Profit from share transactions taxable as ‘Capital Gains’ if shares are in form of investment

IT : Where assessee earned gain on purchase and sale of equity shares and mutual funds and its intention was to purchase shares and mutual funds for holding them as investment, gain in question was assessable under head 'short-term capital gain'

Exp. allowed in preceding years to be allowed in current year too if facts are similar, rules HC

IT : Where in preceding year disallowances were deleted, same could be followed in current year, facts being same

Renting services are eligible for input service credit if used further for sub-letting

ST : In case of sub-letting, service tax paid on rent paid to landlord is available as input service credit subject to maintenance of documentary evidence in that regard

Report of DG is only recommendatory in nature and it’s not binding on the CCI

Competition Act : Report of DG is only recommendatory in nature and is not binding on CCI and, therefore, it is not that in every case where CCI disagrees with report of DG, it has to order further investigation

Genuine transaction can’t be alleged as a colorable device merely because it reduces the burden of t

IT : Once a transaction is genuine and traded at proper valuation, even if entered with a motive to avoid tax, would not become coloruable device subject to any disqualification

[Indian Custom Circular] : Regarding Introduction of Risk Management Systems (RMS) in Exports

Circular No. 23/2013 - Customs

F.No.450/28/2011-Cus.IV

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise

***

New Delhi, Dated 24th June, 2013

To

All Chief Commissioners of Customs/Customs (Prev)

All Chief Commissisoner of Customs and Central Excise

All Commissioners of Customs/Customs (Prev)

All Commissioners of Customs and Central Excise

All Director Generals under CBEC

Sir/Madam

Sub: Introduction of Risk Management Systems (RMS) in Exports – regarding.

Attention is invited to the Board Circular No.43/2005-Cus dated 24.11.2005 whereby Risk Management System (RMS) was introduced in Imports as a trade facilitation measure and for selective interdiction of high risk consignments for Customs control.

2. Implementation of RMS in Imports has been one of the most significant steps in the ongoing Business Process Re-engineering initiative of the department. In continuation of this initiative, the Board has now decided to introduce RMS in exports in Customs locations where the Indian Customs EDI Systems (ICES) is operational. The RMS in exports will enable low risk consignments to be cleared based on self assessment of the declarations by exporters. This will enable the department to enhance the level of facilitation and speed up the process of cargo clearance. By expediting the clearance of compliant export cargo, the RMS for exports will contribute to reduction in dwell time, thereby achieving the desired objective of reducing the transaction cost in order to make the business internationally competitive. The RMS in Exports is scheduled for implementation from 15.07.2013 onwards.

3. The RMS for exports is developed with the following components (i) ensuring appropriate control measures for proper and speedy disbursement of drawback and other export incentives (ii) effective utilization of human resources, to match the workload with the resources available (iii) ensuring proper and expeditious implementation of existing control over export under the applicable Allied Acts and Rules.

4 With the introduction of the RMS in exports, the present practice of routine verification of self-assessment and examination of Shipping Bills will be discontinued

and the focus will be on quality assessment, examination and post clearance audit (PCA) of Shipping Bills selected by the Risk Management System.

5. Shipping Bills filed electronically into ICES through the Service Centre or the ICEGATE will be processed by RMS. The RMS will process the data through a series of steps/corridors and produce an electronic output for the ICES. This output from RMS will determine the flow of the Shipping Bill in ICES i.e. whether the Shipping Bill will be taken up for Customs control (verification of self-assessment or examination or both) or to be given “Let Export Order” directly after payment of Export duty (if any) without any verification of self-assessment or examination. The RMS will also provide instructions for Appraising Officer/Superintendent, Examining Officer/Inspector or the Let Export Order (LEO) Officer, wherever necessary. The decisions communicated by the RMS on the need for verification of self-assessment and/or examination and the appraising and examination instructions communicated by the RMS have be followed by the field formations. It is possible that in a few cases, the field formations might decide to apply a particular treatment to the Shipping Bill which is at variance with the instructions received for the RMS owing to risks which are not factored in the RMS. Such a course of action shall however be taken only with the prior approval of the jurisdictional Commissioner of Customs or an officer authorised by him for this purpose, who shall not be below the rank of Addl./Joint Commissioner of Customs, and after recording the reason for the same. A brief remark on the reasons and particulars of Commissioner’s authorization should be made by the officer examining the goods in the departmental comments in the EDI system.

6. Board has decided to implement RMS in export in two phases. In the first phase the RMS will process the data and provide the output to ICES only up to goods examination stage. In the second phase, the RMS will also process the Shipping Bill data after the Export general Manifest (EGM) is filed electronically and provide output to ICES for selection of shipping Bills for Drawback scrutiny and Post Clearance Audit (PCA).

7. With the implementation of export RMS, a Post Clearance Audit (PCA) function will be introduced in respect of exports after the LEO is given for export consignment. The objective of PCA is to monitor, maintain and enhance compliance levels, while reducing the dwell time of cargo. The RMS will select the Shipping Bills for audit, after issue of LEO, and these selected Shipping Bills will be directed to the audit officers for scrutiny by the ICES. It may be noted that the auditors are specifically being instructed to scrutinize declarations with reference to exports incentives, duty drawback and other compliance requirements Wherever necessary, RMS will provide instructions for audit Officers. In case any possible short levies or undue claim of export incentives are noticed, the officer will issue a Consultative Letter setting out the ground for their views to the exporters/CHAs. Audit Officers should also scrutinize declarations with reference to data quality and advise the exporters/ CHAs suitably where the quality of their declarations is found deficient. Such advise is expected to be followed and will be monitored by the Local Risk Managers (LRM).

8 As in the case of Import, the national management of the Risk Management systems shall be the responsibility of the Risk Management Division. There will be a single Local Risk Manager (Admin) for a location for both import and export.

9. The implementation of RMS for exports will necessitate reorganization for staff. Board desires the Chief Commissisoner of Customs to undertake a comprehensive re-organization of the officers deployed for processing of Shipping Bills. The present appraising facilities should be right-sized in tune with the quantum of Shipping Bills coming for assessment. A separate PCA section needs to be created and sufficient staff should be diverted to the Post Clearance Audit. The strength of the staff for examination of cargo would also be required to be readjusted.

10. With the introduction of RMS in exports, the selection of Shipping Bills for verification of Self-assessment and/or examination will be based on the output given by RMS to ICES. Accordingly the examination and assessment norms contained in the Board’s Circulars No. 06/2002 –Cus dated 23.01.2002, 01/2009-Cus dated 13.01.2009 and 28/2012-Customs dated 16.11.2012 would stand modified to that extent. However, owing to some technical reasons if the RMS fails to provide output to ICES or RMS output is not received at ICES end in time, the existing norms of assessment and examination prescribed by the aforementioned circulars will be applicable.

11. To begain with, RMS in Exports will be introduced w.e.f. 15.7.2013 at ICD Mulund and ICD Patparganj. With the implementation of RMS in exports the existing facilitation scheme viz. Accelerated Clearance System vide Circular No.30/2003-Cus dated 4.4.2003. would be phased out. As the deployment of the export RMS is likely to take place in a phased manner across the ICES locations, the existing facilitation scheme will continue to be operative in each Customs station until the operationalisation of the export RMS at the station.

12. Board desires DG (Systems) to forward the detailed instruction/draft public notice to field formation separately.

13. Any difficulty in implementation of these instructions should be brought notice of the Board immediately.

Yours faithfully,

( R.P. Singh )

Director (Customs)

24X7 Customs Clearance Facility For Export Cargo

25-Jun-2013

NEW DELHI, 25 JUNE: Beginning 1 July, Customs clearance of all export goods will take place on a 24x7 basis from four major air cargo complexes/airports in Bangalore, Chennai, Delhi and Mumbai, the Union finance ministry announced today.



Thus, all exports including those made under export incentives scheme as well as duty drawback scheme will now be able to be move out of the country on a 24x7 basis. The government expects this initiative to greatly facilitate the exporting community and boost the country’s exports by reducing dwell time and enabling exporters to meet their deadlines, a statement from the ministry said. The expansion of the 24x7 facility at the four major air cargo complexes/airports follows on the heels of similar customs clearance facility for exports made under free shipping bills, i.e. without claiming export incentives with effect from 1 June 2013 from all 13 EDI connected air cargo complexes/airports in the country.



