[unable to retrieve full-text content]INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES AHMEDABAD CONSTITUTION FOR THE WEEK FROM 29/07/2013 TO 08/08/2013 {ad} For more information...
Monday, 29 July 2013
BIOCON Biopharmaceuticals Pvt. Ltd vs. ITO (ITAT Bangalore)
S. 195(2) TDS: AO has no power to issue Nil TDS certificate The assessee entered into a Joint Venture agreement with CIMAB SA, Cuba, to set up a JVC in India. It was agreed that CIMAB would provide technology to the JVC in consideration for which it would be allotted 49% of the equity capital of the JVC. The assessee filed an application u/s 195(2) claiming that the technology was not chargeable to tax in India and that the shares should be permitted to be allotted without TDS. The AO passed an order u/s 195(2) in which he accepted the assessee’s contention that no TDS was required to be deducted on the allotment of shares. However, later the AO took the view that the allotment of shares in consideration of the technology transfer was chargeable to tax and that the assessee was in default u/s 195 & 201. This was upheld by the CIT(A). Before the Tribunal the following issues arose: (i) whether u/s 195(2) the AO has the jurisdiction to issue a certificate that no tax need be deducted at source, (ii) whether s. 195(1) applies where payment is made in kind and not in money terms & (iii) whether the consideration (in the form of shares) for technology transfer can be said to be “transfer of a capital asset” outside India so as to be exempt from tax? HELD by the Tribunal: (ii) The argument that s. 195(1) does not apply to a case where shares are allotted is not acceptable because the expression “any other sum chargeable under the provisions of the Act” in s. 195(1) has to be read in conjunction with the words “at the time of credit of such income …. in cash … or by any other mode”. Thus payment in terms of the money is not the only mode contemplated u/s 195(1) of the Act. The use of the expression “or by any other mode” makes the intention of the legislature clear that s. 195(1) applies even to cases where payment is made otherwise than by money. |
Stay order must be passed in writing and served to the assessee as per section 37C of Excise Act
ST : Any order directing party to make any pre-deposit should be in writing and has to be tendered as per provisions of section 37C of Central Excise Act, 1944, failing which, such order cannot be sustained
Step-by-step guide to file your income tax return online
ET provides a step-by-step guide to help you file tax returns electronically before the July 31 deadline using the official website of the I-T dept or private sites.
July 31, the last day to file income tax returns, is almost here. Sure, you can file returns even after that, but it comes with complications. So, don't count on it.
If you earn above Rs 5 lakh, you have to file returns electronically this year. That means you can file your returns even in the last two days from your home computer. You can seek the help of a professional or do it yourself by using the official website of the Income-Tax department or a host of private websites.
Before we proceed to how to use these portals effectively , let us address a major source of ambiguity this year regarding the applicability of forms ITR-1 and ITR-2 to salaried individuals or pensioners with one house property and interest income. Tax consultants are divided on the interpretation of new provision on exempt income , introduced this year.
According to this provision, those with exempt income exceeding Rs 5,000 cannot file their return using ITR-1 (Sahaj). While some feel that all salaried individuals who have tax-exempt income like House Rent Allowance (HRA), Leave Travel Allowance (LTA) and transport allowance have to use ITR-2 this year, others argue that they can continue to use the much simpler ITR-1 (Sahaj).
"My view is that the exempt income here refers to sources like dividends and not tax-free salary components like HRA and conveyance allowance," explains Divya Baweja, senior director at Deloitte in India. The Income-Tax department is yet to issue a clarification on the matter.
Using the official website
Before you start the process, keep your bank statements, Form 16 issued by your employer and a copy of last year's return at hand. Next, log on to www.incometaxindiaefiling .gov.in. Follow these steps:
Step1: Register yourself on the website. Your Permanent Account Number (PAN) will be your user ID.
Step2:View your tax credit statement — Form 26AS — for the financial year 2012-13 . The statement will reflect the taxes deducted by your employer actually deposited with the I-T department. The TDS as per your Form 16 must tally with the figures in Form 26AS. If you file the return despite discrepancies, if any, you could get a notice from the I-T department later.
Step 3: Under the 'Download' menu, click on Income Tax Return Forms and choose AY 2013-14 (for financial year 2012-13 ). Download the Income Tax Return (ITR) form applicable to you. If your exempt income exceeds Rs 5,000, the appropriate form will be ITR-2 . If the applicable form is ITR-1 or ITR 4S, you can complete the process on the portal itself, by using the 'Quick e-file ITR' link.
