IT: where assessment was completed without expressing any opinion regarding donation disclosed by assessee-trust, subsequent reopening on ground of donor's incapacity to pay, would be valid
Thursday, 29 August 2013
Assessee can't ask to reopen or reargue whole matter in garb of rectification application
IT: In garb of an application for rectification under section 254(2), assessee cannot be permitted to reopen and reargue whole matter as same is beyond scope of section 254(2)
No sec. 10(23C) relief if assessee hadn’t applied its income for charitable purposes
IT: Merely because there is an exemption order under section 10(23C), assessee is not entitled to exemption unless he satisfies conditions subject to which said exemption is granted
Receipts of Thai company from rendition of support services to Indian consultancy co. is not FTS
IT/ILT: Where assessee-company, a resident of Thailand, provided data, information and other support services to its Indian counterpart so as to enable it to render strategic consultancy services, amount received by assessee for providing said services was to be regarded as "business profits" within meaning of article 7 of India-Thailand DTAA and in absence of assessee's PE in India, said amount could not be brought to tax in India
Court can't interfere with a decision of one of the parties to contract with Govt. of India on basis
CL : In case of Production Sharing Contract (PSC) entered into between Government of India, ONGC (a Government undertaking) and private parties in respect of exploration and exploitation of crude oil and natural gas, if there is transfer of interest between parties in normal course of their business, Court can not interfere in said decision by merely placing reliance on CAG's report
Rupee Down 75 Paise Against Dollar In Early Trade
The rupee on Friday fell by 75 paise to 67.30 against the dollar in early trade, after Thursday’s strong recovery, at the Interbank Foreign Exchange market on month-end dollar demand from importers amid strengthening of the U.S. currency overseas.
Forex dealers said besides dollar gaining against other currencies in the global markets on upbeat U.S. economic growth data, a lower opening in the domestic equity market also put pressure on the rupee.
The rupee had gained 225 paise to 66.55 against the dollar, the most in at least 15 years in Thursday’s trade, after the Reserve Bank of India eased pressure in the currency market by starting a facility for state-run oil refiners to buy foreign exchange.
Meanwhile, the BSE benchmark Sensex fell by 71.68 points, or 0.39 per cent, to 18,329.46 in early trade on Friday.
Source:-www.thehindu.com
Wheat Exports From India Seen Climbing On Record Plunge In Rupee
29-Aug-2013
India, the world’s second largest wheat producer, may resume exports after a gap of three months as a slump in the nation’s currency to a record lowers costs for importers from South Asia to the Middle East.
“Private traders may ship about 1 million metric tonnes by March,” said Tejinder Narang, an adviser with Emmsons International Ltd., a New Delhi-based exporter. “Sales may increase further if the government cuts the export price of grains from its stockpiles,” he said.
Resumption of Indian exports may add to global supplies and pressure prices in Chicago that have fallen 27% in the past year on prospects for the biggest crop ever. The rupee tumbled 19% this year, boosting export potential of everything from rice to wheat to sugar and cotton, while increasing costs for imports of gold and crude oil. “Indian wheat will compete with grain from the Black Sea region,” said Vijay Iyengar, managing director of Agrocorp International Pte.
“The weak currency will make Indian wheat more competitive in the world market,” Abdolreza Abbassian, an economist at the United Nations’ Food & Agriculture Organization, said in a phone interview on Wednesday. “There is potential to increase exports. To export more, or to be more competitive, Indian price has to be closer to the world market.”
“Indian supplies at about $260 a tonne free-on-board basis could compete with those from Russia and Ukraine,” Emmsons’ Narang said. “Egypt, the world’s biggest importer, bought 295,000 tonnes of wheat on Wednesday at prices from $250.44 a tonne and $254 a tonne,” said Mamdouh Abdel Fattah, vice chairman of the state-run General Authority for Supply Commodities.
