Comparables with distant relation with the products sold by assessee to be excluded from TP study

IT/ILT: Where products of comparable companies did not have even a distant relation to products sold out by assessee company, those companies could not be accepted as comparables

Mill Owners Seek To Import 0.5 Million Tons Of Wheat From India

The flour mill owners have requested the federal government to allow them to import up to 500,000 tons of wheat from India to meet the exports of the wheat by-products, it is learnt. According to reliable sources in the Ministry of National Food Security and Research (MNSFR) the request was made by a delegation of the All Pakistan Flour Mills Association (APFMA) in a recent held meeting with Sikandar Hayat Khan Bosan Federal Minister for MNSFR.



"APFMA has sought permission to import wheat from India up to 0.5 million tons, saying that local wheat prices were much higher and exporting the by-products of local wheat is no more profitable for the flour mills", the official maintained. The official on a query said that the wheat flour is exempted from General Sales tax (GST) and, therefore, increase in commodity price in the name of GST is out of the question.



When contacted Asim Raza Ahmed a senior representative of APFMA said a formal request has been made to the government to allow import of Indian wheat. He said that the government should immediately allow the mill owners to import Indian wheat which at Wagah border will cost Rs 1,120 per 40 kg, while local wheat costs Rs 1,250 per 40 kg.



After the arrival of new wheat crop in March the Punjab government stopped wheat supply to the mills, and the mills purchased wheat from the open market at new minimum support price of Rs 1,250 per 40 kg set by the federal government; as a consequence of higher wheat price flour price registered an increase of Rs 7 per kg or 280 per 40 kg from March onwards, he added.



At present, wheat price is the highest in Pakistan owing to high input cost and the country is losing markets abroad including United Arab Emirates (UAE), Afghanistan and many African countries, while Pakistani flour mills are exporting huge quantity of wheat by-products.



"At present per quintal wheat in the open market is being sold at Rs 3,250 and if transportation cost etc is added the price goes up to Rs 3,450 per quintal and if we include grinding cost of one kg flour it costs us at Rs 37 per kg, The market price is Rs 39 per kg", the official said. The government from 2008 to 2013 increased the wheat support price from Rs 600 per 40 kg to Rs 1250 per 40 kg, due to which the farmers across the country brought more land under wheat cultivation, however, the cost to the consumers rose commensurately.

Source:-www.brecorder.com

Rupee Up 29 Paise Vs Dollar In Early Trade

The rupee today rose by 29 paise to 59.23 in early trade at the Interbank Foreign Exchange market on dollar selling by exporters, after the government assured it is "committed to containing the fiscal deficit" within target and is addressing how to finance CAD.



Strengthening of the euro and yen against the dollar overseas also supported the rupee, forex dealers said.



The rupee had lost 13 paise to close at 59.52 in the previous session as fag-end demand for the US currency from some banks and importers.



Finance Minister P Chidambaram in an interview to PTI yesterday said, "sentiment will turn in favour" of the rupee as government is "committed to containing the fiscal deficit" within target and is addressing how to finance CAD.



Meanwhile, the BSE benchmark Sensex fell by 48.08 points, or 0.24 per cent, to 19,529.31 in early trade today.

Source:-newindianexpress.com

Pmi Data Suggest Uptick In India's Exports

1-Jul-2013

The latest manufacturing purchasing manager's index (PMI) data suggest the rupee depreciation is working its magic on India's manufacturing exports. PMI for new export order rose to 54.4 in June 2013 from 54.04 in May and 51.1 in March this year. The export PMI is now higher than the long-term average at 54.1. This has raised the prospects of a revival in India's merchandise exports and a fall in the trade deficit by the end of the current financial year.



"The rise in the export PMI is a positive indicator for the India's manufacturing export and you can see some uptick in exports in the near term. This would have a positive impact on India's current account deficit (CAD) for FY14 but it will not be big enough to blow away our balance of payment problems," says Sonal Verma, India Economist at Nomura India. According to her, India's export is demand-driven and depends on demand conditions in the destination country; it is only marginally impacted by currency movements.



