax, Delhi-III. {ad} For more information...

KAHAN UDYOG Vs. COMMISSIONER OF INCOME TAX

ITA No. 56/2000 Page 1 of 4

$~R-24.

* IN THE HIGH COURT OF DELHI AT NEW DELHI

+ INCOME TAX APPEAL NO. 56/2000

Date of decision: 14th August, 2013

KAHAN UDYOG

..... Appellant

Through Mr. Prakash Kumar, Advocate.

versus

COMMISSIONER OF INCOME TAX

..... Respondent

Through Mr. Sanjeev Rajpal, Sr. Standing

Counsel.

CORAM:

HON'BLE MR. JUSTICE SANJIV KHANNA

HON'BLE MR. JUSTICE SANJEEV SACHDEVA

SANJIV KHANNA, J. (ORAL):

This appeal by the assessee-M/s Kahan Udyog relates to block

period 1st April, 1985 to 16th November, 1995 and arises out of the

order of the Income Tax Appellate Tribunal dated 31st December, 1999

in IT(SS) A. No. 32/Del/96. The appeal was admitted vide order dated

9

th May, 2001 and the following substantial question of law was

framed:-

“Whether the Tribunal’s conclusions as regards

the additions under Section 69C of the IncomeTax Act, 1961 are sustainable?”

Rectification order to disallow interest on refund is invalid if issue as to attribution of delay is

IT : Where issue of attribution of delay to whom, was a debatable issue, rectification order disallowing interest on refund under section 244A was invalid

In case of reverse charge credit can't be denied even if invoice doesn't comply with prescribed form

ST/ECJ: Where an assessee, as recipient of services, is liable to pay tax under reverse charge, department cannot deny credit taken by him on ground that invoice is not drawn up as per rule 4A of Service Tax Rules, 1994

Making it Less Taxing

As we approach the last quarter of the financial year, most salaried individuals would have received a deadline from their employers to submit their proof of investments that qualify for deductions from their taxable salary income. It can be a taxing affair if you don't plan ahead.

Most of us are aware of popular investment avenues, such as life insurance policies, Public Provident Fund (PPF), National Saving Certificates (NSC) etc., which are eligible for deduction under Section 80C of the Income-tax Act, 1961. However, we tend to ignore a few other investments and expenditures that may also be eligible for tax concessions. It could save you a neat sum for a profitable investment. While making a tax-saving investment, evaluate the need and risk associated with each. Also, revisit these avenues keeping the Direct Taxes Code in mind, which is proposed to be effective from 1 April 2012.

Here is a list of some of the investments and expenditures that qualify for exemptions/ deductions under various sections of the Act.

Investments eligible under Section 80C/80CCC/80CCD

These investments are subject to a limit of Rs 1 lakh per financial year.

Life insurance premiums: Deduction is available under Section 80C with respect to premium paid towards life insurance policy for self, spouse and any child. It may be noted that no deduction is available for any late-fee charges paid. The amount received on maturity of the policy is exempt from tax, subject to prescribed conditions.

While making atax-saving investment, evaluate the risk associated with each product. Also, revisit these avenues keeping in mind the Direct Taxes Code, which is proposed to be implemented from 1 April 2012.

Public Provident Fund (PPF): Contribution to a PPF account in the name of self, spouse and a child is eligible for deduction under Section 80C. Earlier the annual investment in PPF was limited to Rs 70,000, thereby limiting the tax deduction also. However, with effect from 1 December 2011, this limit has been raised to Rs 1 lakh per year. The annual accretion on the account is also not taxable.

National Saving Certificate (NSC): The amount invested in NSC is eligible for deduction under Section 80C. Further, the interest accrued annually on NSC, though taxable, is deemed to be re-invested and qualifies for deduction (except in the year of maturity).