These 13 air cargo complexes/airports are Ahmedabad, Amritsar, Cochin, Calicut, Coimbatore, Goa, Hyderabad, Indore, Jaipur, Kolkata, Nashik, Vizag and Thiruvananthapuram.



The extension of clearance facility for imports and exports has been under the consideration of the government for some time. Last year from 1 September 2012, the Customs began functioning on a 24x7 basis to clear select export consignments under free shipping bills as well as identified import consignments which were facilitated by its electronic risk assessment system.

Source:-www.thestatesman.net

Rupee Near Record Low; Dealers Watch For Rbi

The rupee was weaker in early trade on Wednesday, with dealers watching for central bank intervention as the currency closes in on its record low.



At 9:02 a.m., the rupee was at 59.78/79 to a dollar versus Tuesday's close of 59.66/67. It had hit a record low of 59.9850 last week.

Source:-in.reuters.com

Uncompetitive Imports Call For Relook At India's China Trade Policy

KOLKATA: Is India enriching China and allowing it to occupy our land?



A study shows India pays more for goods from China that it could buy from elsewhere at a lower price since the era of cheap Chinese goods appears to be coming to an end. The land of dragons has struggled to keep its cost competitiveness going because of rising wages, land prices and taxes. The ascent of the renminbi or yuan has also made the world's largest manufacturer more expensive. The Sino-Indian bilateral trade took off during the last decade to nearly $70 billion (about 4.2 lakh crore) at the end of 2012 and is expected to touch $100 billion (about 6 lakh crore) in 2015. It certainly looks impressive, but the magnitude of uncompetitive imports calls for a relook at the bilateral trade policy, argues Prof SK Mohanty, who did a study on Sino-India trade relationship on behalf of the Reserve Bank of India.



The volume of uncompetitive imports from China rose from $4.49 billion in 2007 to $7.15 billion in 2008, but declined to $6.6 billion in 2009. The relative size of this to total imports was very high, ranging from 18.6% in 2007 to 25.4% in 2008. In fact, nearly one-third of 3,876 items imported by India in 2009 proved costlier.



"It is a matter of concern as the share of uncompetitive products in total is increasing over a period of time. They are both in terms of the number of products imported and also in value terms," says Prof Mohanty of Research and Information System for Developing Countries in the study titled 'India China Bilateral Trade Relationship'.

Uncompetitive imports call for relook at India's China trade policy

Uncompetitive imports are concentrated in four sectors -- chemicals, textiles, base metals and machinery with about 75-80% share of total uncompetitive imports during 2007-09. Imports of minerals, plastics, gems & jewelleries, and automobile parts from China have also turned out to be uncompetitive. The combined share of these eight sectors exceeded 93% of total uncompetitive imports during 2007-09.



Many believe the rising labour cost in China is to be blamed primarily. In fact, China is gradually withdrawing from the lower end of the textile sector, and if the trend continues, the production base of textiles and clothing will slowly shift to other countries, as has been the case with the textile industries of a number of East Asian countries in the past.



This could prove a blessing for India which has a large textile sector. Prof Mohanty suggests India should start preparing itself by getting into partnership with foreign firms to establish production centres on its shore for mass production of garments. "The Chinese phase-out from the garment industry may be an opportunity for India to replace it in the global market in a phased manner."



The automobile industry both in India and China has expanded rapidly during the last two decades and India enjoys a competitive edge in auto components, small-cars and two-wheeler segments. However, the study showed that India's imports from China in these product segments are turning out to be uncompetitive, and imports of these products can be managed efficiently from other competitive suppliers. India is also emerging as competitive player in the niche area of auto designing, which is related to the IT sector.

Source:-economictimes.indiatimes.com

RPM was most appropriate if items bought from AE were sold to unrelated parties

IT/ILT : Where assessee buys products from its AEs and sells to unrelated parties without any further processing, RPM is most appropriate method to determine ALP

Coconut Exports Up 26% This Year

25-Jun-2013

Export of coconut and coconut products (other than coir and coir products) reached a record Rs 1,050 crore in 2012-13. Total export registered a grew 26 per cent in value and 32 per cent in volume, compared with the previous financial year, according to the Coconut Development Board (CDB).



The country exported 58,000 tonnes of activated carbon worth Rs 550 crore, constituting 50 per cent of the total export earnings. Good quality shell-based activated carbon has great demand in North America, South America, Eastern Europe, Southeast Asia and West Asia.



In view of the economic revival and trade increase, India is doing much more trade with American countries in addition to the traditional markets. Coconut shell-based activated carbon is notified under the focus product scheme of the Union government and becomes eligible for a two per cent export incentive from January 1, 2013. Ever since the government had notified the CDB as an Export Promotion Council for all coconut products from April 1, 2009, exports saw an average annual growth of 35 per cent.



The board currently has around 1,000 registered exporters. It aims to achieve Rs 5,000 crore worth coconut product exports by the end of the 12th five-year Plan.

Source:-www.business-standard.com

Chandy Gets Clean Chit In Palm Oil Import Case

25-Jun-2013

KOCHI: The Kerala high court Tuesday gave a clean chit to chief minister Oommen Chandy in the palm oil import case, dismissing a petition filed by CPM veteran VS Achuthanandan and former bureaucrat and legislator KJ Alphonse.





The two petitioners had approached the high court to set aside the verdict of the Thrissur vigilance court in May last year that accepted a report giving a clean chit to Chandy by a vigilance probe team.



The vigilance probe team had concluded that Chandy had no role in the import of palm oil.



Alphonse was an independent legislator supported by the Left during 2006-11.



The import of 15,000 tonnes of palm oil was undertaken in 1992.



The case was registered in 1999 when the CPM, led by EK Nayanar, was in power. The vigilance department had earlier submitted a report that there was nothing in the case that could indict Chandy.



Former chief minister K Karunakaran, then food minister TH Mustafa and bureaucrats PJ Thomas and Jiji Thompson were charged with causing a loss of Rs.2.32 crore to the exchequer by importing palm oil from Malaysia at an enhanced price.

Source:-timesofindia.indiatimes.com

Export incentives from vendor for goods purchased for export can't be deducted from cost of goods so

IT/ILT: Where assessee entered into international transactions of export of finished goods to its AE and it had purchased finished goods from one 'G' for export to AE, export incentive received in respect of such purchases from 'G' was not deductible from cost of goods sold to AE, whereas assessee would be entitled for deduction of rebate received from 'G' from cost of goods sold to AE

Royalty paid to parent Co. on AE sales couldn’t be disallowed if similar payment on non-AE sales acc

IT/ILT : Where TPO accepts arm's length nature of royalty paid to AE(foreign parent company) on third party sales as a % of sales, he can't disallow royalty paid to AE at same % on AE sales on the ground that no benefit was derived from royalty on AE sales as AE sales are sale by assessee to itself. Such disallowance can't be made unless TPO able to demonstrate that royalty was already included in price of purchases made by AE from assessees

Income from production of hybrid seeds from basic seeds is agricultural income and is exempt from ta

IT : Income from activity of production of hybrid seeds from basic seeds would be agricultural income exempt under section 10

Sum collected to be regarded as inclusive of service-tax if invoice doesn’t show the tax separately

ST : Where service tax was not shown separately in invoice, sums collected by assessee were to be regarded as cum-tax and service tax was to be determined by making back calculations

Employees' contribution of EPF and ESI is allowable if remitted before the due date of filing return

IT: Employee's contribution under EPF and ESI Act, remitted after due dates prescribed under said statutes, but before extended due date for filing return under section 139(1), is allowable as deduction

Customs Circular No 22/2013 dated 24-06-2013

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise and Customs

Circular No. 23/2013-Customs

New Delhi, Dated 24^th June, 2013

To

All Chief Commissioners of Customs /Customs (Prev)

All Chief Commissioner of Customs and Central Excise

All Commissioners of Customs /Customs (Prev)

All Commissioners of Customs and Central Excise

All Director Generals under CBEC

Sir/Madam

Sub: Introduction of Risk Management Systems (RMS) in Exports–regarding.

Attention is invited to the Board Circular No.43/2005-Cus dated 24.11.2005 whereby Risk Management System (RMS) was introduced in Imports as a trade facilitation measure and for selective interdiction of high risk consignments for Customs control.