Some analysts have begun to factor in faster export growth while modelling India's balance of payment for the current financial year. "For FY14, as a whole, we expect the CAD to be around four per cent of GDP against 4.8 per cent last year, on the back of export recovery and some decline in gold imports," say analysts led by Kapil Gupta at Edelweiss Securities, in a recent report.



While consumers and manufactures will take time to tweak their shopping and sourcing behaviour in response to the fall in the value of the rupee, the impact is already visible in price-sensitive sectors such as automobile parts and textiles. Textile makers report a similar trend but gains for some companies have been capped due to long-term sourcing agreements with large overseas buyers.



Historically, manufacturing exports have shown sensitivity to rupee depreciation. In the early 1990s, rupee depreciation was repeatedly used by the government to tame India's CAD that had triggered the 1991 economic crisis. The market-determined depreciation in the rupee seems to be playing a similar role this time and this is what the latest PMI data seem to indicate. This process is likely to play out for at least a few more quarters.

Source:-www.business-standard.com

Eighty Percent Of Essar Ports Earnings Will Be In Dollars: Ceo

1-Jul-2013

Essar Ports, India's second-largest private sector port and terminal operator, has said it is moving towards a system where almost all its customers will pay it in US dollars. The company has recently begun the process of migrating to a dollar tariff structure, its chief executive Rajiv Agarwal said in an interview.



"Some of the customers we are working for have income in dollars. They have a dollar balance sheet. Because the pricing is dollar denominated, for example, steel," Agarwal said. "Customers will have to pay tariff in dollars, which will then be converted into rupees at the prevailing exchange rate. So if the rupee becomes 65 to the dollar, then I get 65 rupees, if it is 55, I get 55."



Essar Ports started charging in dollars at its Salaya port a while back. "Eighty percent of total earnings will be in dollars," Agarwal said.



Essar will be the second port operator after Gujarat Pipavav shipyards to start moving away from rupees while charging tariff. The company, which operates terminals at Vadinar, Hazira, Salaya and Paradip among others, mostly handles coal and bulk cargo imports apart from container traffic.



India's container cargo industry has been going through a spell of privatization of late, with international companies including Maersk and DP World setting up shop in India. This traffic has grown at an average rate of 13.27 per cent per year at India's major ports. Globally, container traffic has grown at around 10 per cent over the last 20 years.



The development also comes at a time when India's rupee has plunged to a record low against the US dollar. Last week, even exporters in India rang alarm bells about the rupee.



The Federation of Indian Export Organisation (FIEO) in a statement last week urged India's exporters to use derivatives as a hedge to combat rupee volatility. Charging tariff in dollars will create a natural hedge for Essar Ports, Agarwal said.



The Essar Ports stock has lost 19.64 per cent, falling from Rs 89.1 to Rs 71.6 in the last three months on the Bombay Stock Exchange. The company declared net profit of Rs 331.6 crore on revenues of Rs 1,434.6 crore in FY13.

Source:-businesstoday.intoday.in

Gems, Jewellery Exports Decline 16.5% In May

1-Jul-2013

NEW DELHI: Gems and jewellery exports declined 16.5 per cent year-on-year to USD 2.70 billion in May due to a weak demand from western markets, an industry body said today.



In May 2012, these exports stood at USD 3.24 billion, according to the data by the Gems and Jewellery Export Promotion Council (GJEPC).



The gems and jewellery exports in May were also lower compared to the previous month when the exports were at USD 3.38 billion, a robust 33 per cent growth over the year ago period.



"The exporters are getting less number of orders from western markets, including Europe," a GJEPC official said.



The US, the UAE, Europe and Hong Kong are among the major export destinations for gems and jewellery items.



Shipments of gold medallions and coins nosedived by 95.7 per cent while that of gold jewellery by 61.4 per cent.



During 2012-13, the gems and jewellery exports declined by 9.4 per cent year-on-year to USD 39 billion due to sluggish demand in traditional markets.



However, the council feels that in 2013-14 these exports would grow between 10 per cent and 15 per cent compared to the last fiscal.