Source:- livemint.com
Reduce Unnecessary Imports
The government can no longer go ahead thinking this is business as usual. The current strategy is ad hoc and needs a change. The crisis measures have to be a part of a medium-term strategy. The current crisis must be seen as an opportunity to revive domestic production.
The current account deficit has ballooned partly because court orders have closed Indian mines for iron ore and coal, reducing exports and necessitating imports of those products. Non-essential imports, particularly those imports that have affected employment and livelihood, and gold imports have to be reduced. This is why the food security bill is good as it releases people with incomes for other spending.
If the private sector is not willing to invest, we need to get on with it.
We need an alternative source of demand that creates necessary infrastructure.
Source:-www.thehindu.com
Onion Prices Stay High As Imports Likely To Take More Time
29-Aug-2013
Even as persistently high onion prices prompted the Central government to import it from other nations, there is no immediate relief for the consumer.
Onion prices continued to stay higher even after a fortnight of the announcement of imports of onion from Pakistan, Iran and China.
At Lasalgaon market, onion prices hovered around Rs 3,400 a quintal, which is higher by around Rs 200 a quintal on August 20.
Central government decided on August 14 to import onions, which hovered around Rs 4,700 a quintal. But there was not much relief as prices continue to remain high at other wholesale markets.
“The government has announced import of onions. But it will take at least a week more to reflect its impact on the market. Prices still continue to stay high at major onion markets,” said a trader from Nashik.
In other markets, including Ahmedabad, Mumbai and Delhi, prices hovered between Rs 3800 Rs 4300 a quintal. Arrivals remained thin between 700 quintal and 5,000 quintal at these markets.
The state agency, National Agricultural Cooperative Marketing Federation of India (Nafed) has issued tenders asking interested onion traders to submit their proposals by August 27. The imports will start only a week after the finalization of the parties. Hence, traders see no likelihood of prices to cool off before September 10.
“In retail prices will continue to remain high till the first week of September. We reflect prices at Lasalgaon market. But there are no indications of a fall in prices there. So at other markets also prices will remain high,” an onion wholesaler at Ahmedabad’s Chimanbhai Patel APMC informed.
In retail, prices are once again quoting around Rs 60-70 per kg in Ahmedabad market, while in Delhi, the prices have touched Rs 80 a kg once again.
As per the NHRDF sources, domestic arrivals have not yet started in full swing. It will start after September 15. Till then the government has decided to source more than 3,00,000 tonnes of onions from countries like Pakistan, China, Iran and Egypt.
Source:- business-standard.com
Ghg Impacts In China Now Considered In Pnw Coal Export Review
29-Aug-2013
The coal industry’s plan to move millions of tons of coal through Pacific Northwest (PNW) terminals to China and other Asian markets received a body blow when Washington regulators said environmental impact reviews must consider the worldwide impact of burning the export coal in China.
One of the major battles surrounding the various proposals has centered on the “scope” of the environmental review process.
That question was answered on July 31 when the U.S. Army Corps of Engineers, the Washington State Department of Ecology, and Whatcom County jointly announced the scope of their joint Environmental Impact Statement (EIS) for a proposed coal export terminal at Cherry Point, in northwest Washington State. If built, it would be the largest coal export terminal in North America, exporting up to 48 million metric tons of coal per year to Asia. The proponents of the terminal include Peabody Energy, SSA Marine, and Goldman Sachs.
In a major victory for opponents of the export proposals, the scope of the environmental review will be broad, and not limited to the PNW region as pushed by coal industry proponents.
The state’s environmental review will include: human health impacts from coal dust around the Cherry Point terminal and in communities along the entire rail line, marine traffic impacts, rail traffic impacts, greenhouse gas emissions from burning the exported coal in Asia, and cumulative impacts from the second proposed terminal in the state, the Millennium Bulk Terminal in Longview, WA.
This is precedent-setting stuff—especially the part about impacts of GHG emissions from burning the exported coal in Asia. It raises the bar on passing environmental muster to a new, much more difficult, and perhaps impossible, level for export terminal supporters.