2. Implementation of RMS in Imports has been one of the most significant steps in the ongoing Business Process Re-engineering initiative of the department. In continuation of this initiative, the Board has now decided to introduce RMS in exports in Customs locations where the Indian Customs EDI Systems (ICES) is operational. The RMS in exports will enable low risk consignments to be cleared based on self assessment of the declarations by exporters. This will enable the department to enhance the level of facilitation and speed up the process of cargo clearance. By expediting the clearance of compliant export cargo, the RMS for exports will contribute to reduction in dwell time, thereby achieving the desired objective of reducing the transaction cost in order to make the business internationally competitive. The RMS in Exports is scheduled for implementation from 15.07.2013 onwards.

3. The RMS for exports is developed with the following components (i) ensuring appropriate control measures for proper and speedy disbursement of drawback and other export incentives (ii) effective utilization of human resources, to match the workload with the resources available (iii) ensuring proper and expeditious implementation of existing control over export under the applicable Allied Acts and Rules.

4. With the introduction of the RMS in exports, the present practice of routine verification of self-assessment and examination of Shipping Bills will be discontinued and the focus will be on quality assessment, examination and post clearance audit (PCA) of Shipping Bills selected by the Risk Management System.

5. Shipping Bills filed electronically into ICES through the Service Centre or the ICEGATE will be processed by RMS. The RMS will process the data through a series of steps/corridors and produce an electronic output for the ICES. This output from RMS will determine the flow of the Shipping Bill in ICES i.e. whether the Shipping Bill will be taken up for Customs control (verification of self-assessment or examination or both) or to be given “Let Export Order” directly after payment of Export duty (if any) without any verification of self-assessment or examination. The RMS will also provide instructions for Appraising Officer/Superintendent, Examining Officer/Inspect or or the Let Export Order (LEO) Officer, wherever necessary. The decisions communicated by the RMS on the need for verification of self-assessment and/or examination and the appraising and examination instructions communicated by the RMS have be followed by the field formations. It is possible that in a few cases, the field formations might decide to apply a particular treatment to the Shipping Bill which is at variance with the instructions received for the RMS owing to risks which are not factored in the RMS. Such a course of action shall however be taken only with the prior approval of the jurisdictional Commissioner of Customs or an officer authorised by him for this purpose, who shall not be below the rank of Addl./Joint Commissioner of Customs, and after recording the reason for the same. A brief remark on the reasons and particulars of Commissioner’s authorization should be made by the officer examining the goods in the departmental comments in the EDI system.

6. Board has decided to implement RMS in export in two phases. In the first phase the RMS will process the data and provide the output to ICES only up to goods examination stage. In the second phase, the RMS will also process the Shipping Bill data after the Export general Manifest (EGM) is filed electronically and provide output to ICES for selection of shipping Bills for Drawback scrutiny and Post Clearance Audit (PCA).

7. With the implementation of export RMS, a Post Clearance Audit (PCA) function will be introduced in respect of export s after the LEO is given for export consignment. The objective of PCA is to monitor, maintain and enhance compliance levels, while reducing the dwell time of cargo. The RMS will select the Shipping Bills for audit, after issue of LEO, and these selected Shipping Bills will be directed to the audit officers for scrutiny by the ICES. It may be noted that the auditors are specifically being instructed to scrutinize declarations with reference to exports incentives, duty drawback and other compliance requirements Wherever necessary, RMS will provide instructions for audit Officers. In case any possible short levies or undue claim of export incentives are noticed, the officer will issue a Consultative Letter setting out the ground for their views to the exporters/CHAs. Audit Officers should also scrutinize declarations with reference to data quality and advise the exporters/ CHAs suitably where the quality of their declarations is found deficient. Such advise is expected to be followed and will be monitored by the Local Risk Managers (LRM).

8. As in the case of Import, the national management of the Risk Management systems shall be the responsibility of the Risk Management Division. There will be a single Local Risk Manager (Admin) for a location for both import and export.

9. The implementation of RMS for exports will necessitate reorganization for staff. Board desires the Chief Commissioner of Customs to undertake a comprehensive re-organization of the officers deployed for processing of Shipping Bills. The present appraising facilities should be right-sized in tune with the quantum of Shipping Bills coming for assessment. A separate PCA section needs to be created and sufficient staff should be diverted to the Post Clearance Audit. The strength of the staff for examination of cargo would also be required to be readjusted.

10. With the introduction of RMS in exports, the selection of Shipping Bills for verification of Self-assessment and/or examination will be based on the output given by RMS to ICES. Accordingly the examination and assessment norms contained in the Board’s Circulars No. 06/2002–Cus dated 23.01.2002 , 01/2009-Cus dated 13.01.2009 and 28/2012-Customs dated 16.11.2012 would stand modified to that extent. However, owing to some technical reasons if the RMS fails to provide output to ICES or RMS output is not received at ICES end in time, the existing norms of assessment and examination prescribed by the aforementioned circulars will be applicable.

11. To begain with, RMS in Exports will be introduced w.e.f. 15.7.2013 at ICD Mulund and ICD Patparganj. With the implementation of RMS in exports the existing facilitation scheme viz. Accelerated Clearance System vide Circular No.30/2003-Cus dated 4.4.2003. would be phased out. As the deployment of the export RMS is likely to take place in a phased manner across the ICES locations, the existing facilitation scheme will continue to be operative in each Customs station until the operationalisation of the export RMS at the station.

12. Board desires DG (Systems) to forward the detailed instruction/draft public notice to field formation separately.

13. Any difficulty in implementation of these instructions should be brought notice of the Board immediately.

Yours faithfully,

( R.P. Singh )

Director (Customs)

F.No.450/28/2011-Cus.IV

RBI/2012-13/539 A. P. (DIR Series) Circular No.113 dated 24-06-2013

Reserve bank of India

A.P. (DIR Series) Circular No. 113

June 24, 2013

To

All Authorised Dealer Category –I Banks

Madam / Sir

External Commercial Borrowings (ECB) for the low cost affordable housing projects

Attention of Authorized Dealer Category - I (AD Category - I) banks is invited to A.P. (DIR Series) Circular No. 61 dated December 17, 2012 on the captioned subject in terms of which ECB for low cost affordable housing projects is allowed as a permissible end-use under the approval route.

2. The policy regarding ECB for the low cost affordable housing projects has been reviewed and it has been decided to modify the guidelines contained in the aforesaid A.P. (DIR Series) Circular as under:
   
   
   
   1. Developers/builders should have a minimum of three (3) year’s experience in undertaking residential projects as against five (5) years prescribed earlier and should have good track record in terms of quality and delivery.
   
   
   2. The condition of minimum paid-up capital of not less than INR 50 crore, as per the latest audited balance sheet, for Housing Finance Companies (HFCs) stands withdrawn. However, the condition of the minimum Net Owned Funds (NOF) of Rs. 300 crore for the past three financial years remains unchanged.
   
   
   3. The aggregate limit for ECB under the low cost affordable housing scheme is extended for the financial years 2013-14 and 2014-15 with a ceiling of USD 1 billion in each of the two years, subject to review thereafter.
   
   
   4. The ECB availed of by developers and builders shall be swapped into Rupees for the entire maturity on fully hedged basis.
   
   
   
   


3. Issue of fixation of spread for on-lending by National Housing bank (NHB):
   

   Interest rate spread to be charged by National Housing Bank (NHB) may be decided by NHB taking into account cost and other relevant factors. NHB shall ensure that interest rate spread for HFCs for on-lending to prospective owners’ of individual units under the low cost affordable housing scheme is reasonable.

   
   


4. Housing Finance Companies (HFCs) while making the applications, shall
   
   
   
   1. it a certificate from NHB, the nodal agency, that the availment of ECB is for financing prospective owners of individual units for the low cost affordable housing;
   
   
   2. ensure that cost of such individual units does not exceed Rs. 30 lakh and loan amount does not exceed Rs. 25 lakh;
   
   
   3. ensure that the units financed are having maximum carpet area of 60 square metres; and
   
   
   4. ensure that the interest rate spread charged by the HFCs to the ultimate buyer is reasonable.
   
   
   
   
   


5. All other aspects of the scheme mentioned in the aforesaid A.P. (DIR Series) Circular would remain unchanged. Authorised Dealers may bring the contents of this Circular to the notice of their constituents and customers.


6. The directions contained in this circular have been issued under Section 10 (4) and Section 11 (1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.