Source:-economictimes.indiatimes.com

Comparables with high turnover, related party transactions and functional disparities excluded for T

IT/ILT: Where TPO made certain addition to assessee's ALP on basis of fresh set of comparables, in view of fact that some of those comparables could not be selected on account of functional difference, turnover filter and related party transactions and, after excluding said comparables margin earned by assessee came with in ± 5 percent limit as mentioned under proviso to section 92C(2), impugned adjustment was to be set aside

Transfer of rights in a leasehold property can’t be treated as ‘adventure in nature of trade’

IT : Transaction of sale of property cannot be treated as adventure in nature of trade, if intention was to hold property and utilise it for different purpose

Interest on NPA not to be taxed on accrual basis when sec. 43D allows recognition of same on cash ba

IT : Interest on NPAs cannot be included in income of a co-operative banking society on accrual basis

Tribunal considered ‘recession’ a reasonable cause; penalty waived for delay in payment due to slow

ST : Slow down in realty sector in realty sector is a 'reasonable cause' for delay in payment of service tax and penalty levied under section 76 was to be waived invoking provisions of section 80

THE COMMISSIONER OF INCOME TAX DELHI CENTRAL-III Vs. NIRMAL BANSAL

THE HIGH COURT OF DELHI AT NEW DELHI % Judgment delivered on: 30.04.2013 + ITA 198/2013 THE COMMISSIONER OF INCOME TAX, DELHI CENTRAL-III ... Appellant versus NIRMAL BANSAL ... Respondent AND + ITA 203/2013 THE COMMISSIONER OF INCOME TAX, DELHI CENTRAL-III ... Appellant versus MANJU BANSAL ... Respondent AND + ITA 204/2013 THE COMMISSIONER OF INCOME TAX, DELHI CENTRAL-III ... Appellant versus NIRMAL BANSAL ... Respondent AND ITA Nos.198/13,203/13,204/13&205/13 Page 1 of 7 + ITA 205/2013 THE COMMISSIONER OF INCOME TAX, DELHI CENTRAL-III ... Appellant versus MANJU BANSAL ... Respondent Advocates who appeared in this case: For the Appellant : Mr Sanjiv Sabharwal For the Respondent : None CORAM:- HON'BLE MR JUSTICE BADAR DURREZ AHMED HON'BLE MR JUSTICE VIBHU BAKHRU JUDGMENT BADAR DURREZ AHMED, J (ORAL) CM No. 5523/2013 in ITA No. 198/2013 CM No. 5527/2013 in ITA No. 203/2013 CM No. 5528/2013 in ITA No. 205/2013 Exemption is allowed subject to all just exceptions. ITA Nos. 198/2013, 203/2013, 204/2013 & 205/2013 1. These four appeals seek to raise common issues and are directed against the common order passed by the Income Tax Appellate Tribunal, New Delhi, on 31.01.2012 in ITA Nos. 5304-5307/Del/2011 pertaining to the assessment years 2008-09 and 2009-10. Two appeals are in respect of the assessee Smt. Manju Bansal and the other two are in respect of the assessee Smt. Nirmal Bansal. ITA Nos.198/13,203/13,204/13&205/13 Page 2 of 7 2. Mr Sabharwal, the learned counsel appearing on behalf of the appellant / revenue submitted that the Tribunal had misdirected itself in law in not considering the question as to whether the land was agricultural in nature or not. He submitted that the issue before the Tribunal was with regard to the addition of Rs. 2,34,70,697/- which had been made by the assessing officer on account of short term capital gain in respect of sale of different plots of land at village Hayatpur, district Gurgaon, by the respondent/assessee. The Commissioner of Income Tax (Appeals), had deleted the said addition. It may be pointed out that in the assessing officer's order the only reason as to why the assessing officer had not granted the exemption to the respondents on account of the provisions of section 2 (14)(iii) of the Income-tax Act, 1961, was because the