Sec. 11 exemption allowed to educational institution providing continuing education and diploma prog
IT: Sec. 11 exemption allowed to educational institution providing continuing education and diploma programs
Agreement for selling packaged drinking water isn’t anti-competitive if other players also exist in
Competition Act: Where informant had many options when it entered into franchise agreement with opposite party for selling packaged drinking water and soda, no case of abuse of dominance by opposite party was made out
Gold Imports Rise In July: Chidambaram
Gold imports in India, the world's biggest buyer of the metal, rose in July, Finance Minister P. Chidambaram said on Monday, from 31.5 tonnes shipped in June.
The measure to curb imports had effect in June, but imports had risen in July, said the finance minister, without giving details for the gold imports in tonnage or value terms for July.
Last week, India, which imported 304 tonnes of the yellow metal in April and May, tied the imports of the yellow metal for domestic consumption to exports.
Source:-in.reuters.com
Cotton Exports Decline 36% To 9.14M Bales In Aug-June
Jul 28 2013
Eactly when a study by Gherzi, a Zurich-based consultancy agency, has suggested that India’s competitiveness in the cotton textile sector had improved over the last decade against six rivals including China, Bangladesh and Thailand, the latest US Department of Agriculture (USDA) report points out that cotton exports from India have dropped by as much as 36 per cent to 9.14 million bales in the current marketing year’s first 11 months, ended June.
The cotton-marketing year runs from August to July. While the first report dwelt on the cotton textile sector and India’s increased competitiveness in areas like technology up-gradation and manufacturing costs and exports, the second talks about raw cotton.
The USDA’s preliminary estimates say cotton exports from India reached 9.1 million bales (one bale contains 170 kg of cotton) by end-June against 13.91 million bales in the August-June period of the 2011-12 marketing year. Around more or less the same time, another report, this one by the Organisation for Economic Co-operation and Development- Food and Agriculture Organisation (OECD-FAO), projected that India would replace China as the world's largest cotton producer by 2022 propelled by a higher output growth over the next decade.
This report said while China’s cotton production was expected to decline 17 per cent, India’s would go up by 25 per cent, making India the world’s largest producer of cotton. The report attributed this projected rise in production to increasing yields.
However, the growth rate of yield would be slower compared to the previous decade.
Significantly, cotton production in India, according to union agriculture ministry statistics, stood at 338 lakh bales in the 2012-13 crop year (July-June), which is marginally lower than the last year’s level of 353.75 lakh bales (Cotton Association of India figures).
Despite this marginal fall, production is expected to move up. Not just production, according to most studies, consumption too is expected to grow more in India than in any other country. As and when India replaces China as the largest cotton producer and emerges more competitive in cotton textile sector, the consumption will grow further.
One issue that keeps surfacing in the cotton sector is that of hoarding by a section of large traders, which in turn sends cotton prices up. Different stakeholders in the cotton sector keep taking up the issue with the centre, seeking release of stock by the Cotton Corporation of India to domestic mills. The Cotton Association of India, however, thinks that the rise in cotton prices in India in most cases is a reaction to higher cotton prices in the international market. If the price gap between international and domestic cotton narrows, that’s a good sign and that’s in the interest of the farmers, the CAI feels.
When there is good sowing activity and favourable weather, prices fall. Analysts and traders say sowing activity across the country’s cotton producing regions, including Gujarat, is now good. The weather too is behaving nicely. This may bring cotton prices down in the coming weeks
Source:-www.mydigitalfc.com
Rupee Opens Weak At 59.62 Per Dollar
The Indian rupee opened weak by 21 paise at 59.62 per dollar against 59.41 Monday. According to Jayesh Mehta, Bank of America, the rupee is expected to trade on a weaker note on RBI's hawkish comments
The Indian rupee opened weak by 21 paise at 59.62 per dollar against 59.41 Monday.
Jayesh Mehta, Bank of America said, "The rupee is expected to trade on a weaker note on RBI's hawkish comments. Key policy rates are likely to be unchanged in today's policy. The range for the day is seen between 59.40-59.70/USD."