Yours faithfully

(Rudra Narayan Kar)

Chief General Manager in-Charge

RBI/2012-13/539

Customs Notification No. 33/ 2013 dated 19-06-2013

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

Notification No. 33/2013-Customs

New Delhi, dated the 19^th June, 2013

G.S.R. (E). - In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 96/2008 - Customs, dated the 13^th August, 2008 , published in the Gazette of India, Extraordinary, vide number G.S.R. 590 (E), dated the 13^th August, 2008, namely:-

In the said notification, in the Schedule, after serial number 30 and the entries relating thereto, the following serial number and entries shall be added, namely:-

Sl. No.	Name of the Country
“31	Republic of Haiti”.

[F. No. 354/189/2005-TRU (Vol II)]
(Akshay Joshi)

Under Secretary to the Government of India

Note:- The principal notification was published in the Gazette of India, Extraordinary, vide number G.S.R. 590 (E), dated the 13^th August, 2008 and was last amended vide notification number 19/2013 - Customs, dated the 2^nd April, 2013 , published in the Gazette of India, Extraordinary, vide number G.S.R. 198 (E), dated the 2^nd April, 2013.

Online taxpayers may not need to send papers to CPC in Bangalore

Millions of taxpayers filing returns online may no longer have to send paper documents to the central processing unit here, with CBDT proposing to introduce electronic verification for such filings, a top official said.

"It (introduction of electronic verification of online income tax returns) is in very advanced stage. Some clearances, some approvals have to be taken. Amendments to the Information Technology Act will be required. Then it will go to Parliament," Chief Commissioner of Income Tax Bangalore-1 K Satyanarayana told reporters here.

The new measure, expected to be operational by September this financial year, will save taxpayers the hassle of sending paper documents by post and tracking its acknowledgement, he added.

Citing the example of how electronic verification of online income tax returns is done in USA, Satyanarayana said amendment to the Information Technology Act would be needed to introduce electronic verification of online income tax returns in India.

At present, two options are available for taxpayers to e-file ITR, either e-file ITR by affixing digital signature or without affixing digital signature.

If the digital signatures are affixed, there is no need to send ITR-V to the I-T department's central processing centre (CPC) in Bangalore. In the other case, the tax payer is required to take a print-out of ITR-V and send it to the I-T department within 120 days of e-filing.

As per the Information Technology Act, a digital signature is equivalent of a physical signature. So, anyone filing returns electronically with digital signature need not send ITR returns form for physical verification.

In 2012-13, a 31 per cent jump was seen in e-filings with 2.14 crore assessees filing returns online as compared to 1.64 crore in 2011-12.

Recently, the Central Board of Direct Taxes (CBDT) has made e-filing mandatory for those with an annual income of Rs 5 lakh or more for the financial year and assessment year 2013-14. The tax department expects a huge surge in the number of online filings.

Satyanarayana said that the department also wants to introduce "new concept of third party validation of utilities developed for e-filing which will avoid mistakes in returns and bring uniformity in the interpretation of tax laws in filing of returns"

Tax refunds are not a mystery any more

IT Professional in Delhi had filed tax for the Assessment Year 2011-12 but he is still waiting for the tax refund for the return he filed. He has even cross checked whether he filed the returns in the appropriate manner.

This is not an isolated story; we all have our version of the story and a tale of anxiety and harassments with our hard earned money hanging midway. Taxpaying community, especially individuals are often a frustrated lot when it comes to refund of the taxes paid in advance.

Filing of tax has been a tedious task in itself and getting a refund done is even more cumbersome. The evolution of technology and its adaption in government departments and the increase of skill set, has decreased the problem of refund, however the problem still persists.

Why a tax refund arises?

The key reason why the situation of tax refund arises is due to high rate of interest on tax deductibles at source (TDS) compared to the actual tax payable. It has been seen that sometimes the income calculation of a person is higher when compared to advance tax liability, thereby generating the eligibility of reimbursement.

Further, eligibility comes into picture when the individual doesn't declare his full income to the employer. Medical insurance premiums, housing loans final certificates, interest on educational loans and LTAs are some common examples through which employee can claim tax refunds. Apart from that, Non Resident Indians are also eligible for tax refunds on the interest generated on the NRO account. The tax deducted is equivalent to 30.9 percent.

Eligibility Criterion:

If you are an individual whose income in the year is less than Rs. 2,00,000, then sit back and relax as you are not entitled to file income tax. The eligibility criteria is simple, you will have to calculate your tax liability according to the tax slabs of the Income Tax Act. If the taxes paid during the year were higher than the tax liability, you can get the refund. Please make sure that you have taken into account the deduction and exemptions based on the IT rules. It might also happen that you face a rejection of your refund application because of the wrong calculations of exemptions, therefore cross verify before filing the return.

Refund Status:

Income tax refunds can be checked online and the status can be known by visiting the site of income tax department and also State Bank of India dedicated mail id, which is itro@sbi.co.in. The website of IT department asks for your PAN number and the Assessment Year in which you filed the tax for the purpose of generating the refund status. State Bank of India has been assigned the duty of refunding the claims of tax payers on behalf of the IT department.

Refund Timings:

The difference between timing of offline returns and online returns are wide. The reach of online returns is not so much compared to that of offline returns in India. People are still more comfortable in going to their lawyers and Chartered Accountants for correct filing of the return and submitting the same by hand. The complications of tax calculations sometimes make this a compulsion. However, it must be noted that the refund timing vary. In case of online returns, refund process is faster and takes a maximum of six to seven months but this limit can go up to two years in case of offline returns. Sometimes, the delay is because of the change of addresses or incorrect bank account details.

Offline process is also disadvantageous in the sense that the government style of working sometimes doesn't solve the problem. You will have to visit your Assessing officer along with the documents of your income. But, it is still not guaranteed that your plea will be listened to and the next option for you in that case is to send the details to the chief commissioner of the particular area. In this case, you will have to submit the return copy. If the issue is not resolved for a long time, you can approach a tax ombudsman near you.

Refund timings have been a big issue for the Income Tax Department as many claimants have requested to ease the process and make it faster and user friendly. When you file the return on time with all the necessary documents and guidelines, you want a system that will ensure safety of your reimbursement. In all the cases, sometimes a wait of two years is too much to handle.

Income Tax refund is no longer a mystery that causes sweat beads to appear, all you have to be is bit proactive and be sure of the data entered by you. To have an instance valuation of your income tax, Investment Yogi has an Income Tax Calculator devised at your disposal.

If actual purchases couldn’t be proved, discrepancy in closing stock would be bogus and unexplained

IT : Where assessee had not produced any evidence to show actual purchases, shortage in stock could be added as bogus purchases

Matter remanded to AO as necessary material was produced by assessee before CIT(A) to justify its cl

IT : Where for claiming deduction under section 10B assessee did not produce necessary material before Assessing Officer, but produced same before Commissioner (Appeals), matter was to be remitted to Assessing Officer for passing a de novo order

Exp. incurred exclusively for business can’t be disallowed even if other persons too are benefited

IT : Merely because some other persons are incidentally benefited from expenses incurred by assessee, same would not change character of expenses from being wholly and exclusively for purpose of business

Eligibility for refund of ST paid on services used for exports to be determined from date of filing

ST : Refund under Notification No. 41/2007 in respect of service tax paid on services used for export of goods is allowable if requirements of Notification are satisfied on date of filing of refund claim, even if such requirements were not satisfied on date of export

De-facto boycott of a particular ITAT member by seeking adjournment is deemed ‘contempt of court’

IT : CAs & lawyers can't seek adjournments on the ground that objectivity of ITAT member is not beyond doubt even if petition in that behalf is pending before the jurisdictional High Court. CA/Advocate seeking adjournment for the reason that he doesn't want to appear before a particular Bench/member of ITAT commits 'contempt of court' by 'forum shopping' or 'de facto boycott' of a judicial officer. It is not open to CA/Advocate/bar association/group of ARs to seek adjournments on the ground that

Reassessment proceedings become null and void if section 143(2) notice wasn’t issued

IT : Absence of notice under section 143(2) makes reassessment null and void

INCOME-TAX APPELLATE TRIBUNAL, MUMBAI BENCHES, MUMBAI STATEMENT SHOWING THE LIST OF THIRD MEMBER CASES PENDING AS ON 06.06.2013