assessing officer had taken the view that the possibility of there being some other `shortest distance' between the area where the plots of land were situated and the municipal limits of Gurgaon so as to rule out the possibility that the lands were situated beyond 8 kms from the municipal limits. The assessing officer had arrived at the above conclusion in the following manner:- "3. During the year the assessee has sold land at village Harsaru / Hayatpur, Distt Gurgaon for a sum of Rs.2,97,94,502/-. The assessee has claimed that the capital gain from the sale proceeds of the land is exempt because the land is situated at a distance of more than 08 kms from the outer municipal limits of Gurgaon. In support of his contention the assessee has furnished from Revenue authorities which is Tehsildar of Gurgaon wherein he has certified that the land whose particulars are given in the sale deed of the assessee is at a distance of 09 kms. Further inquiries in this regard was made from the District Town Planner of Gurgaon wherein he was asked to specify the distance of the land from the outer limits of Gurgaon Municipal Committee. The District Town Planner, ITA Nos.198/13,203/13,204/13&205/13 Page 3 of 7 Gurgaon vide letter memo no.70954 dated 21-12-2010 has intimated this office that the distance of the land from the outer limits of the Municipal Committee of Gurgaon was 8.5 kms on the date of sale. The distance given by District Town Planner, Gurgaon is very narrow as compared to the distance mentioned in the Act. In these circumstances the possibility of any other shortest distance cannot be ruled out and the land sold by the assessee during the year is taken as "Capital Asset" within the meaning of 2(14) of Income Tax Act, 1961 and the profit thereof is treated as short term capital gain. Addition of Rs.2,97,94,502/- is hereby made as short term capital gain." 3. The Commissioner of Income Tax (Appeals), after considering the assessment orders and the submissions of the respondent's / assessee's observed that the assessees, during the course of assessment proceedings had submitted a certificate issued by the Tehsildar, Gurgaon to the effect that the plots of land were situated at a distance of about 9 kms from the outer municipal limits of Gurgaon. The district town planner, Gurgaon by a letter dated 21.12.2010 had also indicated that the distance of the said plots of the land was about 8.5 kms from the outer municipal limits of Gurgaon. The Commissioner of Income Tax (Appeals), thus held that two competent authorities, namely, the Tehsildar, Gurgaon and the District and Town Planner, Gurgaon had both, independently certified that the lands in question were situated beyond 8 kms of the municipal limits of Gurgaon. Consequently, the Commissioner of Income Tax (Appeals) held that the observation of the assessing officer that there was a possibility of some other shorter distance was not based on any hard evidence. It was also concluded by him that such an apprehension on the part of the assessing officer could not form the basis of denial of the assessees' claims. ITA Nos.198/13,203/13,204/13&205/13 Page 4 of 7 Consequently, the Commissioner of Income Tax (Appeals) deleted the addition of Rs. 2,97,94,502/-. 4. The Income Tax Appellate Tribunal dismissed the appeals filed by the revenue and upheld the deletion made by the Commissioner of Income Tax (Appeals). The Tribunal held that the view taken by the CIT (Appeals) that the lands in question were situated beyond 8 kms from the outer limits of the municipal corporation of Gurgaon, could not be faulted. 