Parizad Sirwalla is a partner at KPMG

Parizad Sirwalla is a partner at KPMG

Five-year bank fixed deposits (FDs): FDs with a scheduled bank, under a notified scheme, with a tenure of five years is eligible for deduction under the above section. However, the interest accrued on the FDs is subject to tax laws.

Post office five-year time deposit (POTD) scheme: POTDs are similar to bank FDs. A five-year POTD qualifies for deduction under Section 80C. However, interest accrued on the same is entirely taxable.

Senior Citizen Savings Scheme (SCSS): SCSS is another scheme eligible for deduction under Section 80C. However, it is intended only for senior citizens. The interest accrued on the same is entirely taxable.

Unit-linked insurance plans (Ulip): Investments in Ulips in the name of self, spouse and a child, which covers life with benefits of equity investments, is eligible for deduction under Section 80C.

Mutual fund (MF) and Equity-linked savings scheme (ELSS): Subscription to MFs and ELSSs qualifies for deduction under Section 80C. Currently, dividend and long-term capital gains on equity-oriented funds where securities transaction tax is paid are exempt from tax.

Home loan principal repayment: Equated monthly installments that are paid to repay home loans consists of two components-principal and interest. The principal component qualifies for deduction under Section 80C, provided the loan is taken from a prescribed lender (banks, PSU, etc.). The interest component can save your income tax as a deduction from rental income, subject to prescribed conditions.

Stamp duty and registration charges for a home: Stamp duty and registration charges paid for transfer of property qualify for deduction under Section 80C.

Tuition fees: Tuition fees paid for full-time education in an Indian university, college, school, educational institution, for any two children are eligible for deduction under Section 80C. It is pertinent to note that tuition fees do not include payment towards any development fees or donation or payment of similar nature.

NABARD rural bonds: Investment in rural bonds issued by NABARD qualify for deduction under section 80C.

Contribution to pension funds: Contributions to certain pension funds of LIC or any other insurer are eligible for deduction. Contribution to the National Pension Scheme is also eligible for deduction.

Other deductions

Infrastructure bonds: The amount invested in these qualify for additional deduction up to Rs 20,000 per annum (pa) under Section 80CCF.

Medical insurance premium: Premium paid for self, spouse and dependent children can be deducted up to Rs 15,000 per annum (pa) and an additional Rs 5,000 can be discounted if they are senior citizens. You can claim a deduction of up to Rs 15,000 for premium paid for your parents' health cover, with an additional deduction of up to Rs 5,000 pa for senior citizens.

Maintenance, including treatment, of disabled dependent: Deduction of Rs 50,000 pa is available for expenditure incurred for treatment of a disabled dependent or for an amount deposited in a prescribed scheme (Section 80DD). The deduction is increased to Rs 1 lakh if the disability is severe-over 80%.

Medical treatment: Deduction of up to Rs 40,000 (Rs 60,000 for senior citizens) is available under Section 80DDB per financial year on medical expenses incurred for treatment of specified diseases (self and dependent).

Donations: An amount donated to a prescribed charitable institution qualifies for deduction under Section 80G. It would need to be claimed at the time of filing your personal tax return.

Rent: This deduction is usually associated with salaried taxpayers. However, a deduction is also allowed for individuals who do not receive HRA under Section 80GG. The deductible amount is the rent paid in excess of 10% of total income-subject to a maximum of Rs 2,000 per month or 25% of total income, whichever is less.

Interest on education loan: Interest paid on an education loan qualifies for deduction under Section 80E. It is available for eight years starting from the financial year in which the individual starts paying interest.

Notification No 38 (RE-2013) / 2009-2014 dated 26-08-2013

Government of India

Ministry of Commerce & Industry

Department of Commerce

Udyog Bhawan

Notification No. 38(RE-2013)/2009-2014

New Delhi, the 26^th August, 2013

Subject : Import policy of Worked monumental or building stone (except slate) and articles thereof, other than goods of heading 6801; mosaic cubes and the like, of natural stone (including slate), whether or not on a backing; artificially coloured granules, chippings and powder, of natural stone (including slate)

S.O.(E) In exercise of the powers conferred by Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 read with Para 2.1 of the Foreign Trade Policy, 2009-2014, the Central Government hereby makes the following amendments in the Schedule 1 (Imports) of the ITC (HS) Classifications of Export and Import Items.