“Washington state has set a new precedent that could potentially interfere with international commerce laws protecting rail and trade and discourage new business investment in the state,” was the response in a statement issued by the Alliance for Northwest Jobs & Exports, a business group.
“This scope is a reflection of Northwest values – the depth and breadth of the scope is absolutely on target and appropriate given the impacts this project would have on our way of life,” said Cesia Kearns, campaign director for the Power Past Coal campaign, a coalition of hundreds of businesses, health experts, community organizations and environmental and faith groups.
Cherry Point is one of three remaining coal export proposals in Washington and Oregon; three other proposals were scrapped over the past year. If all three terminals are built, it would mean up to 100 million metric tons of coal exported every year, and up to 40 trains per day traveling through many rail-line communities such as Missoula, Montana and Spokane, Washington.
Is the PNW coal export plan falling apart? The EIS scoping decision could be a deadly nail in its coffin, but there is still a long way to go, three remaining terminal proposals, a desperate and well-heeled coal industry, and a lengthy review process ahead.
But here’s an interesting tidbit about the Cherry Point proposal: last month Goldman Sachs, a Cherry Point proponent, said coal export terminals are a bad investment. Oops!
Source:- triplepundit.com
The Rising Challenge Of Food Security – Analysis
Demand for food is expected to increase, outpacing supply. As this situation worsens in the years ahead, the world will be burdened by the growing problem of food security. Expect more debate on this front in the years to come.
THE WORLD is being haunted again by the spectre of a global food shortage. Demand for food over the next decade is expected to increase by one per cent annually but global food productivity gains have declined from two per cent between 1970 and 2000 to one percent today and continuing to decline.
A 2011 study reported that the world had consumed more than it had produced for seven out of the past eight years. These concerns will lead to growing attention to the nexus between food, water and energy resources, especially as climate change is expected to have an increasing impact globally.
Need for integrated approach to food security policy
Nineteenth century economists struggled with the Malthusian dilemma: as populations rose, it was assumed that a forced return to subsistence agriculture would act as a check on population growth. The reality was that the opening of new agricultural land, technological innovation and higher yielding crops resulted in a capacity to feed an ever growing population.
However, as once autarkic economies such as China and India have opened to global trade and more wealthy societies are eating more protein, consuming more calories and enjoying more varied diets in recent years, there is growing concern with the fragility of the global food system. These concerns were highlighted by the spike in food prices and disruptions in food supply during the 2007-2008 global food crisis.
My colleagues at the RSIS Centre for Non-Traditional Security Studies have emphasised that robustness in food security systems is critical and that governments need to work with the private sector and other key stakeholders. Instead of piecemeal strategies, an integrated and holistic approach to policy formulation and implementation is critical to deal with the four dimensions in food security: availability, physical access, economic access and utilisation.
Although agricultural issues appear distant from an urbanised Singapore, food security is politically sensitive precisely because we are dependent on international markets for our food supply. Sharp increases in the price of key food imports, export bans by major food suppliers and difficulties in obtaining adequate supplies could have significant domestic ramifications.
Source:- eurasiareview.com
Costlier Imported Scrap Pushes Domestic Sponge Iron Prices
29-Aug-2013
The prices of sponge iron, is used as an input for steel making along with metal scrap, have moved up, riding on the rising cost of imported scrap due to depreciation of the rupee against dollar.
Over the past two weeks, sponge iron prices have risen by three per cent to trade at Rs 17,500 a tonne at trading hub Rourkela.
According to industry insiders, the rates are likely to go up by another Rs 500 a tonne, as more buyers are expected to switch from imported scrap to sponge iron. Sponge iron or directly reduced iron (DRI) is used as a raw material in electric arc furnaces and induction furnaces to produce hot steel with some amount of steel scrap.
The arc furnaces usually require sponge iron and steel scrap in 60:40 ratio and change the amount of steel scrap in the mix, based on the prices.