INCOME-TAX APPELLATE TRIBUNAL, MUMBAI BENCHES, MUMBAI STATEMENT SHOWING THE LIST OF THIRD MEMBER CASES PENDING AS ON 06.06.2013 Sr Appeal No. Name of the Bench Points involved To whom REMARKS No Assesses assigned MUMBAI BENCH 1. ITA Nos. 525 to Mrs. Sumanlata S/Shri. 1. "Whether, non-issuance of Zonal Vice- Fixed on 530/Mum/2008, Bansal, Mumbai 1. R.S.Padvekar, the notice as provided in Sub.- President(MZ) 31.07.2013 A.Ys.1999-2000 to J.M. sec.(2) to Section 143 of the I.T. 2004-05 2.B.Ramakotaiah, Act in the case of assessment A.M. framed u/sec.153A, in consequence of search under sec. 132, is merely an irregularity and the same is curable?" 2. "Whether ,on the facts of the case, failure on the part of the Assessessing Officer (A.O.) to issue notice to the assessee as per provisions of Sub-sec.(2) to Section 143 shall have the effect of rendering the entire assessment framed u/sec. 153A of the Act as null and void?" 2. ITA 5229/M/2004 M/s. Standard S/Shri. "Whether on the facts and Shri. R.S. Syal, After the & 5303/M/2004 Chartered Bank 1.R.S.Padvekar, circumstances of the case A.M.p Disposal of MA A.Y. 1996-97 J.M. interest income of 2.Rajendra Rs.73,92,16,611/- Singh, A.M. (Rs.39,23,71,781+Rs.34,68,44, 830) is asseable to tax in the year under consideration?" 1 PUNE BENCHES 1. ITA No. M/s Audyogik S/Shri. 1. "In the facts and Zonal Vice- Fixed on 1712/PN/2007, Shikshan Mandal, 1. Mukul Shrawat, circumstances of the case, President(MZ) 19/07/2013 for A.Y. 2004-05. Pune, J.M. whether the property of the trust 2.D. Karunakara i.e. car, be held `made Rao, A.M. available' for the use of the trustee, specified person u/s 13(3) of the Income Tax Act 1961?" 2. "In the facts and circumstances of the case, whether the expression `made available for the use of' trustee ipso facto be understood to have been deemed used or applied for the benefit of the said trustee, with or without the actual use or application of the property of the trust i.e. car for personal benefit of the trustee in view of section 13(2) of the Income Tax Act 1961?" 3. "In the facts and circumstances of the case, whether the case of the assessee falls within the ambit of the provisions of clause (b) of section 13(2) of the Income tax Act 1961?" 4. "If the answers to above questions at sr. No. (1) to (3) are affirmative, whether the denial of benefits of section 11 be restricted to such income of the trust used or applied directly or indirectly for the benefits of trustee or, in alternative, the total income of the trust is not entitled for the benefits of section 11 of the Act." 2 DELHI BENCHES 1. IT(SS)A No. Mr. Vijay Bansal, S/Shri 1. "Whether the addition on Hon'ble Vice- 438/Del/2005 & Haryana. 1. Hari Om account of undisclosed President (BZ) IT(SS)A.22/Del/06 Maratha,JM. investment on the investment 2.T.S.Kapoor, on the education of daughter of AM. the assessee, in the block period, found to have been made has been correctly sustained or it deserves to be deleted in the given facts and the circumstances of the case? 2. Whether an addition made and sustained on account of undisclosed investment found in the construction of the property deserves to be deleted or sustained in the given facts and circumstances of the case? 3. Whether any addition can be made in the business income of the assessee on the basis of evidence gathered behind the back of the assessee by opening a floppy found and seized during the search conducted u/s 132(1) of the Act or not? 4. Whether the cash found during search from a brief-case stands explained, in the given facts and circumstances of the case or not? 3 LUCKNOW BENCHES 1. ITA No. Ms Rajya Krishi S/Shri 1."Whether" the CIT(A) has Shri.Barathvja Adjourned Sine 141,142,143 & Utpadan mandi 1. I.S.Verma,J.M. jurisdiction to decide the Sankar,Vice die 144/LKW/2009 Parishad, 2. N.K.Saini, A.M. assessee's petition for stay or President (as per C.O.No.06 to Lucknow recovery of demand during the dt.03.04.2013) of 09/LKW/2009 pendency of assessee's appeal the Hon'ble A.Y.2001-02,2002- furnished under section 246A of President) 03,2003- the Act?" 04 &2006-07 2. "If the CIT(A) has jurisdiction to decide the assessee's petition for stay of recovery of demend , than under which provisions of law the CIT(A) will pass such an order i.e. what will be the nature or status of such order passed by the CIT(A)?" 3. "Whether, such order (supra) passed by the CIT(A) is appealable before the Tribunal or not i.e. can such an order be appealed against before the Tribunal by way of an appeal under section 253 of the Act, or can be challenged only before the Hon'ble High Court by way of writ petition?" 4. "If such an order(Supra) is found to be appealable before the Tribunal, then can the Tribunal entertain such an appeal against such order without there being appeal before it against the order of CIT(A) in appeal against the order of the Assessing Officer or other orders appealable under section 246A of the Act, as the case may be, for the reason that the CIT(A) has not preferred to decide the assessee's appeal pending before him?" 4 2. ITA No. M/s Zazsons S/Shri. "Whether, on the facts and the Shri. S. V. Adjourned Sine 219/LKW/2009 and Exports Ltd. 1. I.S.Verma, J.M. circumstances of the case as Mehrotra, A.M. die C.O.No.23/Lck/ Kanpur 2.N.K.Saini, A.M. well as in law, the Revenue's (As per order 2009 A.Y.2005-06 ground Nos.3 to 6 be allowed or dt.21.03.2013 of not?" the Hon'ble President) 3. SPNo.03/Lkw/2012 Smt.Uma Pandey, S/Shri. SP No.03/Lkw/2012 Shri.G.D.Agarwal, Hearing is (A/o ITA Sunil Kumar Hon'ble Vice- awaited. 188/Lkw/2010) Yadav,J.M. "Whether, the stay earlier President (DZ and A.Y. 2007-08 2.B.R.Jain,A.M. granted by the Tribunal can be LZ) SP.No.04/Lkw/201 M/s.State Urban extended till disposal of the 2 Development appeal in a case where the (A/o ITA Agency. appeal has been heard by the 103/Lkw/2012) Tribunal and is pending with A.Y. 2007-08 the Members for order?" Sd/- J.M. "Whether, on the peculiar facts, circumstances of this case and in law, there is any justification in extending the stay of the disputed demand that already had run beyond 365 days or the application so made by the assessee is liable to be rejected?" Sd/- A.M. SP No.04/Lkw/2012 "Whether, under the facts and circumstances of the case, the outstanding demand can be stayed outrightly or subject to payment of part of demand in instalments as proposed?" Sd/- Sd/- J.M. A.M 5 4. ITA No. Smt. Uma Pandey S/Shri. "Whether, under the facts and Shri.G.D.Agarwal, Hearing is 188/Lkw/2010 1.Sunil Kumar circumstances of the case, the Hon'ble Vice- awaited. A.Y. 2007-08 Yadav,J.M. payments received by the President (DZ/LZ) 2.B.R.Jain,A.M. assessee from M/s. Amit Poly Yarn Ltd. (now known as M/s Amitech Ind. Ltd) are receipt as an advance against sales made during the course of commercial transactions and therefore provisions of section 2(22)(e) of the Income-tax Act, 1961 are not attracted to these payments or the aforesaid payments are purely an advance/loan made to the assessee, attracting the provisions of section 2(22)(e) of the Act? "Whether, the issue of allotment of shares for Rs.10 lakhs can be restored to the Assessing Officer to investigate the fact as to whether the allotment of shares was unilateral act of the company i.e M/s. Amitech Ind. Ltd. or the allotment was done at the instance of the assessee in order determine the applicability of provisions of section 2(22)(e) of the Act to the benefit accrued to the assessee on allotment of shares or addition of Rs.10 lakhs can be confirmed by holding that benefit accrued to the assessee on allotment of shares attracts provisions of section 2(22)(e) of the Act on the basis of material available on record?" Sd/- Sd/- J.M. A.M 6 JABALPUR BENCH 1. ITA No. Shri. Anil S/Shri "Whether on the facts and the Hon'ble ---- 327/Jab/2009 Jaiswal, Jabalpur 1.I.S.Verma, J.M. circumstances of the case as President, A25/10-2004 2.B.R.Kaushik, well as in law, the CIT(A) was I.T.A.T. A.M. justified in deleting the addition made, while making assessment under section 153A read with section 143(3) of the Act on protective basis?" KOLKATA BENCH 1. ITA Nos. M/s Shyam Steel S/Shri "Whether in the facts and Hon'ble Vice- Not yet fixed 65/Kol/2010, & Industries Ltd., 1.George Mathan, circumstances of the case the President 655/Kol/2011. Kolkata. J.M. power subsidy received by the Chennai/Kolkata A.Y.2006-07 2007- 2.C.D.Rao,A.M. assessee is capital in nature or Zone. 08 revenue in nature ?" 