2. Existing policy conditions (prior to this amendment) as available at page 545-546, for the ITC HS Codes 68022310, 68022390, 68022900, and 68029300 of Chapter 68 of ITC(HS) Classifications of Export and Import Items are extracted below (earlier policy conditions) :
   

   “Import permitted freely “

   
   


3. After amendment the entry would read as below (amended policy conditions) :
   

   “Import permitted freely provided cif value is US$ 80 & above per square metre.”

   
   


4. The effect of this Notification :-
   

   Now the import of items under the ITC HS Codes specified above is permitted freely if cif value is US$ 80 and above per square meter.

   
   

(Anup K. Pujari)

Director General of Foreign Trade

E-mail : dgft@nic.in

[Issued from F. No. 01/89/180/ Misc-06/AM-08 /PC-2(A)]

Rectification order to disallow interest on refund is invalid if issue as to attribution of delay is

IT : Where issue of attribution of delay to whom, was a debatable issue, rectification order disallowing interest on refund under section 244A was invalid

Notification No 36 (RE-2013) / 2009-2014 dated 26-08-2013

Government of India

Ministry of Commerce & Industry

Department of Commerce

Notification No. 36 (RE-2013)/2009-2014

New Delhi, Dated: 26^th August , 2013

Sub.: Policy for allocation of quota for import of Rough Marble Blocks for Indian companies investing abroad in marble mining, for the year 2013-14.

S.O. (E) In exercise of powers conferred under section 5 of the Foreign Trade (Development and Regulation) Act, 1992 as amended, read with paragraph 2.1 of the Foreign Trade Policy, 2009-14, the Central Government hereby makes the following amendments in Schedule-I (Imports) to the ITC (HS) Classifications of Export and Import Items:

2. Import Licensing Note No. (5) inserted at the end of Chapter 25 through Notification No.20 of 9^th October 2012 , is amended to read as :
   

   “5. Facility for Indian companies who have invested in Mining abroad .

   
   

   This will be subject to conditions laid down as under:

   
   

   5(a): Eligibility;

   
   
   
   
   1. Mining company where such investment is made must be a 100% subsidiary of the Indian company.
   
   
   2. Minimum investment should be Rupees 10 crores as on 31.3.2013 and is subsisting.
   
   
   3. Such investment should only be in plant and machinery. No plant and machinery on leased basis will be considered.
   
   
   4. The overseas mining company should be operational and have the operating license in its own name.
   
   
   
   

   (b) Quantity to be permitted;

   
   
   
   
   1. Only marble blocks produced from its own quarries overseas shall be allowed for import.
   
   
   2. The total annual import quantity will be limited to 1 lakh MT .
   
   
   3. The quantity to be allocated for import per applicant shall not exceed 30,000 MT or the total quantity of marble mined and sold from its overseas mines in the previous financial year, whichever is less. ( Reference to financial year would be Indian financial year i.e. 1^st April 2012-31^st March 2013)
   
   
   4. If the quantity to be imported by the eligible applicants exceeds 1 lakh MT, then allocation will be on a pro rata basis. Distribution of pro rata allocation will be on the basis of total sale of quantity produced in the previous financial year from its mines overseas. Quantum of sale shall be certified by an independent Chartered Accountant and will be accompanied with annual accounts of foreign mines (subsidiary of Indian Company).
   
   
   
   

   (c) Filing of Application;

   
   

   Applications should reach DGFT(HQ) office at Udyog Bhavan, New Delhi before 5 pm on 5^th September 2013.

