RBI asks banks to extend benefit of high interest rates on FCNR deposits till January 31, 2013

BANKING : Interest Rates on FCNR (B) Deposits

RBI allows interest payments on savings and term deposits more frequently to woo depositors

BANKING: Periodicity of Payment of Interest on Rupee Savings/Term Deposits

SEBI further extends time limit for alignment of existing employee benefit scheme with SEBI ESOP Gui

SEBI : SEBI Circulars No. CFD/DIL/3/2013 Dated 17-1-2013 and CFD/DIL/7/2013 Dated 13-5-2013 - Extension of Time Line for Alignment

RBI extends date of applicability of deregulated interest rates on NRE deposits till January 31, 201

BANKING : Deregulation of Interest Rates on Non-Resident (External) Rupee (NRE) Deposits

Vodafone’s case: HC puts ball in DRP’s court to decide applicability of TP provisions on issue of sh

IT/ILT : Requirement of grant of personal hearing to assessee by AO before referring the matter to TPO for determining ALP has to be read into section 92CA(1) in cases where the assessee challenges the very jurisdiction to tax under Chapter X (transfer pricing provisions). Since, in the instant case, AO had already made the draft assessment order and supported it in affidavit before HC on merits, assessee permitted to file objections regarding applicability of Chapter X to DRP

No penalty on employer for TDS default from medical allowances paid to employees prior to incurrence

IT: No tax can be recovered from employer on account of short deduction of tax at source under section 192 on amount paid towards medical expenditure, if a bona fide estimate of salary taxable in hands of employee is made by employer

HC upheld Tribunal’s order rejecting appeal of assessee due to non-compliance with pre-deposit requi

Excise & Customs: Although section 129E of Customs Act, 1962 does not expressly provide for rejection of appeal for non-deposit of duty or penalty, yet it makes it obligatory on appellant to deposit duty or penalty, pending appeal, failing which Appellate Tribunal is fully competent to reject appeal

Mother is natural guardian even during lifetime of father; clubbing provisions not unconstitutional

IT: Sub-section (1A) of section 64, including clause (a) of Explanation to said sub-section is constitutionally valid

MRTP Commission can’t determine manufacturing defects of a product; informant to establish price man

MRTP : Questions of manufacturing defects, non-performance and deficiency of service are not to be determined by MRTP Commission/Tribunal; informant/applicant has to establish effect on competition or manipulation of prices or conditions of delivery resulting in any unjustified costs or restriction on consumers

On remand, demand ceases to be ‘Governmental due’ and can’t be recovered

Excise & Customs : Where entire demand has been remanded back to adjudicating authority to reconsider issue afresh, there are no Government dues pending from assessee in such matter and same cannot be recovered

Demolition of old structure to construct new house won’t be deemed as repair and maintenance; no ST

ST/UK VAT: Demolishing of old retaining wall and construction of new and better one in its place cannot not fall into category of repair or maintenance because if we repair or maintain a thing, that thing must still exist; said work was an alteration of whole concept of house and was exempt from service tax

Only profit embedded in purchases would be charged to tax if purchases weren’t bogus but were made i

IT: Where purchases were not bogus but were made from parties other than those mentioned in books of account, not entire purchase price but only profit element embedded in such purchases can be added to income of assessee

No TP adjustments for notional interest if loan granted to affiliates was eventually converted into

IT/ILT: Where assessee granted loan to its foreign subsidiary company which was subsequently converted into equity capital, in view of fact that as per loan agreement interest was not chargeable in such a situation, addition made by TPO/Assessing Officer on account of notional interest was to be set aside

‘Hearing aids’ enhance quality of hearing of handicaped persons; exempted from VAT

ST/VAT : Since 'Hearing aid' enhances quality of hearing of a person suffering from auditory handicap; therefore, it should be treated as an aid/ implement used by handicapped persons and accordingly, exempt from VAT

Govt Okays More Duty-Free Imports From Poor Nations

Ahead of next week's ministerial meeting of the World Trade Organization (WTO) in Bali, the government on Friday said it will allow duty-free and quota-free import of over 96% of the goods from least developed countries (LDCs), a move that is aimed at embarrassing the US that has for years resisted allowing greater access for foods from poor countries to protect its domestic industry.



The US, the world's largest trading nation, allows 78% of the goods to come duty-free and quota-free, compared to 85% of the goods covered by India. On Thursday, the Union cabinet that discussed India's strategy for Bali, also endorsed the move to increase the coverage, commerce & industry minister Anand Sharma told a news conference.



Although the decision comes days before the WTO meet, the proposal had been in the pipeline for several months. The move before the ministerial is seen as new-found aggression from India, aimed at cementing its ties with LDCs ahead of the ministerial meeting. Traditionally, the US and the European Union have offered sops before a WTO meet to wean away support from the poor countries, while developing countries such as India have merely offered support and technical assistance in training negotiators.



On Friday too, Sharma said that India endorsed the stance taken by the LDCs, for whom duty-free quota-free exports is a key demand as they seek to become more prominent players in the global trading arena, dominated by the developed countries and a handful of developing countries such as China.



In 2005, WTO members had agreed to make it mandatory for developed countries, and optional for developing countries, to give duty- and quota-free market access to all exports from LDCs. They insisted on being allowed to exclude up to 3% of tariff lines from this so-called 'Duty Free Quota Free Market Access' (DFQFMA) initiative, to protect sensitive sectors. Currently over two dozen countries use the duty-free and quota-free facility offered by India, which is available as long as they retain LDC status. The cabinet decision will be notified soon, Sharma said.



Inset: No compromise on food security: Sharma



New Delhi: In its first public statement on the WTO ministerial meeting, the government on Friday said it will not compromise its position on food security even if subsidy limits are breached.



"There are issues which are of paramount importance to India. India will secure and protect the right to food security of the poor people and India will defend its resource for poor and subsistence farmers. These are issues on which India shall never compromise," Sharma told a press conference, while promising to constructively engage at the negotiations.



The minister, who is leading the Indian delegation, said that India is going to insist on a "peace clause" till a permanent solution is found even as it wanted a change in the way subsidies are calculated. "In Bali, India expects all countries to commit to negotiating all issues for a permanent solution."



At the same time, he said there were 78 areas of differences in the proposed trade facilitation agreement, with at least three issues on which India had concerns.



Source:- timesofindia.indiatimes.com

Payment of interest by knocking it off against any sum recoverable from creditor is 'actual payment'

IT: In terms of section 43B(d), if interest is paid not by actually receiving amount from loan advancing person or institution but is paid out of fund lying in any another account of assessee with such creditor, it amounts to actual payment and disallowance under section 43B can not be made in respect of said payment

Harley Davidson India To Export Street 750

Harley Davidson India will begin assembling the Street 750 at its facility in Bawal, Haryana, from the second quarter of 2014 and also plans to export it to Europe.



India is the only country outside the US to be making the new bike, which is built on the completely new ‘Street’ platform, and this will be the first HD product to be exported from the facility.



The first Harley Davidson member in the sub-Rs-5-lakh segment, the Street 750 will be unveiled at the India Bike Week in Goa in early January, following which it will be showcased at the forthcoming Delhi Auto Expo.



In Pune to inaugurate HDI’s 11th dealership in India, Anoop Prakash, Managing Director HD India, said commercial deliveries of the Street 750 will begin by April or May of 2014, adding that the Made-in-India bike will also be exported to Italy, Portugal and Spain. Total shipments of the model (US and India) are pegged between 7,000 and 10,000 units.



To enable assembly of the Street 750, Harley Davidson will increase its investment in the Indian facility by around 35 per cent. At present it assembles nine of the 11 models it sells in the country and says it expects sales at the end of 2013 to touch 4,000 units since the 2010 launch.



India is already on the global sourcing map of the American heavy bike maker, and locally assembled motorcycles already have some Indian content. The plan is to increase this with time, Prakash said.



Another revenue stream for Harley Davidson is merchandise and accessories. “Globally this accounts for around 18 per cent of total sales, including 5 per cent for riding gear alone, and this is more or less also the case in India,” he added.



HDI will inaugurate two new dealerships in Goa and Mumbai over the coming weekend, and plans to add three more next year to take the total to 16. Amongst the locations being considered are tier-2 and 3 towns including Surat, Coimbatore, Guwahati and Kozhikode.

Source:- thehindubusinessline.com

Focus On Export Of 'Made-In-India' Electrical Products: Ieema

Electrical equipment manufacturers' apex body today said increasing the focus on domestically made products can help double exports in the next three years.



"The prospects of exports of 'made-in-India' look good for domestic players and can help double exports in the three years," Indian Electrical & Electronics Manufacturers Association ( Ieema) Chairman Sanjeev Sardana said in a statement.



The Rs 1.30-lakh crore electrical equipment industry has, after four consecutive quarters of negative growth, shown a 2 per cent positive growth in the first quarter of FY14. This has been largely attributed to increase in exports of electrical equipment, he said.



Currently, Chinese products enjoy a market share of 45 per cent in the country's electrical equipment imports.



"The quality of domestically manufactured products has improved in the recent times. These products have seen a wider acceptance in international markets, especially in Africa and West Asian countries. We are working towards making India an export hub for electrical equipment," Sardana said.



Exports growth is also visible in developed countries like the US, Germany, Britain, Australia and Canada, apart from the UAE, Saudi Arab, Nigeria and Kenya.



"This clearly shows the increasing acceptability of 'made-in-India' brand with desired quality and competitive cost in both developed and developing countries," he added.

Source:- economictimes.indiatimes.com

Urea Import Up 25% To 50.37 Lakh Tonne Till Oct

Urea imports have increased by 25 per cent to 50.37 lakh tonnes in the April-October period of the current fiscal as demand for the soil nutrient has increased on normal monsoon this year.



“India had imported 40.14 lakh tonnes of urea in the April-October period in 2012-13 fiscal,” a senior official of the Fertiliser Ministry said.