2. ITA No. M/s Ceean S/Shri "Whether or not, on the facts Hon'ble Vice- Not yet fixed 1120/Kol/2012. Commerce (P) 1.Promod Kumar, and in the circumstances of the President A.Y.2003-04. Ltd., Kolkata. A.M. case and in accordance with the Chennai/Kolkata 2.Mahavir Singh, low, the value of sale Zone. J.M. consideration to be adopted for computing capital gains in the hands of the assessee should be taken at Rs.32,84,300/- or at Rs. 56,00,100/-? As the amendment in section 50C by Finance (N0.2) Act, 2009, w.e.f. 1.10.2009, is to be treated as clarificatory in nature and retrospective in application". 7 3. ITA NO. Sri Partha Mitra, S/Shri. 1."Whether in view of the Hon'ble Vice- Not yet fixed 848/Kol/2012 Kolkata. 1.Pramod Kumar, provision of section 254(2A) of President AM. the Act as also the proviso Chennai/Kolkata 2.George Mathan, thereto and the decision of the Zone. JM. Hon'ble Supreme Court in the case of Chinnayappa Mudaliar can the decision of the Coordinate Bench of this Tribunal in the case of Multiplan India Pvt. Ltd. as also the decision of the Hon';ble Madhya Pradesh High Court in the case of Estate of Late Tukojirao Holkar - Vs.- CWT be held to be applicable on the facts of the case" 2."Whether in terms of the provisions of Rule 19(2) of the Income Tax Appellate Tribunal Rules read with Rule 24 & 25 (Appellate Tribunal) Rules, 1963, an appeal can be dismissed in limine without addressing the merits of the appeal just because the appellant does not appear"? 3."Whether the decision in the case of Multiplan India Pvt. Ltd. 38 ITD 320 (Del.) will hold good in law as on i.e. even after insertion of Rule 24 & 25 of Appellate Tribunal Rules, 1963.? 4."Whether it is open to the Tribunal to dismiss an appeal, without addressing itself to the merits of issues in appeal, because one of the parties has not appeared before the Tribunal"? 8 PATNA BENCH (Circuit Bench, Ranchi) 1 MA No. Shri. Ghasi Ram S/Shri. "Whether, on the facts and in Hon'ble Zonal Pending for 11 (Pat) / 2007 Agarwal, Ranchi 1. B. R. Mittal, the circumstances of the case, Vice President hearing. arising out in J.M. the application of the (KZ) IT(SS)A No. 2. B.K. Haldar, department for recall of the 45/Pat/05) A.Y. 86- A.M. order of the Tribunal dt. 21st 87 to 97-98 June, 2006 passed in IT(ss)A No. 91(Pat)/05 to delete the amount of Rs.45,823/- is to be allowed as held by the learned Accountant Member or is to be rejected as held by the learned Judicial Member." 2 Int. Tax Appeal M/s Coalsesce S/Shri. "Whether, in the facts and Hon'ble Zonal Pending for Nos. 06 to Investment (P) 1. B. R. Mittal, circumstances of the case, the Vice-President hearing. 08/Pat/06 Ltd., Ranchi J.M. assessee was liable under the A.Ys.1997-98 to 2. B.K. Haldar, Interest Tax Act to pay interest tax 1999-2000 A.M. on the gross interest received on the loans and advances granted by it during the impugned assessment years." GUWAHATI BENCHES 1 ITA 47, 48 and M/s Purbanchal S/Shri. 1. "Whether, on the facts and Hon'ble Not yet fixed. 49(Gau)/2004 Safety Glassess 1.Hemant circumstances of the case the President, A.Y.1996-97, 1997- (P) Ltd., Sausarkar, J.M. Ld. CIT(A) was justified in I.T.A.T. 98 & Guwahati. 2.B.R.Kaushik, deleting the additions made by 1998-99 A.M. the A.O. under section 69 of the Act as undisclosed investment amounting to Rs. 9,21,461/-, Rs.2,20,990 and Rs.3,66,526/- for the assessment years 1996- 97, 1997-98 and 1998-99 respectively on the ground that the reassessments made by the 9 A.O. for the assessment years in question were based on the information received from Bureau of Investigation (Economic Offence) (Guwahati) and that the information was based on material and documentary evidence to substantiate the assessments?" 2. "Whether on the facts and in the circumstances of the case the order of the Ld.CIT(A) is required to be set aside with the direction to decide the issue afresh after giving proper opportunity to the assessee on the relevant information received by the A.O. on 25.02.2003 from the Bureau of Investigation (Economic Offence)?" 3. "Whether, on the facts and in the circumstances of the case, the Ld. Judicial Member was justified in holding that the issuance of notice u/s 148 cannot hold good and, therefore, the assessment u/s 143(3) r.w.s. 147 of the Act is illegal, unjustified and void or the Ld. Accountant Member was justified in holding that the reopening of assessment and subsequent assessment made by the A.O. is justified?" As per the order dt.16.04.2008 of the Hon'ble President "All the three questions would be considered u/s 255(4) by the President." 10 2. ITA Nos. 96, 97 & Brooke Bond S/Shri. 1. "Whether, the learned Shri.Pramod Adjourned Sine 98(Gau)/2002 India Ltd., 1.Hemant CIT(A) has erred in law and in Kumar,A.M. -die A.Y.1990-91, 1991- Calcutta. Sausarkar, J.M. facts in directing the A.O. to 92, 1992-93 2.B.R.Kaushik, consider the income from A.M. interest and dividend as business income for the purpose of eligible deduction u/s 32AB of the Act, in view of the decision in the case of CIT Vs. Dinjoy Tea Estate (P) Ltd. (1997) 224 ITR 263 (Gau), 271 ITR 123 (Cal), 273 ITR 470 (Mad) and 224 ITR 263 (Gau)?" 2. "Whether, this Bench of the Tribunal working under the jurisdiction of the Hon'ble Guwahati High Court can allow the claim of the assessee that income from interest and dividend is to be taken as business income for the purpose of eligible deduction u/s 32 AB of the Act in view of the decisions in the cases of (i) Britania Industries Ltd. Vs. JCIT (2004) 271 ITR 123 (Cal) and (ii) DCIT Vs.United Nilgiris Tea Estate Co. Ltd.(2005) 273 ITR 470 (Mad)?" 3. "Whether, on the facts and circumstances of the case the claim of expenditure of Rs.94,363/- and Rs.1,26,718/- attributable to the foreign tour of Mrs. R. Sen, wife of the director, Mr. D. Sen, was not wholly and exclusively for the 11 purpose of business?" 4. "Whether, in view of change of stand by the assessee regarding nature and purpose of expenditure taken before the Ld.CIT(A) for the first time the issue was required to be restored to the A.O. for fresh adjudication after enquiring into the claim of the assessee?" 3. ITA No. Shri. Shyam S/Shri. (1) "Whether, on the basis of Hon'ble Not yet fixed. 09/Gau/2006 Sunder Malpani, Hemant Sausarkar, facts and in the circumstances President, A.Y.2002-2003 Jorhat J.M. of the case, the assessee is I.T.A.T. B.R.Kaushik, entitled to deduction u/s 80IB?" A.M. (2) "Whether, in view of the decision in the case of CIT Vs Down Town Hospital Ltd. 251 ITR 683 (Gau), the issue was required to be restored to the learned CIT(A) for fresh adjudication after ascertaining whether all the conditions u/s 80 IB are fulfilled?" 4. ITA 161/Gau/2003 M/s 3R, S/Shri 1. "Whether in the facts and Shri. Not yet fixed Block period f Gauwahati. 1. Hement circumstances of these cases the D.K.Tyagi,J.M. 1989-90 to 1998-99 Sausarkar, J.M. block assessments can be & 1999-2000. 