The euro stays above 1.32 to the dollar. The dollar index was around 81.70 levels and the dollar yen was at 98 mark
Source:-www.moneycontrol.com
Textile Exports To Iran Set For A Rupee Push
July 29, 2013
Textile exporters have spotted an opportunity in the crisis in India-Iran trade caused by sanctions on the latter by the West. The textile industry is eyeing the rupee settlement mechanism between the two countries to push textile exports to Iran. D. K. Nair, Secretary General of the Confederation of Indian Textile Industry, says India’s payments to Iran for oil imports are kept in India in the rupee fund administered through UCO Bank (45 per cent of the payments for oil are made to the rupee account).
Textile and clothing buyers in Iran can open Letters of Credit against this fund after obtaining the required clearances from their government. Indian exporters will get the payment in Indian rupees from the bank account. And, there is no dearth of funds in this account, he says. In fact, rice exporters are already using the system.
In an initiative by the Union Ministry of Textiles, a delegation visited Iran in January-February this year, and a trade show was organised in Iran in May. The response to the trade show was encouraging and India’s textile exports to Iran are all set to increase. Nearly 60 textile and clothing exporters participated and are expected to realise business worth $22.5 million. “The impact of deeper engagement with Iran can translate into more than $100 million Indian textile exports to Iran,” says an official of the Ministry. The demand is more for cotton and manmade fibres and textile machinery.
Last financial year, India’s textile and clothing exports to Iran were nearly $108 million. However, Iran should reduce the import duty so that Indian products are competitive, Mr. Nair says.
Iran’s total annual exports to India are $11.5 billion, and India’s exports to Iran are worth about $3.3 billion. The official said that the adverse trade balance between India and Iran was one of the reasons for the special focus on Indian textiles exports to Iran.
Manickam Ramaswamy, Chairman, Cotton Textiles Export Promotion Council, says Iran can become an important market for Indian textile exporters. The exporter negotiates the order with the Iranian buyer in dollars, and also seeks the buyer’s consent to make the payment in rupee under the rupee payment mechanism.
According to Anil Rajvanshi, Vice-Chairman, Synthetic and Rayon Textiles Export Promotion Council, “It looks like Iran will be a big market for exporters of acrylic yarn and fibre, synthetic and manmade fibre and jute.” Since the rupee payment mechanism is a new mode of payment, there are initial hassles. But, “we need to look at the potential of the market.” For the Indian exporters, it will be risky to depend on the U.S and European markets, and they need to look at alternatives.
Source:-www.thehindu.com
Agreement for selling packaged drinking water ins’t anti-competitive if other players also exist in
Competition Act: Where informant had many options when it entered into franchise agreement with opposite party for selling packaged drinking water and soda, no case of abuse of dominance by opposite party was made out
DRP to assign reasons before adjudicating claim of assessee; ITAT sets aside non-speaking order of D
IT/ILT: It is obligatory for DRP, a quasi-judicial authority, to ascribe cogent and germane reasons for its order
Unjust enrichment won’t target refund of service tax paid during investigation stage
ST: Where assessee has deposited demand during investigation stage and contested issue before higher judicial for a including Tribunal, principle of unjust enrichment is inapplicable to refund of such 'deposit' made
No reassessment merely on the basis of statement recorded during survey, unless its authenticity is
IT : In absence of any independent material, statement of assessee's son recorded during survey would not form a valid basis for reopening assessment of assessee
No addition under sec. 68 in respect of jewellery admitted under voluntary disclosure of income sche
IT : Where possession of requisite jewellery by assessee was accepted under VDIS and same was sold through valid channel, no addition could be made in hands of assessee in case of search of purchaser
Reassessment couldn’t be deemed as change of opinion if original assessment was made without applica
IT : Since there is no application of mind in section 143(1) assessment, reopening of such assessment for disallowing expenditure previously allowed, is not mere change of opinion, and is valid
Third Proviso to sec. 194H has retro effect
IT: BSNL was not required to deduct tax at source under section 194H pertaining to assessment years prior to insertion of third proviso to section 194H with effect from 1-6-2007 as said amendment is a clarificatory amendment and would be applicable even in respect of assessment years prior to insertion of said amendment
Services of veterinary surgeons are exempt from service tax
ST/ECJ : Activities carried out by veterinary surgeons in exercise of their profession amount to provision of services; but, they are exempt from service tax
Conditions for claiming sec. 80-IB deduction to be complied with on yearly basis and not in initial
IT : Where deduction was claimed under section 80-IB as a small scale industrial undertaking, conditions prescribed for qualifying as a small scale industry must be fulfilled on year to year basis
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