The country had imported 80.44 lakh tonnes of urea in 2012-13 at an average cost of $ 417 per tonne.



However, in the current fiscal the average price at which urea has been imported so far stood at $ 340 per tonne, lower than the last year’s average price, the official added.



Urea is imported mainly by three canalising state agencies — Indian Potash Ltd, Metals and Minerals Trading Corporation of India and State Trading Corporation.



Besides these three state trading enterprises, the country also has off-take agreement for import of urea with OMIFCO in Oman, which is a joint venture project of IFFCO, Kribhco and Oman Oil Company SAOC.



Urea demand is expected to remain high in the current rabi season, as total area sown under rabi crops has so far increased by 7 per cent to 314.24 lakh hectares, while area under wheat has risen by 25 per cent to 127.47 lakh hectares.



Urea is provided to farmers at a fixed subsidised maximum retail price (MRP) of Rs 5,360 per tonne. The difference between the cost of production and MRP of urea is provided as subsidy. The domestic production of urea stands at about 220 lakh tonne.

Source:- thehindubusinessline.com

Import Duty Hike Talk Hits Edible Oils

29-Nov-2013

Speculation over a possible hike in edible oils’ Customs duty fuelled sentiments in the edible oils market on Friday. But slack demand, selling pressure in indigenous oils and a weak futures market kept prices stable on Friday.



Barring palmolein, which increased by Rs 2 and rapeseed oil which declined by Rs 2, all other edible oils remained unchanged. The volume remained thin, said sources.



A broker said: “On hopes of import duty hike, a leading refinery stopped offering palmolein and super palmolein, while other refineries continued offering as demand was subdued. Needy stockists bought a about 80-100 tonnes of palmolein at Rs 598-600 for ready delivery in Mumbai and 250-300 tonnes of palmolein at Rs 592-596 ex-JNPT for December 10.



In producing centres, soyabean supplies are limited, but cotton supplies from the new season have been rising in spot markets that put pressure on edible oil prices. Soyabean arrivals are also likely to jump in the coming days.”



Towards the day’s close, Liberty was quoting super deluxe palmolein at Rs 650, soyabean refined oil at Rs 680 and sunflower refined oil at Rs 765.



Ruchi quoted palmolein at Rs 610, soyabean refined oil at Rs 670 and sunflower refined oil at Rs 721.



Allana was quoting palmolein at Rs 608 for December 10, super palmolein at Rs 625, super deluxe at Rs 645, soyabean refined oil at Rs 675 and sunflower refined oil at Rs 745. In Rajkot, groundnut oil was quoted at Rs 1,300 (Rs 1,270) for telia tin and loose (10 kg) was Rs 825 (Rs 810).



Soyabean arrivals were 4 lakh bags and prices were Rs 3,600-3,750 in Maharashtra while in Madhya Pradesh it was Rs 3,700-3,875 ex mandi and Rs 3,900-80 plant delivery.



Mustard seed arrivals were 85,000 bags and its prices were Rs 3,350-3,700.

Source:- thehindubusinessline.com

Sugar Output Likely To Fall By 10-15%

As the impasse between the government and millers continued in Uttar Pradesh, analysts said India’s sugar output in 2013-14 could drop 10-15 per cent on a year ago if crushing did not start in 15 days. In Maharashtra and Karnataka, too, crushing has not started, as the farmers are demanding a higher cane price.



However, it might not have any impact on prices or supplies as the opening stock of sugar, nine million tonnes, is much more than required, said the chairman of the Commission for Agricultural Costs and Prices, Ashok Gulati. “We have excess stock and a 10-15 per cent cut in production would bring the market to equilibrium.” “The more the cane stands in the field, there is a possibility of production getting impacted, as the sucrose in those would go down,” an expert said.



Indian Sugar Mills Association on Friday said till November, 0.80 million tonnes of sugar was produced in the country, 67 per cent less than last year, as 208 of India’s 400-odd sugar mills started crushing. On Thursday, Food Minister K V Thomas said there was no impact on production, but conceded output could fall if the impasse continued and the farmers did not bring the cane to the mills. He said production in the 2013-14 crop marketing year (October-Sept-ember) was expected to be 24.4 mt, 2.7 per cent less a year ago.



However, this drop is due to drought in Maharashtra and Gujarat last year and not because of the current logjam between millers and sugarcane growers.



India’s sugar production in 2013-14 is estimated at 24.4 million tonnes, while demand is estimated at 23.5 million tonnes. “The difference between demand and supply of sugar is expected to be around 0.85-0.90 million tonnes,” Thomas said. He said the old five-year cycle of excess and deficient production in sugar is over.



The impasse of sugarcane pricing has impacted crushing with as more than 70 of the 99-odd private mills in Uttar Pradesh have suspended their operation. The crushing had to start from middle of November.

Source:- business-standard.com

No unfair trade practice if manufacturer restricts life time warranty to 12 years and it mentions so

MRTP : Where company manufacturing kitchen chimneys had specified in its owners manual that lifetime warranty meant life of 12 years, complaint against company for giving misleading impression was to be dismissed

Rupee Falls Three Paise To 62.44 Vs Dollar

The rupee fell for the second day, dropping three paise to close at 62.44 against the dollar, amid demand for the US currency from oil refiners even as local equities firmed up on optimism about GDP data.

A weak dollar overseas and sustained capital inflows into local stocks limited the rupee’s decline, a forex dealer said.

At the interbank foreign exchange market, the rupee opened higher at 62.30 a dollar from the previous close of 62.41. The local currency moved in a range of 62.20 to 62.64 before settling at 62.44, a fall of three paise. Yesterday, it dropped 27 paise.

The rupee advanced for the second straight week, adding a total of 67 paise. However, the local currency fell 94 paise in November, the first monthly drop in three.

“Month-end oil-related dollar demand kept rupee under pressure. Dollar index was trading weak and was heading towards the third weekly fall in a row, taking cues from mixed economic data,” said Pramit Brahmbhatt, CEO, Alpari Financial Services (India).

The 30-share benchmark Sensex flared up 257 points, or 1.25 per cent, on expectations economic growth is recovering.

The country’s GDP expanded 4.8 per cent in July-September compared with 4.4 per cent in April-June, the government said after the markets closed.

Also, the fiscal deficit in the first seven months (Apr-Oct) of FY14 reached 84.4 per cent of the full-year budget target compared with 71.6 per cent last year.

Overseas investors bought a net Rs 102.91 crore of shares on Thursday, according to provisional data.

The dollar index, consisting of six major global rivals, was down 0.03 per cent.

“The surging Indian stock market and the flat dollar index didn’t provide help to the falling rupee,” said Abhishek Goenka, CEO of India Forex Advisors. “Dollar demand is seen coming back to the markets.”

A dollar-rupee swap window for foreign currency deposits by non-resident Indians is scheduled to close on Saturday. The facility was opened by the Reserve Bank of India on September 10.

Source:- thehindu.com

Advances by rural branches excluded while calculating sec. 36(1)(viia) claim if it didn’t satisfy pr

IT : Where rural branches of co-operative bank did not satisfy definition of rural branch given under section 36(1)(viia), advances made by such rural branches would not qualify for deduction as bad debt

RBI seeks more participation of NBFCs in insurance sector; relaxes investment limit in insurance sec

NBFCs : Participation of NBFCs in Insurance Sector

FIIs or QFIs to seek consent of depositories to invest in credit enhanced bonds beyond 90% of permit

SEBI : Investments by FIIs/QFIs in Credit Enhanced Bonds

Plastic flooring isn’t eligible for credit

Cenvat Credit: Plastic flooring is not eligible for Cenvat credit since it is neither any aid of manufacture nor any inevitable necessity to carry out manufacture

Couple attempted to dupe I-T department with bogus TDS certificates; HC dismissed discharge petition

IT: Where there was a strong prima facie case against assessee that she conspired alongwith her husband and other accused to dupe department for purpose of making unlawful gain by producing bogus tax deducted at source certificates in name of fictions persons, discharge petition could not be allowed

‘Universal Commodity Exchange’ notified as a recognized association for trading in commodity derivat

IT : Section 43(5), Clause (III) of Explanation 2 to Clause (E) of Proviso, of The Income-Tax Act, 1961 - Speculative Transaction - Recognized Stock Exchange - Notified Recognized Stock Exchange

CBDT seeks info on assessee opting for Safe Harbour from returns filed till November 30, 2013

IT/ILT : Section 92CB of The Income-Tax Act, 1961 - Safe Harbour Rules - Power of Board to Make - Analyses of Form 3CEFA Received While Opting for Safe Harbour

E-homes with pre-fitted gadgets akin to other residential units; their developer isn’t dominant play

Competition Act: E-homes with facilities like wifi, finger print security cannot be said to be different from other residential units

Delay caused due to removal of defects in appeal won’t be deemed as delay for filing condonation of

ST : Where appeal was presented in time but defects pointed out by office of appellate authority were removed by way of filing of appeal afresh after a few days from due date, there was no delay so as to warrant filing of application for condonation of delay

Sum paid to import master copy of Oracle software was allowable as revenue expenditure, says HC

IT : Media cost paid for the import of a master copy of Oracle Software used for duplication and licensing is an expenditure of a revenue nature and as such is an allowable deduction

Assessee couldn’t seek refund of ST even if consideration for providing services was written off

ST/UK VAT: If consideration for providing services is written off as bad on account of bad financial condition of service recipient, assessee cannot seek refund/credit of service tax paid earlier on due basis

Higher tax burden on non-resident was’t discriminatory under India-France DTAA

IT/ILT: In view of order passed in case of Dy. CIT v. Sakura Bank (IT Appeal No. 1230 (Bom) of 1995 dated 31-10-2003) higher rate of tax applicable to assessee, a non-resident company, was not violative of non-discriminatory clause, i.e., article 26 of DTAA between India and France

Interest income of NBFCs couldn’t escape tax net if its debtors were found to be financially well of

IT: Where it was apparent from records that debtor companies which had taken loan from assessee, were financially well off and were earning profits during relevant year, Tribunal, merely relying upon order passed in earlier years, could not conclude that assessee was not assessable in respect of interest income because of financial difficulties faced by debtor companies

No credit allowable if no duty was payable on final product

Cenvat Credit : Since no duty was paid/payable on final product (i.e., sugar plant) set up in a foreign country (i.e., Vietnam), therefore, no credit was allowable of duty paid on inputs/machineries/goods used in setting up of that sugar plant outside India

Cash payments to Railways isn’t covered within the ambit of sec. 40A(3)

IT : Payment made to government concern in cash in excess of amount prescribed under section 43A(3) would be allowable

Govt Approves Financial Aid To Kolkata Port Trust

The union cabinet Thursday approved extension of financial assistance to Kolkata Port Trust (KoPT) to meet the dredging expenditure incurred for maintaining the river channel.