2. B.R.Kaushik, considered invalid?" A.M. 2. "Whether, in the facts and circumstances of these cases it can ITA 162/Gau/2004 M/s Panbazar be held that the A.O. did not bring Block period 1989- Diagnostic on record the prima facie evidence for 90 to 1998-99 & Centre, Guwahati. invoking jurisdiction and initiation of 1999-2000 proceedings u/s 158 BD of the Act?" ------ do ------- 12 BANGALORE BENCH 1. MP.No Shri Mahesh S/Shri/Smt. 1."Whether, on the facts and in Hon'ble Vice- Fixed on 41/Bang/2010 Hasmukh Boriya, 1.P.Madhavi Devi, the circumstances of the case, President (BZ) 28/06/2013 (ITA 773/B/10) J.M. there is any mistake apparent 2. A.Mohan from record rectifiable u/s Alankamony, 254(2) of the IT Act, when the A.M. Tribunal adjudicated the Revenue's appeal on the sole ground of limitation in favor of the Revenue, but not remitted back the issue to CIT(A) for adjudication on merits when such an issue of remission/merits was not before the Tribunal either by a prayer submission or cross objection by the Assessee/AR other than the only argument to defend his ground on technicality?" 2."Whether, the inclusion of a copy of a favourable judgment to the assessee on the issue of merits in the paper book produced before the ITAT would amount to be a ground or submission enabling the assessee to invoke the rectification jurisdiction of the Tribunal, when during the course of the hearing there were no such arguments or submission on merits/remission before the Tribunal by the Assessee/AR?" 13 CHANDIGARH BENCH 1. ITA No. Shri . R.K.Garg S/Shri . Per J.M. Hon'ble Vice Adjourned 142/CHD/1999 1.M.A.Bakshi, VP 1. "Whether, on the facts and in President sine-die A.Y.97-98 2. N.K.Saini. A.M. the circumstances of this case, (Chandigarh) ITA 550, 489, 586, the guarantee commission 587 & 588/CHD/99 received by the assessees is a A.Y.87-88, 90-91, revenue receipt or a capital 98-99, 1999-2000 & receipt?" 2000-2001 2. "Whether, the decision of the Tribunal in assessee's own case for the assessment year 88-89 to the effect that the guarantee commission is a revenue receipt ITA No. Smt. Sunaina is inapplicable in view the 143/CHD/1999 Garg decision of the Hon'ble Madras A.Y.97-98 High Court in the case of CIT v. ITA Nos. 589, 590 Pondicherry Industrial & 591/CHD/2002 Promotion Development & A.Y. 1998-99, Investment Corporation Ltd. 1999-2000, (supra), and the decision of 2000-2001 Delhi High Court in the case of Suessen Textile Bearings Ltd. ITA 503/CHD/2002 Shri . R.K.Garg, etc. v. Union of India etc. A.Y. 1997-98 & Sons(HUF) (supra)?" 3. "Whether, on the facts and in the circumstances of the case, the additional ground raised by the revenue for the assessment year 90-91 only deserves to be admitted and matter for all the assessment years remitted to the CIT(A) for giving an opportunity to the AO to distinguish the two High Courts cases, referred to above notwithstanding the fact that both the Members of the Bench have decided the issue relating to assessability of the guarantee commission on merits?" 14 Per A.M. 1. "Whether, on the facts and in the circumstances of the case, it could be held that the guarantee commission received by the assessees against their personal assets was a capital receipt?" 2. "Whether, on the facts and in the circumstances of the case and also in law, the Ld. CIT(A) should have provided and opportunity of being heard to the Assessing Officer when there was a specific direction by the Tribunal to do so, before arriving at a conclusion on the basis of judgment of Hon'ble Delhi High Court in the case of Suessen Textile bearing Ltd. and others V Union of India, CC2 JJX 0082 and Hon'ble Madras High Court in the case of CIT V. Pondicherry Indl Promotion Development and Investment Corp. Ltd. (2000) 245 ITR 859, that the amount received by assessees was a capital receipt. AMRITSAR BENCH 1. IT(SS)A No. Sh.Vinod Goel S/Shri Shri H.S.Sidhu. Zonal Vice Pending for 14/ASR/2005. 1. H.S. Sidhu, 1. "Whether, on the facts President(CZ) fixation J.M. and in the circumstances of IT(SS)A M/s Sidhant 2.Mehar present case, the issues in the No.13/ASR/2005. Deposits & Singh,A.M. present appeals are covered by Advances(P) Ltd. the decision of the Hon'ble IT(SS)A M/s Trimurti Supreme Court in the case of No.12/ASR/2005 Deposits & Manish Maheshwary Vs. ACIT Advances (P) Ltd. (2007) 289 ITR 341 (SC) and 15 the decision of the Hon'ble jurisdictional High Court in Income tax Appeal No.519 of 2009 decided on 20-7-2010 in the case of CIT-I, Ludhiana Vs. Mridula Prop. Dhruv fabics, Ludhiana?" 2. "Whether, on the facts and in the circumstances of the present case, non-production of records by the revenue in spite of various opportunities given to them, benefit should go to the revenue or the asessee?" 3. "Whether, on the facts and in the circumstances of the present case, it is mandatory a pre-requisite that the satisfaction to be recorded in the cases of persons searched before issuance of notice under section 158 BD of the Income tax Act. 1961 to the assesse i.e. other person?" Shri. Mehar Singh,AM. 1. "Whether on the facts and on law, valid Block Assessments can be cancelled, on the ground of assumed non- production of record indicating recording of satisfaction u/s 158BD, in a case where such satisfaction is duly evidenced by documents available in the paper book filed by the Deptt. and reproduced verbatim in the order dated 06.12.2006 passed by the Bench and subsequent M.A.dated 21.01.2009, dismissed by the 16 Bench, without even considering such satisfaction?' 2. " Whether, on the facts and on law Block Assessments can be cancelled by applying the decision of jurisdictional High Court, relied upon by the assessee, which lays down the law that satisfaction under section 158BD be recorded before the conclusion of the Block Assessments under section 158BC of the Act, in the absence of vital details of dates of completion of such block assessment being determinative factor, in determining the applicability of the said decision, where the parties to the disputes failed to furnish such dates?" JAIPUR BENCH 1. ITA No. M/s. Mahaveer S/Shri Shri R.K. Gupta, JM. Hon'ble Vice Pending 937/Jp/2011 Exports, Jaipur. 1.R.K.Gupta, JM. 1. "Whether, in the facts and President 2.Sanjay circumstance, the addition of (Ahmedabad Arora,A.M. Rs.3,58,455/- made by one of Zone) the partners S mt.Kanta Nowlkha is liable to be deleted or to be confirmed?" 2. "Whether, in the facts and circumstances, the addition of Rs. 1,00,000/- each in the name of Shri Nem Chand Nowalkha and Shri Pankaj Ghiya of the assessee firm made as capital contribution is liable to be deleted or liable to be set aside to the file of the Assessing Officer?" 17 3. "Whether, in view of the decision of Hon'ble Jurisdictional High Court in case of Kewal Krishan & Partners, 18 DTR 121 (Raj.) the entire capital contribution made/contributed prior to commencencement of business in liable to be deleted or to be confirmed in part and partly to be set aside to the file of Assessing Officer ?" Shri Sanjay Arora,AM. 1. "Whether, section 68 of the Income-tax Act, 1961 can be invoked where the assessee fails to satisfactorily explain the nature and source of a case credit found recorded by him in his books of account for the relevant year, or is the Revenue also required to establish that the assessee had in existence a source of income before the date on which such cash credit was recorded, i.e., in order to treat the same as unexplained u/s. 68?" 2. "Whether, the addition of the impugned sums as unexplained credits u/s.68 can be deleted on the sole ground that the assessee had no source of income prior to the date on which the same were found recorded in the assessee's books of account, notwithstanding the fact that it 18 has completely failed to discharge the burden of satisfactorily explaining the nature and source thereof?" 3. "Whether, the view that a cash credit recorded in the books of account of a partnership firm ostensibly as capital contributed by a partner cannot be treated as unexplained u/s.68 in the hands of the firm even if the assesseefirm fails to satisfactorily explain the nature and source thereof, and more particularly if its fails to adduce evidence to establish that the alleged capital was actually contributed by the partner, is sustainable in law in view of the decision by the Hon'ble jurisdictional high court in CIT v. Kishorilal Santoshilal (1995)216 ITR 9 (Raj.)