5. The learned counsel for the revenue contended before us that the departmental representative had also raised the issue that the lands in question were not agricultural lands at all and that aspect of the matter had not been gone into by the Tribunal. He submitted that in order that the profits from sale of land are not subjected to capital gains tax, it has to be established that the lands in question were agricultural lands and that such lands were not situated within 8 kms of the municipal limits. He submitted that question of ascertaining whether the land was situated within 8 kms or beyond 8 kms was only the second condition. The first condition being that the land should have been agricultural. Mr Sabharwal submitted that while the departmental representative had raised the issue with regard to the lands not being agricultural in nature, the Tribunal had not gone into this aspect of the matter at all and, therefore, to that extent the twin conditions stipulated in section 2(14)(iii) had not been satisfied. 6. We have examined the decision of the Tribunal and we find that while Mr Sabharwal is right that the departmental representatives had raised the issue about the nature of the land in question, the Tribunal has ITA Nos.198/13,203/13,204/13&205/13 Page 5 of 7 correctly dealt with this aspect of the matter. The Tribunal noted that the assessing officer had made the disallowance merely on the ground that there was the possibility of a shorter distance, which would be less than 8 kms from the outer limits of the municipal corporation. The Tribunal noted that the assessing officer had not doubted the nature of the land being for agriculture. It is in these circumstances that the Tribunal rejected the plea of the departmental representative that the matter be restored to the file of the CIT (Appeals) for verification of the fact as to whether the lands were agricultural in nature or not. 7. Mr Sabharwal had also placed reliance on the Supreme Court decision in the case of National Thermal Power Corporation Limited v. CIT: 229 ITR 383 (SC). He had relied on the said decision to canvas the proposition that the Tribunal could very well have examined the question of nature of the lands even though it had not been in issue before the lower authority. However, we find that the decision in NTPC Ltd. (supra) would be of no assistance to the revenue. In the said decision it has been clearly noted that the Tribunal had jurisdiction to examine a question of law which "arose from the facts as found by the Income Tax Authorities" and which had a bearing on the tax liability of the assessee. The point to be noted is that the question of law which could be raised before the Tribunal would have to arise from the facts as found by the income-tax authorities. In other words, there must be some factual basis on which the question of law is raised before the Tribunal. The relevant facts must be on record. In the present case the assessing officer had not doubted the fact that the lands in question were agricultural in nature. There is no foundational fact that the ITA Nos.198/13,203/13,204/13&205/13 Page 6 of 7 lands were not agricultural in nature. As such the plea raised by the departmental representative before the Tribunal could not be gone into by the Tribunal as there was no foundational basis for the same. Clearly, the decision in NTPC Ltd. (supra) would be of no avail to the revenue in the facts of the present case. 8. In view of the foregoing, no interference is called for with the impugned order of the Tribunal. In any event no substantial question of law arises for the consideration of this court. 9. The appeals are dismissed. BADAR DURREZ AHMED, J VIBHU BAKHRU, J April 30, 2013 kb ITA Nos.198/13,203/13,204/13&205/13 Page 7 of 7