"This will make transactions commercially viable for the port users," an official release said here.



The scheme of financial assistance to KoPT towards dredging will be continued for a total amount of Rs.1,501.35 crore for the period from 2012-13 to 2015-16, with effect from April 1, 2012," it added.



An on-account payment up to 90 percent of the amount payable towards financial assistance during the previous year may be made to KoPT in the following years in equal quarterly installments, the statement said.



Source:- smetimes.in

India's Diamond Export Up By 56%

Despite grave concerns in the industry over mixing of synthetic lab-grown diamonds with natural diamond parcels, diamantiares have a reason to cheer ahead of the Christmas season.



As per the latest figures issued by Gems and Jewellery Export Promotion Council (GJEPC), India's polished diamond export has increased phenomenally by 56 per cent year on year to $2.15 billion in October. Majority of the diamonds were exported to the United States, Hong Kong and the United Arab Emirates. However, during the first 10 months of the year, India's polished export rose 26 per cent to $18.278 billion.



Interestingly, in the first 10 months of 2013, import of synthetic lab-grown diamonds more than doubled to $62.3 million. Moreover, polished synthetic diamond import also surged 98 per cent to $69 million.



Sources said most of the synthetic lab-grown diamonds are imported from China and sold in the local markets in Surat and Mumbai. The diamantaires purchase synthetic diamonds from the market and then process them clandestinely in the factories located in Surat, Bhavnagar and Amreli.



Later, the polished synthetic diamonds are mixed with the natural diamond parcels to earn huge profit.



A DTC sightholder said, "There has been a phenomenal rise in the import of synthetic lab-grown diamonds this year. This could be attributed to phenomenal increase in rough diamond prices, forcing some to go for cheap synthetic lab-grown diamonds. The problem starts when these synthetic diamonds are mixed with natural diamond parcels without any disclosures."



A GJEPC office-bearer said, "This year's Christmas season has been very good for diamantaires. We are yet to calculate the total polished diamond export in November."

Source:- timesofindia.indiatimes.com

Turkey Toughens Requirement For Bank Guarantees To Import Diesel

Turkey has toughened the requirement for bank guarantees needed to import diesel in a bid to crack down on what it sees as an increase in tax evasion and smuggling, the customs minister said on Thursday.



The move, which came into effect late last week, is more likely to hit small importers in the short run and create a bottleneck at ports, but it could also damage even big importers' ability to bring in cargoes, traders say.



Diesel importers will now have to obtain a letter of guarantee for each diesel cargo they bring in, and the amount of the letter will have to cover the full value of the cargo plus taxes.



"There was a problem in collecting the Special Consumption tax of these cargoes," Minister Hayati Yazici told reporters, adding that some firms that imported the fuel failed to pay the tax incurred. "We have just started this" measure.



Energy-hungry Turkey consumed around 319,000 barrels per day (bpd) of diesel in 2012, a 6.1 percent increase from 2011, according to Turkish industry figures and data from its energy watchdog EPDK.



Around 175,000 bpd of that amount was imported, making Turkey the biggest importer of the fuel in the Mediterranean market. India, Italy and Greece were its biggest suppliers last year.



OMV Petrol Ofisi, Shell Turcas, BP, Koc Holding's Opet and Total are among the biggest diesel buyers in Turkey.



Traders said the new move was going a bit too far, however, because it usually takes at least six to seven months to obtain a bank letter of guarantee.



"It is a bit of a harsh measure. It hits companies that have been abiding by the law as well," one trader said.



Another Istanbul-based trader said, "If you think about a company which imports like seven to eight cargoes a month, you're talking about millions of liras worth of bank guarantees. That would stretch both the banks and the companies."



Market players expect the government to amend the regulation to avoid slowing or hampering much needed diesel imports.



"Smaller companies could halt diesel imports in the short run as they don't have such a cash balance required by this new regulation. But if it stays in effect longer, the financial burden would accumulate and even harm bigger companies," the second trader said.



Customs Minister Yazici said there were no plans to change the amount required for the bank guarantee.



"But we can help speed up the processing and the refund time of these bank letters. We are working closely with the Finance Ministry on this issue," he added.

Source:- in.reuters.com

Indon Beef Import Cuts Appear Unlikely

28-Nov-2013

Andrew Manners, research analyst with the Perth-based think-tank Future Directions International, said Indonesia has threatened to reduce imports of Australian beef and any cut would be a blow to the struggling cattle industry.



But Australia might not necessarily be in as weak a position as some commentators suggested.



He said Indonesia had been looking to other markets to diversify beef imports for some time and that had become a strategic goal, especially following Australia's controversial suspension of live cattle exports in June 2011.



Brazil and India have been suggested as possible alternative markets but Mr Manners said neither could be viable in the near to medium term.



Both have experienced outbreaks of foot and mouth disease. Indonesian legislation bars imports from countries where the disease exists but amendments could allow import of cattle from disease-free areas of Brazil, as Malaysia now does.



Brazil is a long way away with high transport costs. Indian cattle are cheap but questions have been raised about the quality of their beef, he said.



"So, while the current spying scandal is likely to have further encouraged Jakarta to look to other markets, especially as it seeks to diversify beef imports, any drastic reductions in Australian cattle exports appear unlikely," he said.



Mr Manners said the latest stoush had still hardened Indonesia's resolve to look elsewhere to solve its beef shortage.



"In the short term Indonesia is unlikely to suspend live cattle exports completely," he said.

Source:- news.ninemsn.com.au

If issue in civil suit differs from that in petition alleging oppression, later can’t be stayed pend

CL : Where issue in civil suit differed from that in company petition alleging oppression, later cannot be stayed pending civil suit

India Says Iran Nuclear Deal Eases Crude Oil Import Process

The Iranian oil imports are vital to some Indian refineries. Indian government had devised alternate ways to provide insurance to the tankers. There was limited sovereign guarantee to its insurance companies.



Indian Oil Corporation is the largest importer. For the financial year ending in March next year it plans to import 1.2 million tons of Iranian oil.



An Indian delegation of senior officials from various ministries is expected to visit Iran soon to discuss the oil payment mechanism. India is now expected to clear all dues to Iran for crude oil exports in foreign currency against the earlier agreed part payment in Indian Rupees.



Officials say India is likely to move swiftly and import more crude oil during this period so that it does not have to import oil from other countries which would make it difficult for it's refineries to process as they have been designed to process crude from Iran. India also does not need to use its reserves to meet its growing energy needs.



Bilateral trade between the two countries that is around 15 billion dollars at present is also expected to cross $ 20 billion during the period.



Analysts say now both countries will see greater opportunities to boost smoother trade and open more business channels without financial restrictions in coming months.

Source:- presstv.ir

Indian Rupee Falls 27 Paise To 62.41 On Month-End Us Dollar Demand

The Indian rupee fell for the first time in five days and ended 27 paise lower at 62.41 against the US dollar today on month-end demand from oil importers for the US currency, which strengthened in the overseas market.



The Indian rupee resumed lower at 62.38 per dollar from the previous closing level of 62.14 at the interbank foreign exchange market. It firmed up to 62.26 before ending at 62.41, a loss of 27 paise or 0.43 per cent.



The rupee had climbed to a three-week high of 62.14 yesterday.



There was strong dollar demand from oil refineries. Global crude oil prices fell to a six-month low on a surge in US stockpiles.



In New York, the dollar jumped to a six-month high against the Japanese yen yesterday. The US currency strengthened ahead of the Thanksgiving Day holiday as data showed unemployment claims dropped and consumer sentiment rose.



"Month-end oil-related dollar demand kept rupee under pressure, though local equities traded positively," said Pramit Brahmbhatt, CEO of Alpari Financial Services (India).



The 30-share benchmark Sensex rose 114.65 points, or 0.56 per cent, to 20,534.91. Overseas investors sold a net Rs 48.53 crore of shares yesterday, according to provisional stock exchange data.



"Going ahead, tomorrow's GDP and fiscal deficit data from India will be keenly watched by the markets," said Abhishek Goenka, CEO of India Forex Advisors.



Forward dollar premiums were mixed on alternate bouts of buying and selling transactions.



The benchmark six-month forward dollar premium payable in April declined to 225-227 paise from 227-229 paise previously while far-forward contracts maturing in October inched up to 467-469 paise from 466-468 paise.



The RBI fixed the reference rate for the dollar at 62.3896 and for the euro at 84.7547.



The rupee fell to 102.02 against the pound from 101.31 yesterday and moved down to 84.84 against the euro from 84.49 previously.



It advanced against the Japanese yen to 61.03 per 100 yen from the last close of 61.06.