   
   

   (d) Floor Price;

   
   

   Such imports shall be subject to a floor price of US$ 325 per Metric Tonne (MT) .

   
   

   (e) ITC HS Codes;

   
   

   Such imports shall be permissible under ITC HS Codes 25151100 and 25151210.

   
   

   (f) Actual User Condition;

   
   

   All authorisations shall be subject to actual user condition.

   
   

   (g) Monthly Return;

   
   

   Authorisation holders shall file monthly returns regarding imports made by them, to the concerned Regional Authority of DGFT by the 15^th of each succeeding month in which authorisation is obtained (for example if a authorisation is obtained on 13^th September, the authorisation holder will file monthly return by 15^th of October and for each month thereafter). This is a mandatory requirement.

   
   

   (h) Validity of Import authorisation;

   
   

   Authorisation for Import of marble will have a validity of 12 months from date of issue.

   
   


3. Effect of this notification:
   

   Import Policy for allocation of quota for import of Rough Marble Blocks by Indian companies investing abroad in marble mining has been notified with an annual quota of 1 lakh MT.

   
   

(Anup K. Pujari)

Director General of Foreign Trade

E-mail: dgft@nic.in

(Issued from File No. F. No. 01/53/162/293/Marble/ M-3/AM 13/IC)

Notification No 37 (RE-2013) / 2009-2014 dated 26-08-2013

Government of India

Ministry of Commerce & Industry

Department of Commerce

Notification No. 37 (RE-2013)/2009-2014

New Delhi, Dated: 26^th August, 2013

Sub.: Policy for issue of import licenses of Rough Marble and Travertine Blocks for the Financial year 2013-14.

S.O. (E) In exercise of powers conferred under section 5 of the Foreign Trade (Development and Regulation) Act, 1992 as amended, read with paragraph 2.1 of the Foreign Trade Policy, 2009-14, the Central Government hereby makes the following amendments in Schedule-I (Imports) to the ITC (HS) Classifications of Export and Import Items:

2. Import Licensing Note No. (2) inserted at the end of Chapter 25, will be amended to read as : “Import of rough marble blocks will be subject to conditions laid down in Notification No.37 dated 26^th August, 2013.”


3. Conditions for import of marble.
   
   
   
   1. The following Policy provisions will be applicable for import of Rough Marble Blocks and Travertine for the financial year 2013-14. This will supersede earlier Policy /Guidelines for issue of import licenses of Rough Marble Blocks.
   
   
   2. Attention is invited to ITC HS Codes 25151100 and 25151210 indicated in Schedule-1 (Imports) of ITC (HS) Classifications of Export and Import Items. As per the provisions contained therein, import of Marble and Travertine – Crude or Roughly trimmed and merely cut, by sawing or otherwise, into blocks of a rectangular (including square) shape is restricted and subject to import licensing procedures.
   
   
   3. The applications for import license for import of rough marble blocks and travertine under the above mentioned ITC HS Codes will be considered in the following manner: -
      
      
      
      1. Eligibility of the units will be decided based on the following three criteria:
         
         
         
         1. Units who have installed marble gangsaw machine (except 100% EOUs and units in SEZ) on or prior to 31.3.2013. The marble gangsaw machine shall be in the name of the applicant only. No gangsaw on “Lease Basis” shall be considered for the purpose of allocation of import entitlement.
         
         
         2. The Units should have been in operation for 5 years on or prior to 31.3.2013.
         
         
         3. All eligible units as per (a) above should have cumulative turnover of atleast Rupees Five crores ( Rs 5 Crores) during the 5 years period i.e. financial years 2007-08 to 2011-12 irrespective of whether it is from domestic or foreign sources in respect of processed marble slabs/tiles only.
         
         
         
         
         
      
      
      2. Floor Price-
         

         Licenses for import of crude or roughly trimmed marble and travertine blocks or merely cut, by sawing or otherwise into blocks of a rectangular (including square) shape shall be subject to a floor price of US$ 325 per Metric Tonne (MT), which shall be endorsed on all licenses.