"The buyers will prefer more sponge iron instead of steel scrap in the days to come. We hope the rates could touch Rs 18,000 per tonne at Rourkela in September and the demand will last till December," said an official of Tata Sponge Iron Ltd.
In international markets, steel scrap rates are hovering around $340 a tonne at European ports at present, up from $333 a tonne in July. Meanwhile, the rupee has declined against the dollar by more than five per cent in August alone.
More, the imposition of import duty on steel scrap at 2.5 per cent has made the rates costlier. The landed cost of steel scrap at Mumbai port is currently Rs 23,000 a tonne, up from Rs 21,000 a tonne a month ago. India imports around 7.5 million tonnes of metal scrap a year. With domestic scrap generation largely dominated by unorganised sector collectors, metal recyclers have to depend on imports.
"The rates (of sponge iron) have gone up because of regular post-monsoon demand and not on costlier scrap as the scrap imports have not fallen despite imposition of import duty. It is overall demand for all steel products that has seeped into sponge iron, too," said Deependra Kashiva, executive director of Sponge Iron Manufacturers' Association.
In India, the demand for all steel products rise in post-monsoon period coinciding with construction activities that speed up during the period. Demand for flat products also go up during this period in expectation of better automobile sales at Diwali and other festivals which come after the July-September monsoon season.
Source:- business-standard.com
Gold Price Tumbles Rs 1,575 From Record High On Fresh Selling
29-Aug-2013
Gold prices in India fell from their record high on Thursday, plunging Rs 1,575 to Rs 32,325 per 10 gram, on profit-selling by stockists amid a weakening global trend.
Besides the rupee recovering to 67.30, some retailers selling old scrap gold further influenced the trading sentiment.
Selling pressure emerged at existing higher levels as gold climbed to Rs 33,900 after it touched Rs 34,500 per 10 gram intra-day on Wednesday with its biggest ever gain of Rs 1,900 in the backdrop of the rupee hitting record low of 68.85 per dollar.
Traders said the market also received impact of weakening global trend on optimism the US economic data may reinforce the case for the Federal Reserve to slow stimulus.
Gold in Singapore, which normally set price trend on the domestic front, lost 0.9 per cent to $1,404.88 an ounce and silver by 2.8 per cent to $23.66 an ounce.
Silver followed suit and plunged by Rs 2,790 to Rs 55,710 per kg on poor offtake by industrial users and coin makers at higher levels.
On the domestic front, gold of 99.9 and 99.5 per cent purity tumbled by Rs 1575 each to Rs 32,325 and Rs 32,125 per ten grams respectively. Sovereign lost Rs 200 at Rs 25,300 per piece of eight gram.
Silver ready nosedived by Rs 2790 to Rs 55,710 per kg and weekly-based delivery by Rs 3700 to Rs 55,300 per kg. The white metal had surged Rs 3700 in the previous session.
Silver coins also plunged by Rs 3,000 to Rs 89,000 for buying and Rs 90,000 for selling of 100 pieces on poor demand at prevailing higher levels.
Source:- businesstoday.intoday.in
Rupee Trims Initial Gains Vs Dollar, Still Up By 120 Paise
29-Aug-2013
The rupee trimmed its initial gains against the US currency, but was still quoted higher by 120 paise to 67.60 per dollar in the late morning trade on selling of dollars by banks and exporters in view of steps taken by Reserve bank of India yesterday.
The battered rupee recovered after the Reserve Bank of India (RBI) yesterday said it has started a facility to meet the daily dollar requirement of the country's three state-run refiners.
The rupee resumed higher at 66.90 per dollar as against the previous closing level of 68.80 per dollar at the Interbank Foeign Exchange (Foerx) Market and firmed up further to a high of 66.85 per dollar.
However, it trimmed its initial gains and was quoted at 67.60 per dollar at 1040 hrs.
It moved in a range of 66.85 per dollar and 67.71 per dollar during the morning deals.
Banks and exporters preferred to reduce their dollar position in view of recovery in the equity market.