Source:- financialexpress.com

No bar on Gold jewellery schemes seeking to lure buyers; PIL questioning such scheme dismissed

SEBI : Where scheme run by jewellery shop owners was not prohibited under any statutory provisions, public interest litigation for a direction to SEBI to take action against said scheme was to be dismissed

Interest on refund attributable to advance tax upheld as revenue failed to prove its relationship wi

IT: Where Assessing Officer allowed credit for MAT without payment of interest on quantum of tax refunded, in view of fact that what assessee was claiming was not interest on MAT paid for preceding assessment year but interest on refund to extent it was attributable to advance tax and TDS, assessee's claim for interest was to be allowed

No denial of input credit merely due to absence of assessee’s address in invoices

Cenvat Credit : Where there is no dispute that assessee had received input services and utilised them for providing output services, credit cannot be denied merely on ground that address of assessee was not mentioned on invoices on which credit was availed

Mere ad-hoc additions don’t justify concealment penalty, unless deliberate concealment found

IT: Where addition to assessee's income is made on estimate basis, penalty under section 271(1)(c) can not be imposed

Successor gets legitimate right to file winding up petition if respondent failed to pay debts of ama

CL : Where respondent company was unable to pay its debts and was taking frivolous objections, winding up petition against respondent was to be admitted

HC dismissed assessee’s writ for speedy disposal of appeal as he failed to pay of tax demand

IT : Where in appellate proceedings, assessee was directed to pay 50 per cent of tax due in instalments, on failure of assessee to pay said amount, its petition for speedy disposal of appeal could not be entertained

Commercial letting out without supplying services as found in hotel sector won’t be deemed as rentin

ST/UK VAT: Mere Commercial letting of residential property, without additional element of service supplied as found in hotel and allied sectors (such as housekeeping), cannot amount to renting of 'hotel, inn, etc.' and is not eligible for abatement/exemption available to renting of hotel, inn, etc.

Export commission paid outside India prior to withdrawal of circulars 786 and 23 wasn’t taxable in I

IT/ILT : Where export commission were paid outside India to Non-resident prior to applicability of Circular No. 7 of 2009, same was not chargeable to tax in India under section 9(1)(vii)

Same income can’t be taxed both in hands of AOP and its members on substantive and protective basis

IT: Where premium arising from sale of land was added on substantive basis to income of an AOP which consisted of nine persons including assessee, protective assessment of said amount again in hands of assessee in its individual capacity was not sustainable

Appellate Tribunal not to sit over matters which could fundamentally frustrate purpose of legislatio

CL: An action taken by bank under SARFAESI Act is subject to assail before DRT and a further appeal to DRAT; neither DRT nor appellate Tribunal can afford to sit over matters as that would fundamentally frustrate purpose of legislation

Revenue exempted from disclosing info obtained from Financial Intelligence Unit justifying search op

IT: Where search and seizure operation were carried out against assessee on receipt of information from national agency which was responsible for collecting information related to suspected financial transaction against money laundering, terrorist financing and related crimes, preparation of satisfaction note on such information would be treated as unpublished document for which privilege from disclosing source of information could be validly claimed

Hc Sets Aside Land Acquisition For Sez In Chittoor

In a judgement with far reaching implications, Justice SV Bhatt of AP High Court on Wednesday set aside the action of the revenue authorities of Chittoor District in resuming land from locals for the Special Economic Zone (SEZ) being promoted by Sri City Private Limited.



The judge allowed a writ petition filed by N Sakkubayamma and 29 others questioning the action of the state authorities in resuming their land without taking recourse to the provisions of the Land Acquisition Act.



Justice Bhatt, in his order, traced the background of the land owners who were assigned the land in question after they were displaced for establishing the rocket launching station at Sriharikota. With the state once again taking away their lands, Justice Bhatt was critical of how the authorities went about dispossessing the citizens of their property. "If the executive instructions or authority is to deprive property in this objectionable manner, I am afraid that any officer with his insignia and its authority will deprive property in a way not known to law. Such action negate rule of law," the judge said and set up a new calendar of dates for the authorities to follow under the Land Acquisition Act and said that the compensation payable should be determined expeditiously in accordance with the provisions of the Land Acquisition Act.

Source:- timesofindia.indiatimes.com

Drop In Captive Coal Output May Have Cost India Rs 1.46 Lakh Cr

The loss of production from captive coal mines allocated to companies has surely cost India dear. Delayed clearances for coal blocks, as well as companies’ own failure in developing mines, appear to have had a financial implication of Rs 1.46 lakh crore for the country.



The figure has been arrived at by adding the actual loss the country has incurred in partly making up for the production shortfall — by importing more expensive coal from other countries — and the opportunity loss due to non-generation of electricity because of coal crunch over the past five years.



According to consultancy firm KPMG, the total loss of output from captive coal mines over this period has been 394 million tonnes (mt) — based on delays with reference to a normative time of 54 months for developing allocated mines. Of this, 200 mt shortfall has been substituted with imported coal. Assuming the delivered cost of imported coal at Rs 3,980 a tonne and that of domestic coal for a port-based plant at Rs 2,380 a tonne, the additional cost on imported coal works out to Rs 1,600 a tonne — Rs 32,000 crore for 200 mt imported coal. (COST OF COAL INEFFICIENCY)



Since 194 mt of coal shortage could still not be made up for, the electricity-generation opportunity lost due to this — assuming 0.68 kg coal consumption for generating every unit (1 kWh) — would have been to the tune of 285.2 billion units. Further, considering the average cost of power at Rs 4 a unit, the total value of lost generation comes to Rs 1.14 lakh crore.



Putting the two figures together, the total loss due to captive mining shortfall, in value terms, come to a staggering Rs 1.46 lakh crore.



The emails Business Standard sent to the power and coal ministries for comments on the alarming loss figure did not elicit any response.



According to KPMG Partner Santosh Kamath, the loss figure for the power sector highlights the need for speedy clearances and permits. “The calculation shows the value of time is not adequately recognised or appreciated. This is a loss to the nation. Not all of the Rs 1,46,118-crore loss would be due to delays in clearances — there could be other factors, too — but clearance delays definitely are one of the major reasons,” he says.



The private power sector, on the other hand, does not seem to agree with the analysis. “The coal imports carried out to bridge the shortfall have to be seen only in the cases where projects are ready but mines are not. There are very few such instances,” says Ashok Khurana, director-general, Association of Power Producers.



Since 1993, when the coal mining sector was partially opened for captive production by private firms, the Centre has allocated 218 coal blocks, with reserves exceeding 49 billion tonnes. About half of the reserves have been allocated to the private sector, while state-run power generator NTPC has bagged a 10th of the reserves.



Under fire for alleged irregularities in allocation of coal blocks, the coal ministry has so far cancelled 51 block allocations, based on the recommendations of an inter-ministerial panel that found the companies concerned had not made enough efforts to develop the blocks given to them. Most companies have cited delays in environment and forest clearances and issues related to land acquisition, as well as resettlement and rehabilitation, for their failure in commissioning mines.

Source:- business-standard.com

Drop In Rubber Prices Augurs Well For Tyre Firms

Rubber prices fell as Indian tyre makers started importing rubber about three months ago, when local prices were firm while they softened overseas. Photo: Prashanth Vishwanathan/Bloomberg



Rubber prices (RSS-grade 4) have plunged by about 22% after having scaled a 52-week high of Rs.195 in early August. Prices fell as Indian tyre makers started importing rubber about three months ago, when local prices were firm while they softened overseas.



The main dampener is that the demand-supply indicators point to oversupply in the medium term, following the weak demand from tyre manufacturers because of slowing auto sales. Rubber consumption in the European Union countries, the US, Japan and South Korea has declined considerably, while consumption in China is slow of late. “Most of the fresh plantations in Thailand, Indonesia and Malaysia came up in 2005. Given the seven-year gestation period, rubber supply from these three regions, which account for bulk of the global production, is likely to improve,” said Surjit Arora, an analyst at Prabhudas Lilladher Pvt. Ltd.



Lower rubber prices augurs well for tyre makers, for whom rubber accounts for two-thirds of raw material costs.



Data analysis of seven listed tyre firms shows that as material cost to sales declined in the last eight quarters from 65.5% to 58.9%, operating margin improved from 8% to 12.2%. Even on a year-on-year basis, September-quarter operating margin improved by around two percentage points on average. Reasonably good sales of replacement tyres helped volumes.



Margins could improve further if the lower rubber price is followed by a turnaround in the auto sector. No wonder then, in anticipation of better days ahead, shares of key manufacturers are on a roll. Since August, Ceat Ltd soared 114%, JK Tyre and Industries Ltd jumped 47%, Apollo Tyres Ltd by 16% and MRF Ltd by around 34%.

A further rise in tyre stocks will depend on improved auto sales in the domestic market, which is languishing, and also on profitability, which hinges on the extent to which tyre makers pass on rubber price declines.

Source:- livemint.com

How Steel Can Become The Next Oil For India

This year's rise in the current account deficit, the associated impact on the economy and subsequent measures to control the deficit beg the question: apart from oil (and gold), are there other import categories that could derail us in the short-to medium term?



One can't help but think about steel as a possible candidate. On the face of it, this hypothesis is untenable. While both oil and steel are expected to witness continued demand growth, the comparison ends there. India is among the lowest-cost producers of steel and has the potential to emerge as a regional hub.



Sample this: India is home to the fifth-largest reserves of high-grade iron ore and has vast reserves of coking coal. Together, these minerals form the key inputs into steel-making, accounting for over 50% of the total cost of finished steel. With access to cheap labour and technically qualified engineers, and with over half a century of iron- and steel-making expertise in the nation, certainly India should be expected to have a vibrant, not to mention selfsufficient, steel industry.



Strong domestic demand is expected to underpin the growth of the industry in India. While the current demand growth is below the trend in recent history, given India's stage of economic development, we estimate India has the potential to consume about 250 MT of steel per annum by the middle of the next decade. However, will India be able to feed the demand through local production and build a thriving steel industry? The period between 2005 and 2008 witnessed a series of capacity announcements — over 50 million tonnes — which seemed to support the theory of India emerging as a steel hub and being self-sufficient in steel.