         
         
      
      
      3. Entitlement:
         

         The total import of Rough Marble and Travertine blocks under ITC HS Codes 25151100 and 25151210 will be subject to a ceiling of 6 lakh MT for the whole of the licensing year, 2013-14. Eligible units will be entitled for an import license on the basis of cumulative turnover ( indigenous or foreign) of atleast Rupees 5 crores of processed marble slabs/tiles only, over the previous five financial years 2007-08 to 2011-12. The quantity so calculated will however be subject to the overall ceiling of 3000 MT for the first gang saw and 1500 MT for every subsequent gang saw.

         
         
      
      
      4. Actual User Condition:
         

         All licenses shall be subject to actual user condition. Modalities for submitting hard copies of the applications is attached as Annexure 1 to this notification.

         
         
      
      
      5. Monthly Return
         

         License holders shall file monthly returns regarding imports made by them, to the concerned Regional Authority of DGFT by the 15^th of each succeeding month in which license is obtained (for example if a license is obtained on 13^th September, the license holder will file monthly return for imports made in September by 15^th of October and for each month thereafter by the 15^th ). This is a mandatory requirement.

         
         
      
      
      6. Validity of Import licences
         

         Licenses for Import of Marble and Travertine will have a validity upto 30^th September 2014.

         
         
      
      
      
      
   
   
   
   
   


4. Effect of this notification:
   

   Import policy of Rough Marble and Travertine blocks for the year 2013-14 has been notified with a quota of 6 lakh MT and an MIP of US$ 325 per MT .

   
   

(Anup K. Pujari)

Director General of Foreign Trade

E-mail: dgft@nic.in

(Issued from File No. 01/53/162/293/Marble/M-3/AM13/IC)

Annexure-1 to Notification No: 37 (RE-2013)/2009-14 Dated : 26^th August,2013

Modalities for submitting applications for grant of quota for import of rough marble blocks

1. Eligible applicants will submit hard copies of their application, in the relevant Aayaat Niryaat Form, along with the documents prescribed therein, to concerned RA for import of rough marble blocks for the financial year 2013-14. RA will then forward the applications to DGFT HQ for scrutiny and allocation of quota. Calendar of events is attached as Annexure 2 to this Notification.


2. The following conditions would need to be followed and documentary proof submitted to concerned RA along with the application for grant of quota :-
   
   
   
   1. The Marble gangsaw in the Unit should be in the name of the Unit and established on or prior to 31.3.2013, as certified by State Industry Department (District Industry Centre). The gang saw should not be ‘on Lease’ from any other party. The marble gangsaw machine should have linear movement and should have minimum 60 steel blades impregnated with diamond segments and be used only for cutting marble blocks into slabs;
   
   
   2. SSI/SIA Registration Certificate should show the Unit being in operation on or prior to 31.3.2008;
   
   
   3. The list of equipments / capital goods (other than Marble gangsaw) set up by the applicant in the Unit for processing marble slabs / tiles should be prior to 31.3.2008, as per Balance Sheet as on 31.3.2008, duly certified by a Chartered Accountant;
   
   
   4. Income Tax Return for the financial year 2007-08 indicating processing of marble by the Unit duly certified by a Chartered Accountant;
   
   
   5. A Certificate indicating domestic/foreign sales turnover of marble slabs / tiles of years 2007-08, 2008-09, 2009-10 , 2010-11 and 2011-12; and
   
   
   6. A copy of Chartered Accountant certified statement of accounts, filed along with Balance Sheet to Income Tax authorities for each of the years i.e. 2007-08, 2008-09, 2009-10 , 2010-11 and 2011-12 (in order to prove cumulative turnover from domestic or foreign sources) of marble slabs / tiles of atleast Rs. 5 crore in the last 5 years).
   