?" 4.1 "Whether, can capital be contributed by a partner to a partnership-firm prior to the coming into existence of the said firm? In any case, whether the claim of capital contribution by way of transfer of goods on June 1,2006 can be accepted in view of the fact that the assessee-firm itself came into existence only on July 11,2006?" "Is the remand in the case of two cash credits of Rs. 1 lac each in the name of two 19 partners justified under the facts and circumstances of the case, even as contemplated by the Hon,ble jurisdictional high court in the case of Rajshree Synthetics (P) Ltd. v. CIT (2002) 256 ITR 331 (Raj.)?" 2. ITA No.363 & M/s Escorts Heart S/Shri Shri R.K.Gupta,J.M. Hon'ble Vice Adjourned 326/Jp/2011 Institute & 1. R.K.Gupta, 1. Whether in the facts and President (Delhi sine-die. A.Y.2008-09. Research JM. circumstances of the case, the Zone) Centre,Jaipur. 2. SanjayArora, provisions of section 194J are ITA Escort Heart AM. applicable on the payments No.1123/Jp/2011 Super Speciality made to blood bank ?" A.Y.2009-10. Hospital 2. Whether in the facts and Ltd.,Jaipur. circumstances of the case, the provisions of section 192 or section 194J are applicable in case of retainer doctors ? 3. Whether in the facts and circumstances of the case, on the mark up/profits earned by Fortis Health World Ltd. (FHWL) on sale of medicines to the assessee is a commission chargeable to tax under section 194H or is a sale on which provisions of section194H are not applicable? 4. Whether in the facts and circumstances of the case, on the mark up/profits the provisions of section 194C can be invoked by the Tribunal where neither this is a case of department nor of the assessee ? Shri Sanjay Arora, AM. 1.1 Whether the payments to the blood banks for carrying out investigation procedures, are, in 20 the facts and circumstances of the case, made by the assessee- hospital or by its patients? 1.2 Whether, while deciding an issue under appeal, the tribunal required to apply its independent mind thereon, without being influenced by the decision by the first appellate authority for a subsequent year, particularly when the same was not pressed during hearing and, accordingly, the parties not heard thereon? 2. I am in agreement with the Question No. 2 as proposed by my ld. Brother, JM. 3.1 Whether, can on the admitted set of facts brought on record by the parties, the inferential finding/s by the Appellate Tribunal differ from that of either party before it, or is it to necessarily match therewith? Further, is not the tribunal duty bound to, in deciding an issue before it, apply the law as applicable to the facts found by it, including such inferential finding/s? 3.2 Whether, in the facts and circumstances of the case, the supply of medicines by Fortis Health World Ltd.(FHWL) to the assessee-company for its IPD Pharmacy, constitutes an independent business being carried on by FHWL, or is the said supply only the result of 21 the work carried out by its relevant manpower, whose services stand already contracted to the assessee company and subject to tax deduction u/s. 194C of the Act? JODHPUR BENCH 1. ITA No.362(JU)/10 Smt. Supriya S/Shri "Whether, on the facts and Hon'ble Vice- Adjourned Kanwar, Jodhpur. 1. JoginderSingh, circumstances of the case, solitary President sine-die J.M. transaction of purchase and sale of (Mumbai Zone) 2. K.G.Bansal, the same agricultural land with A.M. standing crops situated beyond the prescribed municipal limits, amounts to adventure in the nature of trade?" Sd/- (Joginder Singh,JM) "Whether, on the facts and in the circumstances of the case and sale of five pieces of agricultural land with standing crop, by way of separate conveyance deeds, beyond the prescribed distance from any municipal council, amount to transactions on capital account or adventure in the nature of trade?" Sd/- (K.G.Bansal) A.M 22 RAJKOT BENCH 1. MA. Nos. 61 to Shambhubhai S/Shri "Whether on the facts and Hon'ble Vice 66/Rjt/2010(A.O. of Mahadev Ahir, 1.T.K.Sharma, JM. circumstances of the case, all the President, Adjourned ITA Nos. 637 to Gandhidham. 2.D.K.Srivastava, six Miscellaneous Appelications (Ahmedabad sine-die. 639 & 707 to AM. filed by the Revenue should be Zone) 709/Rjt/2010) dismissed or be allowed?" 2. ITA NO. M/s Meridian S/Shri "Whether on the facts and Hon'ble Vice Fixed on 01/Rjt/2012 Impex,Jamnager. 1.T.K.Sharma, JM. circumstances of the case, the ld. President, 19/06/2013 2. D.K. Srivastava CIT(A) is correct in confirming the (Ahmedabad AM. penalty of Rs. 7,28,621/- levied by Zone) the AO u/s 271(1)(c) of the Income Tax Act, 1961 OR it should be cancelled as proposed by Judicial Member?" Sd/- (T.K.Sharma,JM.) 1."Whether a well-reasoned order passed by the CIT(A) can be reversed or otherwise interfered with by this Tribunal without recording reasons for disagreeing with it. 2. "Whether the case of the assessee, on the facts stated in the Dissenting Note of the AM, is covered by Explanation 1 to section 271(1) (C)." Sd/- (D.K.Srivastava,AM.) 23 INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCHES, MUMBAI LIST OF THIRD MEMBER CASES HEARD AND PENDING FOR ORDERS AS ON 06.06.2013. Sr. Appeal No. Name of the Bench Points involved To Whom Remarks No Assessee assigned MUMBAI BENCHES 1. ITA No. M/s Kaira Can S/Shri. Reference dt. 25.11.2008 u/s 255(4) of the Shri I.P. Bansal, Heard on 6987/Mum/2003 Company Ltd. 1. Sunil Kumar Yadav, Income Tax Act made afresh by S/Shri. JM. 13/06/2013 ITA No. 5280 & J.M. Sunil Kumar Yadav, J.M. and V.K. 5281/Mum/2004 2. V.K.Gupta, A.M. Gupta, A.M. is as under. A.Y. 1996-97 to 1998- 1. "Whether the impugned transactions of 99 leasing out of assets to the assessee is a lease transaction or a financial lease? 2. "Whether the assessee can be held to be the owner of the asset acquired under the above transactions and is entitled for depreciation over the said assets or assessee being a lessee is entitled to claim the lease rent paid to the lessor as a revenue expenditure?" GUWAHATI BENCH 1. ITA No. 25/Gau/2005 M/s Baid S/Shri. "Whether, on the facts and in the Shri.Pramod Heard on A.Y.1996-97 Commercial 1.Hemant Sausarkar, circumstances of the case the transport Kumar,A.M. 04.04.2012 Enterprises Ltd., J.M. subsidy is to be treated as capital in nature in Guwahati. 2.B.R.Kaushik, A.M. view of decisions in the following cases- i) CIT Vs Assam Asbestos Ltd. 215 ITR 847 Heard on 2. ITA No. 20/Gau/2005 M/s Shiva Sakti (Gau) 04.04.2012 A.Y.2001-2002 Floor Mills (P) ii) Sahney Steel & Press Works Ltd. And Ltd., Tinsukia Others Vs CIT 228 ITR 253 (SC) C.O.No.02/Gau/2005 iii) DCIT Vs Assam Asbestos Ltd. (2003) 263 ITR 357 (Gau) M/s Virgo iv) CIT Vs Rajaram Maize Products Ltd. 251 Heard on 3. ITA No.165/Gau/2004 Cements Ltd., ITR 427(SC) and 03.04.2012 24 A.Y.2001-2002 Gauwahati. v) Sdarda Plywood Industries Ltd. Vs.CIT 238 ITR 354(Cal). JAIPUR BENCH 1. ITA No. 110/JP/2012 Smt. Asha S/Shri Whether in the facts and circumstances of the Shri Heard on Mandowra,Jaipur. 1.R.K.Gupra, present case, the order of Ld. CIT(A) is liable G.D.Agarwal, 14.05.2013 JM. to be confirmed or liable to be restored to his Vice- 2.Sanjay Arora, file to pass a fresh order ? President(DZ) AM. 2. MA. No. 11/JP/2011 Shri Deepak S/Shri Whether in the facts and circumstances of the Shri Heard on (A.O.of ITA No. Delela,Jaipur. 1.R.K.Gupta, present case, the order of Tribunal in Misc. G.D.Agarwal, 14.05.2013 13/JP/10) JM. Application No.11/JP/2011 arising out of the Vice- 2.Sanjay Arora, order of the Tribunal in ITA No.13/JP/2010 President(DZ) AM. relating to Assessment Year 2006-07 is liable to be allowed by recalling the order of the Tribunal or to be dismissed.? 25