However, several large greenfield projects have not taken off and several others have been severely delayed. At around 96 million tonnes per annum (MTPA) of current capacity, India would have to triple its capacity by the middle of the next decade to meet the expected demand. About 60% of this additional capacity is expected to be greenfield projects that take longer to implement due to challenges related to land acquisition, clearances and financial closure. At eight to 10 years to commission a steel plant, India already takes twice as much time as China to put up these capacities. This will only go up due to the changed regulatory and business context.



In a business-as-usual scenario, India is likely to fall significantly short of the capacity required to feed its domestic demand. Assuming no dramatic fall in demand, we estimate a shortfall in capacity of 60-70 MTPA by 2025. We would have no choice but to import steel or curb the rapid development we aspire to achieve.



In an economy already strained by oil and other imports, such a magnitude of import would increase the current account deficit by about $20 billion, or anywhere between 25% and 30% of this year's expected deficit. Differently put, in such a scenario, steel imports would be second only to oil imports. If this were to happen, it would have far-reaching consequences well beyond the strain on our national finances.



Not only is a vibrant domestic steel industry important for a developing economy as it builds its infrastructure and manufacturing, it also has a significant multiplier effect in terms of jobs and economic growth.



It is estimated that for every unit increase in steel output, the economy has a multiplier effect of about five times. Up to eight million additional jobs will be created if India is able to meet its steel demand of 250 MT through domestic production.



Several large economies like the US and Germany to China and South Korea have developed a thriving steel industry during their developmental stages. India is at the crossroads of a similar opportunity and the stakes are high. The window of opportunity is limited before we are compelled to find a solution possibly less optimal.

Source:- economictimes.indiatimes.com

India Likely To Fast-Track Iran Port, Oil Plans

India is looking at ways to intensify engagement with Iran after the country's nuclear agreement with the P5+1 over the weekend.



A strategy session chaired by national security adviser Shivshankar Menon on Tuesday with senior officials from the ministries of finance, shipping and petroleum zeroed in on three sectors where India would try to do something extra for Iran.



An Iranian ship, Dinayat, has been stranded in Mundra port in Gujarat for the past year-and-a-half over some payments owed to a Singapore-based firm. The Iranian government has repeatedly urged India to release the ship but sources said there was a court order to seize the ship. In recent months, Iran has asked India to pay off the ship's debts from the huge amount of money kept in UCO Bank. India pays 45% of its oil payments to Iran in rupees.



However, so far, India has refused to pay, because the ship is actually owned by Iran's infamous Revolutionary Guards who come under UN sanctions. India was worried that making payments on behalf of the Revolutionary Guards may be tantamount to violating the sanctions. But now, the government is looking for ways to circumvent this restriction to see if an exception can be made for Iran.



India has declared its intention to develop Iran's Chahbahar port, which could become an important alternative to Pakistan's Karachi port. However, in the past year, since the Iranian government gave the final clearances, the delays have been on the Indian side. Finance minister P Chidambaram has added a killer clause to his permission on the port, by demanding a certain percentage return on investment from the port development project.



A naturally indolent Indian government has used this pre-condition as an excuse to delay work on the Chahbahar project. Sources said it had been difficult to get officials to put together a plan on the port. Equally, nobody at the senior levels, Menon or foreign minister Salman Khurshid, have been able to gather the courage to ask Chidambaram to modify his order since this is a strategic project.



In his meeting, Menon gave officials six months to firm up plans and get on the ground in Chahbahar. The MEA came in for some special beating, because the foreign office has been sceptical about the success of the US-Iran agreement. Menon reportedly told them to refrain from anticipating outcomes.



Other officials pointed to the difficulties in working with the Iranians, but Menon chided them for failing to exploit opportunities with Iran that could close once the US and the west returned to that country.



Third, India may source additional oil from Iran in the coming six months, or even explore joint ventures in the oil sector in Iran. Iran has slipped to third position behind Saudi Arabia and Iraq as India's oil supplier, dropping below the floor demanded by the US sanctions. Despite this, India has remained among the top two destinations for Iran's oil, even during the sanctions.



But now, India may try and make up the difference in a shorter period of time.

Source:- timesofindia.indiatimes.com

Rice Export To Iran May Be Casualties Of Nuclear Deal

India's near-monopoly in rice and soymeal exports to Iran could break following Tehran's nuclear deal with the West which is expected to pave the way for rival suppliers to boost their trading with the oil-rich country.



The landmark deal struck between the Islamic Republic and six world powers on Sunday eases some of the sanctions on trade with Iran that have slashed the OPEC member's oil exports by more than half and narrowed its options to secure food and agriculture goods to just a few countries.



The sanctions forced India to trim oil purchases from Iran, but it remained a loyal and large customer. In 2012 as sanctions stalled dollar payments, it started settling part of its oil debt in rupees and Iran was using those to buy goods from India.



That trade in rupees gave India an edge over other rice and soymeal suppliers such as Pakistan and Brazil who do not have such huge debts with Tehran and quickly the south Asian country established a near-monopoly in exports.



"Rice exports to Iran rose as India had an advantage over other suppliers in payment mechanism. As sanctions are easing, India has to become much more competitive to retain the share," R.S. Seshadri, director of Gurgaon-based rice exporter Tilda Riceland, told Reuters.



"Pakistan, Thailand lost share, but they can start grabbing that share again once financial institutions start trade with Iran in dollar terms," he said.



India's rice exports to Tehran, mainly of the basmati variety, surged 80 percent in the year ended March 31, 2013 from a year ago to 1.1 million tonnes. During the same period, shipments of soymeal jumped nearly four-fold to 886,776 tonnes.



Iran's difficulties in securing rice and soymeal from other producers due to the sanctions prompted Indian exporters to seek hefty premiums over global prices, sometimes as high as 20 percent. But that premium has to come down now.



"Dollar trade would end India's monopoly. We can't take Iran for granted. We need to rationalise our prices," said a rice exporter based in the northern state of Punjab, who did not want to be named.



Like India, Pakistan was a leading rice supplier to Iran as it had a freight advantage, but due to the Western sanctions its shipments dwindled last year.



But as restrictions are set to ease, "Pakistan can become a major player as it has a logistical advantage over India", Seshadri of Tilda Riceland said.



"Rupee payment helped India in increasing soymeal shipments. Iran is paying higher prices compared to other buyers," said Rajesh Agrawal, chief co-ordinator at the Soybean Processors' Association of India (SOPA), a trade body.



Now, Indian exporters "need to align prices in line with international prices", otherwise India will lose its share, Agarwal said.



But that could prove a difficult task for exporters. The competition among them due to the robust Iran demand has doubled prices across India of basmati rice and soybean in the past two years and now local farmers see little reason for discounts.



A lack of supplies domestically has halved soybean crushing and farmers are holding back in the hope that local prices will stay high, said a spokesman with India's largest soymeal exporter, Ruchi Soya Industries Limited (RCSY.NS).



"Right now our soybean prices are high, we are not competitive in the world market. Even at this price some farmers are not willing to sell," SOPA's Agrawal said.

Source:- in.reuters.com

Assessees to be vigilant if appeal was filed, they must not solely rely on CAs; says HC

ST : Plea that Chartered Accountant retained by assessee did not pursue appeal, does not absolve assessee or its officers from seeking information relating to appeal

Wockhardt's Second Plant Faces Import Alert From Us Food And Drug Administration

Drug company Wockhardt suffered a huge blow on Wednesday with the US Food and Drug Administration (FDA) banning products shipped from its key plant located at Chikalthana in Maharashtra. This is the second plant to face US regulatory action on account of poor manufacturing standards, and the impact on the company will be significant.



In May, its facility at Waluj came under the USFDA scanner, with the regulator issuing a warning letter as well as an import alert, banning drugs from the facility.



An ""import alert"" results in the detention without physical examination of drugs from firms that have not met so-called good manufacturing practices, according to the FDA website.The company is expected to face a sharp drop in market share and delays in new launch approvals, after its second plant was hit by the FDA's ""import alert"". Echoing the drag on the company, the Wockhardt scrip slipped by over 9% to close at Rs 426 on BSE.

Source:- timesofindia.indiatimes.com

India To Import 11 Mt Crude Oil From Iran This Fiscal

India would import 11 million tonnes of crude oil from Iran in the current fiscal, according to Petroleum Secretary, Vivek Rae.



“We were importing 21 mt of oil from Iran... If the sanctions get resolved, we can go back to 21 mt,’’ Rae told media persons on the sidelines of Energy Security Conference 2013 organised by CII in New Delhi.



Talking about the benefits to India after the recent agreement between world powers and Iran on the Islamic nation’s nuclear programme, Rae said: “Iran is a great source of oil and gas. Once the problem being faced by Iran is solved, there would be more oil and gas available in the market and there would be liquidity and prices tend to soften. As an importing country, this would certainly benefit us. We welcome any decision in the world that enhances the supply of oil and gas.’’



A delegation from India is going to Iran shortly to discuss several issues.



The Secretary further added that the sanctions will be worked out in the next six months and India will have to see how the policy regime changes. “And we will calibrate our decisions for next year based on that.’’



Rae also said that if the issues get resolved, India may not need the insurance fund. The country is trying to put in place an insurance fund to cover crude oil shipments from Iran.



“We are not giving it (insurance fund) a pause. The inter-ministerial consultations are going on. After the consultations are over, then we will take a call,’’ Rae said.



Currently, India is paying only 45 per cent of payments for crude oil in rupees. The payment mechanism is based on a MoU between India’s Finance Ministry and Iran.



“Right now, 45 per cent payment is made in rupee and 55 per cent is stuck. Because, we were hoping it to be in rupee, while Iranian Government is saying it should be in foreign exchange. We probably imported $5 billion worth of crude oil from Iran. Of this, we may have to pay $2-2.5 billion to the Iranian oil companies,’’ he said.