   
   7. The sale against Form H and other relevant Forms, job work income earned by any unit sawing marble blocks of third parties into slabs/tiles and the amount of excise duty, service tax and sales tax/VAT paid on such indigenous sales turnover of marble slabs/tiles may also be included for calculating indigenous sales turnover of the applicant. An applicant would need to submit certified copies of VAT/Sales Tax returns filed by the applicant for each of the 5 financial years indicating the indigenous sales turnover of marble slabs/tiles along with the income tax returns for the same period. No trading turnover shall be considered.
   
   
   8. With regard to calculation of indigenous sales turnover, it is clarified that the turnover will include the net sales after deducting the sales returns from the gross sales. It is also clarified that the turnover of the applicant only shall be taken into consideration and the turnover of group concerns/ sister concerns/ subsidiaries etc. shall not be counted for calculating the turnover.
   
   
   9. The applicant must not be on DEL (Denied Entities List).
   
   
   10. In case any applicant/ firm is found to have furnished wrong/ false information or made any misrepresentation, then it shall be debarred from the allocation for import of marble and also liable for penal action under the provisions of FTD&R Act 1992,as amended.
   
   
   
   
   


3. The last date for receipt of hard copy of application with complete documents with RA shall be 5^th September, 2013.

Annexure-2 to Notification No: 37 (RE-2013)/2009-14 Dated : 26^th August,2013

CALENDAR OF EVENTS

1.	Notification to be issued on	26th August, 2013
2.	Receipt of Application in RA	Upto 5th September, 2013
3.	Forwarding of Applications to DGFT HQ by RA’s	Upto 9th September, 2013
4.	Declaration of Allocation	19th September, 2013
5.	Issuance of Licences	20th to 25th September, 2013

ITO vs. Bhagwan Agarwal (ITAT Agra)

ICAI directed to initiate disciplinary proceedings against CA for suppressing information and obtaining order by fraud The assessee bought and sold shares and claimed that he had earned capital gains which were exempt u/s 54F. When the AO alleged that the transactions were bogus and entered into for converting black money into white, the assessee surrendered the claim for exemption u/s 54F and offered the capital gains to tax. The AO levied penalty u/s 271(1)(c) on the ground that the surrender of income was not voluntary. This was upheld by the Tribunal. The assessee filed an appeal before the High Court which was dismissed. The assessee thereafter filed a Miscellaneous Application before the Tribunal on the ground that as the AO had not specified whether the penalty was for concealment or for furnishing inaccurate particulars, penalty could not be levied. The Tribunal allowed the MA and deleted the penalty (order included in file). The Department then filed a MA stating that as the first order of the Tribunal had merged in the order of the High Court, the subsequent MA was not maintainable. The assessee accepted that he was advised by his CA not to disclose the fact of dismissal of the appeal by the High Court in the MA so filed. The CA argued that though the fact of dismissal of the appeal was not stated in the MA he had not concealed the fact because it was known to the Department. HELD by the Tribunal allowing the MA: In the last 40 years, a new creed of litigants has cropped up. Those who belong to this creed do not have any respect for truth. They shamelessly resort to falsehood and unethical means for achieving their goals. In order to meet the challenge posed by this new creed of litigants, the courts have, from time to time, evolved new rules and it is now well established that a litigant, who attempts to pollute the stream of justice or who touches the pure fountain of justice with tainted hands, is not entitled to any relief, interim or final. On facts, it was the duty of the assessee to disclose the decision of the High Court to the Tribunal while moving the MA and by not doing so, they did not come to the ITAT with clean hands. The assessee and his CA are guilty of fraud for deliberately suppressing the fact that the High Court had dismissed the assessee’s appeal and that the MA was not maintainable. The MA order is thus a nullity and non est in the eyes of law. The CA’s conduct amounts to professional misconduct and requires disciplinary action by the ICAI.