THE COMMISSIONER OF INCOME TAX DELHI CENTRAL-III Vs. MANJU BANSAL

THE HIGH COURT OF DELHI AT NEW DELHI % Judgment delivered on: 30.04.2013 + ITA 198/2013 THE COMMISSIONER OF INCOME TAX, DELHI CENTRAL-III ... Appellant versus NIRMAL BANSAL ... Respondent AND + ITA 203/2013 THE COMMISSIONER OF INCOME TAX, DELHI CENTRAL-III ... Appellant versus MANJU BANSAL ... Respondent AND + ITA 204/2013 THE COMMISSIONER OF INCOME TAX, DELHI CENTRAL-III ... Appellant versus NIRMAL BANSAL ... Respondent AND ITA Nos.198/13,203/13,204/13&205/13 Page 1 of 7 + ITA 205/2013 THE COMMISSIONER OF INCOME TAX, DELHI CENTRAL-III ... Appellant versus MANJU BANSAL ... Respondent Advocates who appeared in this case: For the Appellant : Mr Sanjiv Sabharwal For the Respondent : None CORAM:- HON'BLE MR JUSTICE BADAR DURREZ AHMED HON'BLE MR JUSTICE VIBHU BAKHRU JUDGMENT BADAR DURREZ AHMED, J (ORAL) CM No. 5523/2013 in ITA No. 198/2013 CM No. 5527/2013 in ITA No. 203/2013 CM No. 5528/2013 in ITA No. 205/2013 Exemption is allowed subject to all just exceptions. ITA Nos. 198/2013, 203/2013, 204/2013 & 205/2013 1. These four appeals seek to raise common issues and are directed against the common order passed by the Income Tax Appellate Tribunal, New Delhi, on 31.01.2012 in ITA Nos. 5304-5307/Del/2011 pertaining to the assessment years 2008-09 and 2009-10. Two appeals are in respect of the assessee Smt. Manju Bansal and the other two are in respect of the assessee Smt. Nirmal Bansal. ITA Nos.198/13,203/13,204/13&205/13 Page 2 of 7 2. Mr Sabharwal, the learned counsel appearing on behalf of the appellant / revenue submitted that the Tribunal had misdirected itself in law in not considering the question as to whether the land was agricultural in nature or not. He submitted that the issue before the Tribunal was with regard to the addition of Rs. 2,34,70,697/- which had been made by the assessing officer on account of short term capital gain in respect of sale of different plots of land at village Hayatpur, district Gurgaon, by the respondent/assessee. The Commissioner of Income Tax (Appeals), had deleted the said addition. It may be pointed out that in the assessing officer's order the only reason as to why the assessing officer had not granted the exemption to the respondents on account of the provisions of section 2 (14)(iii) of the Income-tax Act, 1961, was because the assessing officer had taken the view that the possibility of there being some other `shortest distance' between the area where the plots of land were situated and the municipal limits of Gurgaon so as to rule out the possibility that the lands were situated beyond 8 kms from the municipal limits. The assessing officer had arrived at the above conclusion in the following manner:- "3. During the year the assessee has sold land at village Harsaru / Hayatpur, Distt Gurgaon for a sum of Rs.2,97,94,502/-. The assessee has claimed that the capital gain from the sale proceeds of the land is exempt because the land is situated at a distance of more than 08 kms from the outer municipal limits of Gurgaon. In support of his contention the assessee has furnished from Revenue authorities which is Tehsildar of Gurgaon wherein he has certified that the land whose particulars are given in the sale deed of the assessee is at a distance of 09 kms. Further inquiries in this regard was made from the District Town Planner of Gurgaon wherein he was asked to specify the distance of the land from the outer limits of Gurgaon Municipal Committee. The District Town Planner, ITA Nos.198/13,203/13,204/13&205/13 Page 3 of 7 Gurgaon vide letter memo no.70954 dated 21-12-2010 has intimated this office that the distance of the land from the outer limits of the Municipal Committee of Gurgaon was 8.5 kms on the date of sale. The distance given by District Town Planner, Gurgaon is very narrow as compared to the distance mentioned in the Act. In these circumstances the possibility of any other shortest distance cannot be ruled out and the land sold by the assessee during the year is taken as "Capital Asset" within the meaning of 2(14) of Income Tax Act, 1961 and the profit thereof is treated as short term capital gain. Addition of Rs.2,97,94,502/- is hereby made as short term capital gain." 3. The Commissioner of Income Tax (Appeals), after considering the assessment orders and the submissions of the respondent's / assessee's observed that the assessees, during the course of assessment proceedings had submitted a certificate issued by the Tehsildar, Gurgaon to the effect that the plots of land were situated at a distance of about 9 kms from the outer municipal limits of Gurgaon. The district town planner, Gurgaon by a letter dated 21.12.2010 had also indicated that the distance of the said plots of the land was about 8.5 kms from the outer municipal limits of Gurgaon. The Commissioner of Income Tax (Appeals), thus