Source:- thehindubusinessline.com

Rupee Up 36 Paise To A Three Week High Vs Dollar

The rupee climbed 36 paise to a three-week high of 62.14 against the dollar on Wednesday after banks and exporters sold the US currency as it weakened overseas.

The rupee resumed higher at 62.45 per dollar from the previous close of 62.50 at the interbank foreign exchange market and firmed up further to end at 62.14, a gain of 36 paise or 0.57 per cent.

It was the highest close for the rupee since 61.62 on November 5. The local currency ended unchanged yesterday.

Bankers and exporters reduced their dollar positions due to the currency’s weakness overseas, a forex dealer said.

The dollar slipped against the euro on Wednesday, ahead of economic data before Thanksgiving Day. Releases scheduled include durable goods orders, the Chicago purchasing managers’ index and consumer sentiment numbers.

“Apart from strong euro and a slight weakness in the US dollar, the rupee was getting support from dollar selling by banks. Yesterday’s economic reports out from the US were quite mixed, with consumer confidence tumbling and the housing market showing a recovery,” said Abhishek Goenka, CEO of India Forex Advisors.

Local equities closed near Tuesday’s close but the rupee appreciated, taking cues from the dollar index, which traded weak for the fifth consecutive day ahead of Thursday’s Thanksgiving Day holiday, said Pramit Brahmbhatt, CEO of Alpari Financial Services (India). Later today, data on weekly US jobless claims is due, he said.

The benchmark Sensex ended at 20,420.26, down 4.76 points.

Source:- thehindu.com

Sec. 54F investment may sprout from borrowed sum; AO can’t insist on utilization of sales considerat

IT : There is no condition that assessee should utilize sale consideration only for purpose of acquisition of new property

RBI permits residents to borrow from NRs for further lending to infra sector and for investment in F

FEMA/ILT : FEM (Borrowing and Lending in Rupees) (Amendment) Regulations, 2013-Amendment in Regulation 6

Overseas commission not supported by any rendition of services held allowable as it actually represe

IT : Where assessee paid certain amount as agency commission and overseas commission and Assessing Officer had disallowed overseas commission on ground that no services had been rendered by overseas agents, since overseas commission represented a discount given to purchasers and not a business commission, impugned disallowance was not justified

No more depreciation on BSE cards after extinguishment of rights of members in lieu of BSEL shares

IT: Where assessee failed to produce any cash flow statement or any other material which could establish that borrowed funds had not been utilized for earning of exempt income, disallowance under section 14A was justified

Organizing study trips abroad tantamounts to 'Tour Operator Services'

ST/ECJ : Organisation of language and study trips abroad along with provision of services of travel and stay abroad services in consideration of composite payment amounts to 'tour and travel' services

Scope of Sections 271AAA and 271(1)(c) expired

IT : Where for assessment years 2007-08 and 2008-09 assessee filed returns of income on 5-7-2007 and 7-7-2008 respectively and later on 15-10-2008 authorised officer conducted a search under section 132 upon assessee and found undisclosed income, provisions of sub-section (1) of section 277AAA were not applicable to instant case and penalty, if any, was imposable under section 271(1)(c)

Banks to levy charges for sending SMS alerts on actual usage basis

BANKING : Charges Levied by Banks for Sending SMS Alerts

No disallowances for cash payment for food grains in agency business; an exception carved out in Rul

IT : No disallowance under section 40A(3), read with rule 6DD(e) and (k), was called for where cash purchases were made in commission agency business in food grains and assessee was maintaining all books of account and also accounts on all statutory forms required under U.P. Krishi Utpadan Mandi Adhiniyam, 1962

Residual income from a sham transaction held taxable as unexplained cash credits under sec. 68

IT : Where assessee in return of income under head 'income from other sources' had shown certain income as commodity income received from a party and it was not relatable to business of assessee and was a sham transaction, said income would fall under section 68, being unexplained cash receipts

A letter conveying rejection of centralized ST registration with reasons thereof is an appealable or

ST : If a letter conveys rejection of centralized registration and ground thereof, it can be treated as an order eligible for appellate remedies

No disallowances for case payment for food grains in agency business; an exception carved out in Rul

IT : No disallowance under section 40A(3), read with rule 6DD(e) and (k), was called for where cash purchases were made in commission agency business in food grains and assessee was maintaining all books of account and also accounts on all statutory forms required under U.P. Krishi Utpadan Mandi Adhiniyam, 1962

Sale of business in lieu of shares under an amalgamation scheme not a ‘slump sale’; in sync with Bha

IT : Where no monetary consideration was involved in transfer of manufacturing division with all its assets and liabilities under scheme of amalgamation approved by High Court, same could not be considered to be a slump sale within meaning ascribed under section 2(42C) so as to attract liability of capital gain under section 50B

No TP adjustment if price charged from AEs was found on a higher side

IT/ILT: Where rate charged by assessee for rendering catering services to AE running airlines business on per passenger basis was found to be highest, no adjustment could be made to arm's length price disclosed by assessee in respect of said transaction

Department couldn’t recover pending excise dues of owner from buyer of assets who bought it in an au

ST : Pending excise dues of owner of land/building/plant/machinery are not in relation to such properties (but are related only to manufactured goods) and cannot be demanded from buyer of said properties who purchased them in auction organised by State Finance Corporation

Wockhardt Sinks 14% On Fda Import Alert; Dr Reddy's Gains

Shares in Wockhardt Pharma fell as much 14 per cent on Wednesday after US drug regulator issued an import alert on the drug maker's Chikalthana facility. An import alert is issued when the Food and Drug Agency thinks a company's products present safety problems for US citizens.



The import alert is a big setback for Wockhardt because the company manufactures generic Toprol XL, its biggest product with sales of over $120 million at the Chikalthana facility. Toprol is a prescription medication for high blood pressure.



Ranjit Kapadia of Centrum Broking told NDTV that the issue will take at least six to nine months to resolve and Wockhardt will not be able to export any product from this facility leading to significant revenue loss.



As of 10.00 a.m., Wockhardt shares traded 7.7 per cent lower at Rs. 435.55 on the BSE as against 0.03 per cent gain in the broader Sensex. The stock had earlier hit a low of Rs. 406.



Wockhardt's loss is likely to be Dr Reddy's gain, which is the only other Indian drugmaker that has approval for Toprol. DRL can scale up and they migiht have an advantage, Mr Kapadia said.



DRL shares traded up 1.35 per cent at Rs. 2,444 on the NSE after muted start.

Source:- profit.ndtv.com

Indonesia Can Import Beef From India: Minister

Jakarta - Coordinating Minister for Economic Affairs Hatta Rajasa has said that Indonesia should not depend on one country but also on others such as India in importing beef to meet its domestic need.



"I think other countries like India have big potential. Malaysia is importing beef from India," the coordinating minister said on Tuesday.



Hatta said Indonesia could import beef from other countries as long as it revised Law No. 18/2009 on Animal Husbandry and Animal Health where import was done through a country-based system. Through the revision, the country-bases system could be changed into a zone-based one.



In the current law, it is stipulated that Indonesia can only import cattle from countries which are free from mouth and feet diseases like Australia and New Zealand.



"Thus, we cannot import cattle from India. India has a large area. If a certain part of the country has a cattle disease it does not mean all parts of India has the disease," the chief economic minister said.



He denied that the governments efforts to revise the law and seek other exporting countries were to be made because of current spying row with Australia.



"We have to revise it for our own interest, irrespective of the eavesdropping issue. We should not depend on one country but also on others," he said.



In connection with food policies, Agriculture Minister Suswono said that as an island country Indonesia should ideally adopt a zone-based system rather than a country-based in importing food commodities.



Now the government is revising the law on animal husbandry and health in an effort to prevent the country from violating the law if it adopts a zone-based system for importing food commodities.



"The country-based system will disadvantage us if at a time we cannot export cattle only because we have an island with a disease, while actually other islands we have are from such a disease," Hatta said.



So far,Indonesia has been importing cattle and beef from Australia. Based on the country-based system, Indonesia can import cattle from Australia and New Zealand.



Tensions between Indonesia and Australia increased after media reports that Australian intelligence agencies had wiretapped the private phones of Indonesian President Susilo Bambang Yudhoyono and other senior officials.



"It is better for the government to stop its livestock imports from Australia as part of its protest against Australias alleged wiretapping of phones of the Indonesian President and other senior state officials," Muhamad Azhari, a member of the House of Representatives (DPR)s Commission VI on trade affairs, said here on Friday.



Indonesias annual imports of beef and cattle from Australia amounted to about $12 billion. Since the trade began 20 years ago, more than 6.5 million cattle have been shipped to Indonesia for slaughter.



It was even reported that the Australian livestock export industry and the Australian Government have invested more than $4 million in improving animal welfare in Indonesia over the past 10 years.

Source:- antaranews.com

Ntpc Seeks 12 Million Tonnes Coal Imports Per Year

NEW DELHI: India's top power producer NTPC Ltd is looking to import 12 million tonnes of thermal coal a year on a long-term basis starting 2018, compared with 16 million tonnes currently, as it looks to reduce dependence on costly shipments.



NTPC's top supplier Coal India Ltd accounts for 80 percent of the country's coal output. But the state miner's inability to raise output in line with demand has meant India has become the No. 3 importer of the fuel despite sitting on what BP has estimated as the world's fifth-largest reserves.



NTPC is seeking an expression of interest from third parties for the import of coal for up to 15 years, a document on its website said on Monday. Indonesia, Australia, South Africa and the United States are the top coal exporters to India.



NTPC, whose installed capacity is 41.7 gigawatts, is building plants with capacity to produce 20 gigawatts of power. Some of the new plants will be completely fuelled by imported coal, the document showed.



India's coal imports jumped by about a third to a record 138 million tonnes last fiscal year, a cause for concern in Asia's third-largest economy as it looks to narrow its fiscal deficit.