The benchmark Sensex rose by 201 points or 1.12 per cent to 18,197.33 at 1050 hrs.
However, in New York market, the dollar yesterday rose against major currencies, including the pound, as investors continued to worry about a possible military strike in Syria.
Source:- economictimes.indiatimes.com
Application filed with Commissioner of ST is as good as filed with Commissioner of Central Excise
ST : Where an application, required to be filed with Commissioner of Central Excise, had been filed with Commissioner of Service Tax within due date but was transferred to Commissioner of Central Excise after due date, such application could be regarded as filed with Commissioner of Central Excise within time
Mere disallowance of any exp. doesn't warrant mandatory imposition of concealment penalty
IT: Disallowance of repair expenses as revenue expenditure could not be basis to impose penalty under section 271(1)(c)
Payment for delay in completion of buy-back process under open offer to be deemed as cap gains and n
IT/ILT: Interest received by assessee for delay in completion of the process of buy-back of shares under open offer to be deemed as capital gain and not interest income
Amended Rules on Prevention of Money Laundering pertaining to search and seizure; scope extended to
MONEY LAUNDERING : Prevention of Money-Laundering (Forms, Search and Seizure or Freezing and The Manner of Forwarding The Reasons and Material to The Adjudicating Authority, Impounding and Custody of Records and The Period of Retention) (Amendment) Rules, 2013 - Amendment in Rules 1, Rule 2, 4, 8, 9, 10 and Substitution of Form-I
SEBI issues guidelines on ‘conflict of interest’ for market entities; asks them to ensure compliance
SEBI : General Guidelines for Dealing with Conflicts of Interest of Intermediaries, Recognised Stock Exchanges, Recognised Clearing Corporations, Depositories and Their Associated Persons in Securities Market
SEBI tightens share purchase disclosure norms for CRAs; seeks compliance by October 1, 2013
SEBI : Guidelines for Dealing with Conflict of Interest for Investment/Trading by CRAs, Access Persons and Other Employees
Audited books are sacrosanct if auditor doesn't comment adversely on their maintainability
IT : Where books of account of assessee were audited and auditor had not given any adverse comments in maintenance of books of account or stock register, it was apparent that assessee had maintained proper books of account and Assessing Officer was wrong in rejecting same
Sound recording on blank discs is a 'manufacture'; not liable to service tax
ST: Recording of audio cassettes on duplicating music system amounts to 'manufacture' and is, therefore, not liable to service tax by virtue of negative list
RBI’s helping hand to support Rupee; launches a window to sell dollars directly to Public Sector Oil
FEMA/ILT : RBI Introduces Forex Swap Window for Public Sector Oil Marketing Companies
Rules notified on mode of taking possession of attached or frozen properties relating to money laund
MONEY LAUNDERING : Prevention of Money-Laundering (Taking Possession of Attached or Frozen Properties Confirmed by The Adjudicating Authority) Rules, 2013 Issuance of Provisional Attachment Order) Rules, 2013
CG notifies rules dealing with order of provisional attachment of properties involved in money laund
MONEY LAUNDERING : Prevention of Money-Laundering (Issuance of Provisional Attachment Order) Rules, 2013
AO can't seal fate of stay application without giving opportunity of personal hearing to assessee
IT : While examining an application for stay of demand, Assessing Officer must pass a speaking order and extend opportunity of personal hearing, if sought by assessee
Provision for liquidated damages founded on reliable estimates is ascertained liability and allowabl
IT: When a company made reliable estimate of liquidated damages based on performance capacity and quality and materials relating to machinery, its claim for provision towards damages was fully allowable
A provider of exempt services is not an 'assessee'
ST/ECJ: A service provider (viz. lawyer) providing exempted services is not a person liable to pay service tax and is, therefore, not an assessee
Additions for items shown in audited accounts not sustainable if books of account weren't rejected
IT : Where books of account were not rejected, addition of amounts shown in audited account is not sustainable
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