held that two competent authorities, namely, the Tehsildar, Gurgaon and the District and Town Planner, Gurgaon had both, independently certified that the lands in question were situated beyond 8 kms of the municipal limits of Gurgaon. Consequently, the Commissioner of Income Tax (Appeals) held that the observation of the assessing officer that there was a possibility of some other shorter distance was not based on any hard evidence. It was also concluded by him that such an apprehension on the part of the assessing officer could not form the basis of denial of the assessees' claims. ITA Nos.198/13,203/13,204/13&205/13 Page 4 of 7 Consequently, the Commissioner of Income Tax (Appeals) deleted the addition of Rs. 2,97,94,502/-. 4. The Income Tax Appellate Tribunal dismissed the appeals filed by the revenue and upheld the deletion made by the Commissioner of Income Tax (Appeals). The Tribunal held that the view taken by the CIT (Appeals) that the lands in question were situated beyond 8 kms from the outer limits of the municipal corporation of Gurgaon, could not be faulted. 5. The learned counsel for the revenue contended before us that the departmental representative had also raised the issue that the lands in question were not agricultural lands at all and that aspect of the matter had not been gone into by the Tribunal. He submitted that in order that the profits from sale of land are not subjected to capital gains tax, it has to be established that the lands in question were agricultural lands and that such lands were not situated within 8 kms of the municipal limits. He submitted that question of ascertaining whether the land was situated within 8 kms or beyond 8 kms was only the second condition. The first condition being that the land should have been agricultural. Mr Sabharwal submitted that while the departmental representative had raised the issue with regard to the lands not being agricultural in nature, the Tribunal had not gone into this aspect of the matter at all and, therefore, to that extent the twin conditions stipulated in section 2(14)(iii) had not been satisfied. 6. We have examined the decision of the Tribunal and we find that while Mr Sabharwal is right that the departmental representatives had raised the issue about the nature of the land in question, the Tribunal has ITA Nos.198/13,203/13,204/13&205/13 Page 5 of 7 correctly dealt with this aspect of the matter. The Tribunal noted that the assessing officer had made the disallowance merely on the ground that there was the possibility of a shorter distance, which would be less than 8 kms from the outer limits of the municipal corporation. The Tribunal noted that the assessing officer had not doubted the nature of the land being for agriculture. It is in these circumstances that the Tribunal rejected the plea of the departmental representative that the matter be restored to the file of the CIT (Appeals) for verification of the fact as to whether the lands were agricultural in nature or not. 7. Mr Sabharwal had also placed reliance on the Supreme Court decision in the case of National Thermal Power Corporation Limited v. CIT: 229 ITR 383 (SC). He had relied on the said decision to canvas the proposition that the Tribunal could very well have examined the question of nature of the lands even though it had not been in issue before the lower authority. However, we find that the decision in NTPC Ltd. (supra) would be of no assistance to the revenue. In the said decision it has been clearly noted that the Tribunal had jurisdiction to examine a question of law which "arose from the facts as found by the Income Tax Authorities" and which had a bearing on the tax liability of the assessee. The point to be noted is that the question of law which could be raised before the Tribunal would have to arise from the facts as found by the income-tax authorities. In other words, there must be some factual basis on which the question of law is raised before the Tribunal. The relevant facts must be on record. In the present case the assessing officer had not doubted the fact that the lands in question were agricultural in nature. There is no foundational fact that the ITA Nos.198/13,203/13,204/13&205/13 Page 6 of 7 lands were not agricultural in nature. As such the plea raised by the departmental representative before the Tribunal could not be gone into by the Tribunal as there was no foundational basis for the same. Clearly, the decision in NTPC Ltd. (supra) would be of no avail to the revenue in the facts of the present case. 8. In view of the foregoing, no interference is called for with the impugned order of the Tribunal. In any event no substantial question of law arises for the consideration of this court. 9. The appeals are dismissed. BADAR DURREZ AHMED, J VIBHU BAKHRU, J April 30, 2013 kb ITA Nos.198/13,203/13,204/13&205/13 Page 7 of 7