Source:- articles.economictimes.indiatimes.com

Industrial Corridor From Amritsar To Sagar Port

KOLKATA: The industrial corridor from Amritsar that was originally planned up to Dankuni will now connect the Sagar port, shipping secretary Vidyapati Trivedi said in Kolkata on Monday. This industrial corridor is patterned on the Delhi-Mumbai Industrial Corridor (DMIC) and will use the Eastern Dedicated Freight Corridor (EDFC) as a backbone. The industrial corridor from Amritsar will also leverage the inland waterway system being developed along National Waterway-I that extends from Allahabad to Haldia.



"The Amritsar-Delhi-Kolkata (now Sagar) Industrial Corridor will cover the states of Punjab, Haryana, Uttar Pradesh, Uttarakhand, Bihar, Jharkhand and West Bengal. This is one of the most densely populated regions in the world where nearly 40% of India's population resides. This is also the region that needs a major push for industrialization and job creation. The Centre is expected to provide a support of Rs 5,749 crore over a period of 15 years for this corridor," an official said.



"There is no alternative to the ports of Kolkata and Haldia. After all, these ports handle cargo for the entire eastern and northeastern region of the country. The draught situation at Haldia is a problem though. That is why, projects like Haldia Dock-II and Sagar have been planned. The industrial corridor from Amritsar will also connect to Sagar," Trivedi said.



By mid-2014, the shipping ministry and Kolkata Port Trust will also finalize the agency that will build the deep-draughted port at Sagar, shipping minister G K Vasan said during the day. If this happens, the first phase of the port — the first deep-draughted one in West Bengal — is likely to become operational by the end of 2019, officials believe. This will solve a number of problems for the state and the Centre. While the port will boost much needed industrial growth in West Bengal, the Centre can also cut down on dredging subsidy that it needs to bear to maintain the Haldia Dock Complex (HDC). The annual dredging subsidy comes to around Rs 400 crore per annum.



"So far as the shipping ministry is concerned, we don't want any port to suffer. However, a decision has been taken to bring down the dredging subsidy. This will happen as more downstream projects develop. We hope to finalize the contract for the Sagar port latest by mid-2014. It will take a few more years for the facility to come up. So much expense for dredging will no longer be required after that," Vasan said.



"Between April and September this year, there has been a growth of 5.4% in the cargo handled by Kolkata Port Trust (KoPT). Capacity utilization of berths at the two ports of Kolkata and Haldia is about 62.5%. What is most encouraging is the Rs 12,000 crore investment commitment that has come in for this port facility," the shipping minister said. Of this Rs 12,000 crore, Rs 7,851 crore will be the cost for the port at Sagar where 55 million tonnes of cargo will be handled by 2019-20.

Source:- timesofindia.indiatimes.com

India May Spurn Eu Demand For Duty Cut On Auto, Parts .

NEW DELHI: India may reject demands by the European Union that the government slash import tariffs on industrial goods such as automobiles and auto components, making it unlikely that the two sides will finalise their long-awaited free trade agreement (FTA) anytime soon.



The trade and economic relations committee, or TERC, chaired by Prime Minister Manmohan Singh has decided that no new concessions should be offered under the proposed trade deal, something domestic manufacturers have been lobbying for.



New Delhi's tough stance spells more trouble for the much-delayed trade deal and dashes expectations that European automobiles, and wines and spirits would become cheaper for Indian consumers under such an accord.



The EU had sought concessions in 56 non-agriculture market access tariff lines, said an official aware of the stand of the TERC, the highest decision-making body on trade deals. "The TERC has decided that it would be difficult to accommodate most of these in view of the implications this has for our domestic manufacturing industry," the official said.



The 27-nation bloc wants duty on the auto sector to decline eventually to zero from the current 60-100%. However, India has resisted this due to the impact such a steep tariff reduction will have on local manufacturers.



The TERC also decided that "a final effort may be made by the department of commerce to push for a settlement of all issues based on existing offers and demands," the official said.



The panel also mandated secretaries at the ministries of finance, commerce, industrial policy and promotion and external affairs to examine the advantages and disadvantages of an FTA with the EU, the official said. This panel, along with the Planning Commission and the chairman of the Prime minister's Economic Advisory Council, will prepare an agenda for action by the government to boost India's global competitiveness.



India and the EU have been negotiating the broad-based investment and trade agreement (BITA) since 2007 and have held 15 rounds of negotiations in the last six years. The ministerial-level talks scheduled in June did not take place.



The EU has already made it clear that there can be no deal without India slashing tariffs on cars and allowing a higher foreign direct investment limit in insurance. The United Progressive Alliance is committed to raising the FDI limit in insurance to 49% from 26% but the move needs parliamentary approval.



The panel has, meanwhile, directed the department of commerce to take a "calibrated approach to FTAs", said the official cited above, suggesting that the government wants to ensure that such accords don't hurt local industry.



European Commission vice-president Joaquin Almunia had blamed India for the delay in finalising the trade pact during his visit to New Delhi last week. He had said that the ball was now in India's court. Commerce and industry minister Anand Sharma had demanded data secure status for India in his meeting with Almunia, something the EU is reluctant to give. This relates to information about customers and other entities remaining safe from theft.



The EU, for its part, wants restrictions on the movement of professionals based on sectors, which could adversely impact India's IT sector.



India has signed FTAs with about 20 countries including Japan, South Korea, the Association of South-east Asian Nations ( Asean), Sri Lanka and Nepal. It's negotiating market opening pacts with Australia, Canada and New Zealand, apart from the European Union.



Source:- economictimes.indiatimes.com

Looking At Increasing Raw Wool Imports To India: Woolmark Co

NEW DELHI: Australia-based leading wool textile firm The Woolmark Company today said it is looking at an increase in raw wool imports mainly of Merino wool from the country to India.



"We are expecting an increase in percentage of raw wool being imported to India in the 2013-14 season," The Woolmark Company Country Manager for India, Hong Kong and Taiwan Alex Lai told reporters here at an event.



The majority of this will be Merino wool which is of a very high quality, he added.



Australia is the world's second largest producer of greasy wool, producing about 345 million kilogrammes (Mkg) of wool and accounting for about one fifth of global wool production.



In 2012, 20 per cent of India's raw wool imports were from Australia. In the 2012-13 season, the raw wool import volume from Australia was at 20.9 Mkg (at least 88 per cent of this was Merino wool).



However in the 2013-14 season, raw wool imports from Australia so far have been 6.1 Mkg (at least 89 per cent is Merino wool).



Monte Carlo Fashions and Raymond Ltd, major importers of the raw wool supplied by the Woolmark Company in India, said they were working on introducing 'Cool Wool' in India, which can be worn in Indian spring and summer seasons, shedding the popular perception that wool is a seasonal fabric for winter.



"The perception of wool only being for winter is a myth. We will be promoting Cool Wool in India in spring-summer 2014," Raymond LtdBSE -0.54 % Director-Marketing Mrinmoy Mukherjee said.



Cool Wool is a range of fine, lightweight Merino wool fabrics and garments ideal for hotter climates and the spring summer season.



The Woolmark brand is owned by Australian Wool Innovation (AWI), a not-for-profit company owned by over 25,000 wool growers.

Source:- economictimes.indiatimes.com

Tax Evaders Can Be Traced, Warns Chidambaram

Cautioning tax evaders, Finance Minister P. Chidambaram on Tuesday said the central government was in a position to trace defaulters by constructing their full profile and possessed dossiers on them.



No tax evader could escape the government, he asserted.



"All financial transactions can be traced once you are identified as a tax evader. We can construct a 360 degree profile them," Chidambaram said at a programme.



Delivering the inaugural speech at an interaction with representatives of trade and industry on the Service Tax Voluntary Compliance Enforcement Scheme (VCES), the minister said: "In fact we have such profiles. We have dossiers on them."



He asserted that the government had the option to arrest and prosecute habitual offenders. Already, 13 such peoples have been taken into custody from various parts of the country.



Calling upon traders to utilise the VCES, the minister said it would enable them to come clean.



He mentioned several sectors - construction, couriers, telecom and security services - for failing to deposit with the government the service tax they collected.



He said the service sector comprised 55 percent of the country's Gross Domestic Product, while "a healthy number - 17 lakh - had registered for service tax.



"But of them, only seven lakh pay service tax, and the rest have forgotten. While some are no-filers, some others are stop-filers."



The VCES, in force since May 10, would continue upto Dec 31.

Source:- businesstoday.intoday.in

Indian Rupee Rises To 62.45 Per Dollar In Early Trade

Indian rupee kicked-off trade at 62.45 per dollar on Wednesday, up 5 paise compared to previous close of 62.50 per dollar.



Pramit Brahmbhatt of Alpari India feels the rupee will be rangebound today with a slight negative bias owing to a weak equity market and strong month-end dollar demand by oil marketing companies and other importers. However a strong euro and a weak dollar coupled with RBI's intervention in the market might aid rupee, he adds.



According to Brahmbhatt, the range for the day is seen between 62.1-63.10/USD.

Source:- moneycontrol.com

SAT upheld repayment of sum collected by appellant as it carried on Collective Investment Scheme wit

CL: Where appellant-company collected huge amount of money from investors for development of land by promising high returns either in form of profits or increased value of land, in view of fact that business carried on by appellant was in nature of Collective Investment Scheme which was undertaken without obtaining certificate of registration from SEBI, impugned order passed in terms of section 11AA, read with section 12 directing winding up of said scheme was to be confirmed

Limit for mandatory e-payment under ST reduced to Rs. 1 lakh from Rs. 10 lakhs

ST : Rule 6 of The Service Tax Rules, 1994 - Payment - Service Tax - Limit for Mandatory E-Payment Reduced from Rs. 10 Lakhs to Rs. 1 Lakhs

Definition of expression ‘Infrastructure Lending’ broadened; RBI notifies new Sub-sectors for the pu

BANKING : Financing of Infrastructure - Definition of 'Infrastructure Lending'

A manufacturer can’t be made liable to ST under Scientific or Consultancy Services

ST : A manufacturer of textiles is not 'a science or technology institution or organisation' and cannot fall under Scientific or Technical Consultancy Services

Sec. 40A(2) provisions can be invoked for an expenditure and not for sale to sister concern at a les

IT : Where assessee had charged less sale price from sister concern as compared to non-sister concerns, provisions of section 40A could not be invoked as no payment had been made for any item of expenditure

Speculative losses from share transactions could be set-off against profits from loans and advances

IT : Losses from sale and purchase of shares can be set off against profits of business of company from loans and advances

Only profits embedded in purchases made from grey market are taxable in hands of assessee

IT : Where though purchase of raw material was not made from party from whom assessee claimed but such material was purchased from open market incurring cash payment, only profit element of such purchases and not entire purchases was to be added to income of assessee

Interest on late payment of taxes to be paid suo-motu; no time limit to issue show cause notice for

Excise & Custom : Interest being appendix to principal amount is required to be paid suo motu by an assessee; therefore, there is no time-limit prescribed under law for issuance of show-cause notice for recovery of interest amount

Re-assessment of parents to club minor’s income not justified if assessment of minor already conclud

IT: Reopening of assessment on ground that income shown in return of assessee's minor children was that of assessee was bad in law, when assessment in case of minor children had been completed before issue of notice under section 148

Complaint alleging mere oppression without any infringement of shareholder’s right liable to be reje

CL: Where petition filed under section 397 made only directorial complaint and did not allege any act of oppression and mismanagement which infringe petitioner's right as shareholder, same would be liable to be rejected under Order 7, rule 11(a) of CPC

Assistance in financial and risk management decision is a ‘technical service’; FTS under India-US DT

IT/ILT : Where assessee-company was making use of advice, input experience, experimentation and assistance rendered by USA based company in its decision making process of financial and risk management, etc., services so rendered being technical in nature as mentioned in clause 4(b) of article 12 of India-US DTAA, assessee was liable to deduct tax at source while making payments for said services

Charge sheet against an IRS for dishonest deeds not maintainable if it hasn’t been approved by Finan

Service Matter: Where Additional Commissioner of Income-tax was served with a charge sheet alleging that he failed to maintain integrity and exhibited a conduct which was unbecoming of a Government servant, charge sheet having not been approved by disciplinary authority, i.e., Finance Minister, was non est in eye of law

Exports May Get Priority Lending Status Shortly, Says Fieo Chief

Exports sector may soon get the priority sector lending status from the lenders as the discussions at the finance ministry and Reserve Bank of India (RBI) on the issue are now at an advanced stage, says top official.



Disclosing this to ET, the president of Federation of Indian Export Organizations (FIEO) M. Rafeeque Ahmed said the Federation was requesting the government to fix at least 5% in the current priority sector cap of 40% for exports.



"The idea is to ensure credit flows to the exports sector. Banks will be compelled to lend to exporters with priority sector lending status. I hope the lenders will give priority sector status to exports and I am sure something will come up in the next couple of months," said Rafeeque.



He said a high-level delegation of exporters led by FIEO was planning to meet the RBI Governor this month-end to discuss the issue. Rafeeque was in Hyderabad on Monday visiting the Andhra Pradesh Trade Promotion Corporation (APTPC), where the Corporation's managing director Sadhu Sundar made a presentation on the export performance of Andhra Pradesh. The APTPC MD said the state expects to report a growth of 16% this fiscal over last year's exports of Rs 1.33 lakh crore.



Rafeeque said the Indian merchandise exports during the second half were expected to see a growth of 12-15%. "The government of India has fixed a target of $325 billion exports for this year. We are sure that this year we will be able to make that number and even exceed it. We see it between $330-350 billion."



The FIEO president said all the items in the export basket were doing well now. In the beginning of the year, gems and jewellery, oil, electronics and engineering goods suffered slowdown but they picked up momentum subsequently. Textiles, pharmaceuticals and leather were doing very good among the better performing sectors.



"The US economy has stabilized and the confidence level is very good. That is what is giving us a biggest growth. And also lately, the European Union has also stabilized. While emerging markets such as Latin America and others are also providing big opportunities, the only worrying thing for us now is China that is not picking up well. Our imports from China are much higher than our exports," said Rafeeque Ahmed.



The FIEO president said the dollar to rupee at 60-62 would help Indian exporters to compete better in the market. The Federation expects the dollar to rupee will hover at around 62-64 over the next 3-4 months.

Source:- economictimes.indiatimes.com

Belgium Raises Issue Of 2 Percent Duty On Diamond Imports By India

Belgium today raised the issue of imposition of 2 per cent duty on imports of polished and cut diamonds by India during a meeting with Commerce Minister Anand Sharma.



Diamonds account for a large part of trade between India and Belgium.



The diamond duty issue was discussed at the meeting of Sharma with Princess Astrid of Belgium and its Deputy Prime Minister Didier Reynders here.



According to an official, Sharma conveyed to the visiting side that the measure was necessitated due to economic reasons and the tax is applicable for imports from all the countries - not targeted specifically at diamond imports from Belgium.



"The Belgian side discussed the consequences of the recent special import tax of 2 per cent re-instituted by India on exports of polished and cut diamonds," the official said.



Of the world's polished diamond market, India's share is 60 per cent in terms of value, 85 per cent in terms of volume and 92 per cent in terms of pieces.



Eleven out of every 12 cut and polished diamond set in jewellery worldwide are processed in India. The cutting and polishing of diamond employs a million people in the country.



Antwerp in Belgium on the other hand is the key destination for rough diamonds.



More than 80 per cent of the world's rough diamond volume is traded through Antwerp. About 40 per cent of the world's natural industrial diamonds pass through the city.



Sharma also conveyed satisfaction over the signing of MoU between the two sides for exchange of information/data sharing on Kimberley Process.



KP is a joint initiative by governments, industry and the civil society to stem the flow of conflict diamonds - rough diamonds used by rebel movements to finance wars against legitimate governments.



Source:- economictimes.indiatimes.com

Hc Stays Govt Order Banning Potato Export

The Calcutta High Court Monday stayed a notification issued by the West Bengal government, which banned inter-state trading of potato. Delivering the order Justice Sanjib Banerjee also directed the state to file its reply within next three days. The case will come up for resumed hearing on December 3.



The state government notification dated October 23 stated that no West Bengal trader would be allowed to export potato to other states. The traders were told to take permission from the government at least seven days before exporting potato to other states.



The petition moved by Madhusudhan Sen, a potato merchant, alleged that the notification was illegal and unconstitutional as the President's assent was required to issue such order.



For the petitioner, Advocate Arunav Ghosh pleaded that the notification was interference into the right to the free trade of the traders. He said the notification violated the article 301 of the Indian Constitution.



For the state, Advocate General Bimal Chatterjee argued that the state government imposed the restriction under Article 304 of the Indian Constitution. Justice Banerjee, however, pointed out that based on the Article 304 no such restriction can be introduced by a state government without the previous sanction of the President.



The court said that prima-facie the notification was unconstitutional, Ghosh later told the reporters.

Source:- indianexpress.com

No reassessment on mere allegation of bogus entries as AO failed to identify culprits for such entri

IT : Where assessment was reopened on ground that assessee was involved in bogus entries but reasons recorded for reopening did not mention who had given bogus entries, reopening of assessment could not be sustained

Iran Deal To Help India's Oil Imports; Boost Bilateral Trade

The country's corporates today said the deal between Iran and six world powers, including the US, will help in sourcing of oil imports from the Persian Gulf state and boost trade with India.



"India has maintained strong historic links with Iran and any step that makes it easy for Iran to engage economically with the rest of the world would help us in sourcing of oil imports from Iran," Ficci President Naina Lal Kidwai said.



"We will see possibilities for exporting our manufactured goods to Iran including pharma, IT, electronics, automobile spare parts and food processing. This relief will benefit Indian companies in promoting bilateral trade between India and Iran which at present is around USD 15 billion," she said.



Capping four days of negotiations, representatives the US, the UK, Russia, China, France and Germany (P5+1 group of nations) reached an agreement with Iran in Geneva yesterday.



Under the deal, Iran agreed to give better access to inspectors and halt some of its work on uranium enrichment. But Iranian negotiators insisted they still had a right to nuclear power.



In return, there will be no new nuclear-related sanctions on Iran for six months.



"The deal would not only reduce India's import bill as energy prices ease, but also make a big difference to inflation, which has remained bane of the Indian economy for the last six years, more so at the retail level," Assocham President Rana Kapoor said.



Iran will also stop enriching uranium beyond 5 per cent, the level at which it can be used for weapons research, and reduce its stockpile of uranium enriched beyond this point.



Iran will also receive sanctions relief worth about USD 7 billion on sectors including precious metals.



"The deal will go a long way in augmenting India's trade with the Persian country. Exporters were fighting shy of dealing with the Iranian buyers even in regard to the items beyond sanctions, largely because there was so much uncertainty over the payment transfer in the backdrop of sanctions," EEPC India Chairman Anupam Shah said.



India can export a large number of items to Iran , if unhindered access is provided in that market, including high-tech machinery, automobiles, components besides the agri products, Shah said.



The agreement -- described as an "initial, six-month" deal -- includes "substantial limitations that will help prevent Iran from creating a nuclear weapon," US President Barack Obama said in a nationally televised address.



India is likely to resume paying Iran in Euros after a historic accord between western super powers and the Persian Gulf state made it easier to import crude oil from one of its biggest suppliers.



India's total exports to Iran were merely USD 3.7 billion in 2012-13, much less than potential, under the impact of sanctions.

Source:- economictimes.indiatimes.com