Customs Circular No 25/2013 dated 01-07-2013

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise & Customs

Circular No.25 /2013 - Customs

Room No.253-A, North Block,

New Delhi the 1^st July, 2013.

To,

All Chief Commissioners of Customs,

All Chief Commissioners of Customs (Preventive),

All Chief Commissioners of C.Ex. , Customs & S.Tax.

All Director Generals.

Sir/Madam,

Subject: Import of Pets under Baggage – reg.

Attention is invited to Board’s Circular No. 15/2013 - Customs dated 08.04.2013 on the above cited subject.

2. Board has received several representations regarding problems being faced in re-import of pets at airports. In this regard the undersigned is directed to inform that re-import of pets is not covered by Circular No. 15/2013 - Customs dated 08.04.2013 . Therefore, it is clarified that re-import of pets as baggage is allowed subject to establishment of identity of pets by Customs authorities, production of the required health certificate from the country of export and examination of said pets by the concerned Quarantine Officer at this end.


3. These instructions may be brought to the notice of the trade / airlines / carriers by issuing suitable Trade / Public Notices. Suitable Standing orders/instructions may be issued for the guidance of the field officers.


4. Difficulties faced, if any, may be brought to the notice of the Board immediately.

Yours faithfully,

(A.K. Goel)

STO (TU)

F. No. 495/16/2012-Cus.VI

Retraction of statement can’t shield assessee unless it is supported by documents

IT : Where assessee, in course of survey, admitted that certain amount written on loose papers represented its income, in case of subsequent retraction from said statement, onus on assessee was heavy to show as to what mistake of fact resulted in admission of income and, thus, mere denial, without anything more, would by itself not lead to a valid retraction in law

Power of rectification can’t be exercised for reviewing an order on pretext of correcting an apparen

IT : Since power of rectification cannot be exercised to review an order, rectification by Tribunal of its own order, which does not suffer from ambiguity or uncertainty, is not permissible

If discount is received on goods against provision of services, value of service equivalent to disco

ST/ECJ : Where wholesale price of product is reduced by a specific amount in exchange for supply of such services, value of service must be regarded as being equal to difference between price actually paid for that product and its normal wholesale price

Circular No. 2 is withdrawn to curb an impression that PSM is most appropriate method in case of int

IT/ILT : Section 92C of the Income-Tax Act, 1961 - Read With Rule 10B of the Income-Tax Rules, 1962 - Transfer Pricing - Compution of Arm's Length Price - Application of Profit Split Method - Withdrawal of Circular No. 2/2013, Dated 26-3-2013

TP Circular No. 3 on identification of development centres is amended

IT/ILT : Section 92C of the Income-Tax Act, 1961 - Transfer Pricing - Computation of Arm's Length Price - Clarifications on Functional Profile of Development Centers Engaged in Contract R&D Services with Insignificant Risk - Conditions Relevant to Identify Such Development Centers - Amendment of Circular No. 3/2013, Dated 26-3-2013

TP circular on application of PSM is rescinded; circular on identification of development centres am

IT/ILT : Withdrawal/Amendment of - Circulars on Transfer Pricing

TP circular on application of PSM method rescinded; circular on identification of development centre

IT/ILT : Withdrawal/Amendment of - Circulars on Transfer Pricing

If loan taken by assessee was fully accounted and explained it couldn't be held as undisclosed

IT: Where loan taken by assessee was fully accounted for, it could not be held as undisclosed income

Cumulative conditions of processing and plantation of tea to be complied with for sec. 80-IC relief

IT : Until and unless assessee complied with both conditions of processing and raising of plantation of tea, deduction under section 80-IC(2)(b) cannot be allowed

All you want to know about mirror wills

For most people, marriage is not only a romantic union, but also a financial one. It is not uncommon to come across couples holding bank accounts, property and other investments jointly. If such couples are interested in succession planning, they would do well to consider a unique kind of will known as a mirror will.

What is it?

As the name suggests, mirror wills are two separate wills that are drafted exactly like each other, with just the name of testator— the person who is making the will—being different on both documents. In this case, the spouses can bequeath property to each other after death. In the absence of a surviving spouse, all the assets mentioned in the will are passed on to their children or any other beneficiary who has been named in the will.

Since the contents of both wills are the same, lawyers give a discount of up to 50% for drafting them. Though a very popular concept in Western countries, the idea of mirror wills is yet to pick up pace in India.

"Not many people are aware that they can opt for a mirror will, which is a cost-effective option for couples who hold property jointly," says Sandeep Nerlekar, CEO, Terentia Consulting Group.

How is it different from a joint will?

Some may believe that a joint will is the best solution in such cases. However, experts opine that joint wills can be complicated to draft and execute and, hence, should be avoided. For the uninitiated, a joint will is a single document, wherein two or more persons agree to bequeath property as a team.

So, it is actually multiple wills in one document. Such wills are revocable at any time by any of the testators during their lives. Any surviving testators, too, are free to revoke it. On the death of the testator, the legatee becomes entitled to the properties of the deceased.

Keep in mind

If you are interested in drafting a mirror will, you need not be concerned about the legalese. While the couple's wills would be exact replicas of each other in terms of bequests, executors and guardians, there is no legal rule mandating that the wills be drafted in exactly the same words. What is essential is the common intention to bequeath property to the spouse after death.

In such wills, spouses appoint each other as executors of the will. An executor is a person who carries out the wishes of the person drafting the will as per his intentions. As a safety measure, you must appoint an 'extra' executor. So, in the event of the simultaneous death of the husband and wife, there should be a third person who can act as the executor of the wills.

If you have minor children, you should also appoint a guardian to look after them in the mirror will. Experts recommend appointing at least two so that there is someone to look after the children if one of the guardians passes away.