IT: Section 145 is mandatory and revenue is bound by assessee's choice of a method regularly employed unless by that method true income, profits and gains cannot be arrived at
Tuesday, 17 September 2013
Value of gambling services doesn’t include stakes paid to players
ST/ECJ : In case of gaming machines offering possibility of winning, taxable amount does not include statutorily prescribed proportion of total stakes inserted which corresponds to winnings paid out to players
Bank loan to be reduced from 'net worth' computed under sec. 50B for purpose of slump sale
IT: Amount of bank loan relatable to undertaking has to be reduced while calculating net worth under section 50B
AO to do his home work before disallowance for TDS default; scot fee passage if nature of payment is
IT/ILT : Where nature of payments to non-resident was not correctly ascertained, disallowance for non-deduction of tax could not be made
'A residential house' doesn't mean one house under sec. 54F; ITAT grants exemption for investment in
IT : Expression 'a residential house' as appearing in section 54F cannot be interpreted in a manner to suggest that exemption would be restricted to a single residential unit
I-T dept extends date for applications by Electoral Trusts
The Income Tax Department today extended the date to November 30 for filing of applications by Electoral Trusts for getting tax benefits on donations given to political parties.
"The Central Board of Direct Taxes (CBDT) has permitted Electoral Trusts to file their applications up to November 30, 2013 in respect of Assessment Year 2014-15 for approval under clause (22AAA) of Section 2 of the Income-tax Act, 1961...," the Finance Ministry said in a statement.
Earlier, the last date for filing applications by such non-profit companies for the next Assessment Year was July 31.
The government notified the Electoral Trusts Scheme earlier this year to streamline the process and bringing in more transparency in the funds provided by corporate entities to the political parties for election-related expenses.
The move was aimed at bringing greater transparency in corporate funding of political parties' poll expenses.
The scheme permitted the entities to register non-profit companies having 'Electoral Trust' as part of their names, thus differentiating them from the companies having other business interests.
As per the scheme, such companies can get tax benefits only if they distribute 95 per cent of total contributions received by them in any financial year to the registered political parties within that year itself.
Besides, they can not receive any contribution in cash and they are required to take the Permanent Account Number of all contributors who are resident Indians, and passport number of non-resident Indian citizens at the time of receiving the contribution.
These Electoral Trust companies are not allowed to accept contributions from foreign citizens or companies.
As per the rules, all donations to political parties should be made only through cheques to get tax benefits.
Many business conglomerates, including Tatas, Aditya Birla group and Bharti Groups, have in the past disclosed having made contributions to different political parties through their trusts.
Rinl Aims To Double Exports To Rs 1,200 Crore In Near-Term
Rashtriya Ispat Nigam Ltd (RINL) may see its export revenue more than doubling to around Rs 1,200 crore in the near future on the rupee depreciation and an increased thrust on overseas shipments, a top official of the public sector steel firm said today.
"Exports during 2012-13 was around 8 per cent of the total volume of iron and steel. This fiscal, more volume of steel is going to be exported. From the existing level of Rs 500 crore, the revenue from exports may go up to Rs 1,000-Rs 1,200 crore," RINL Director (Commercial) T K Chand said in an email reply to PTI.
He said with ramping up of production, RINL aims to increase export composition to go up to 15-20 percent of its product volume in next 3-4 years from 8 per cent in the last fiscal. As per the company, it plans to set up steel processing units in Sri Lanka and other neighbouring countries to roll its billets in these regions.
"RINL has already entered into MoUs and is also planning to enter into new MOUs for exports," Chand said. The steel firm, currently under expansion phase, plans to increase its total export volume to 1 million tonne in 2016-17. "With increase in production, exports will accordingly increase touching one million tonnes in 2016-17," Chand said. With the sharp depreciation of rupee in the recent months, all steel manufacturers are increasing their efforts to export more for higher realisation and also to offset the impact of coking coal import.
The PSU said that pig iron export, in which it is a major player, will also go up in the future. "In pig iron exports, RINL is the top exporter of the country and is at present having 59 per cent share of country's exports. With its capacity increasing, the share is likely to go up," Chand said. The Navaratna PSU has a 3 million tonne steel production capacity plant in Visakhapatnam.
Source:- moneycontrol.com
Qrc Hurdle Causes Huge Decline In Basmati Export
The Rice Exporters Association has feared a huge decline in basmati rice export due to inconsistent policies of the government, severe energy crisis and bureaucratic hurdled created by the Quality Review Committee of TDAP.
Addressing the farewell ceremony, which was held to welcome the upcoming chairman Masood Iqbal and pay tribute to the services of the outgoing vice chairman Ch Samee Ullah, the members said that they have given the vice chairman full mandate to abolish the QRC in case the bureaucratic hurdles are not removed in way of export.
The Rice Exporters Association North Zone on Tuesday held a farewell ceremony in honour of its outgoing vice chairman Ch Samee Ullah, appreciating the steps taken by him for strengthening the role of association in rice export enhancement.
The ceremony was attended by former chairman Javed Islam Agha, Shahzad Ali Malik and ex-vice chairman Tariq Aziz.
Tariq Aziz lauded the services of Mr. Samee Ullah and wished him success in future, whose tenure as a vice chairman of the REAP is going to expire on Sept 31.
He said that the production of rice in Pakistan has remained static at around 5 million tons annually but the export earnings have increased two fold in the last 4 years from $ 570 million to $2 billion, which was only possible by building up the perception of Pakistani rice by the leaders of the REAP, including Samee Ullah Ch. He said that the task had required unified, consistent and innovative campaign and efforts from the stage of REAP, which was fulfilled with whole commitment by both the chairman as well as the vice chairman.
Samee Ullah Ch, addressing the farewell party expressed his gratitude to the office-bearers and senior staff for the support and guidance provided to him during his tenure in office, besides wishing the new management good luck for the improvement of the rice sector.
Highlighting the key features of his tenure, he said the Association got legalized the 386 rice variety by the Punjab Seed Council which was pending since 1990.
He said that due to the efforts of REAP, the process of approval of six acre land for rice technical institute is in final stage, where he also announced to set up state of the art technical training institute through EDF Funds.
He informed that association sent teams to South Africa to explore the new rice market while another delegation is ready for S Arabia which are dominant by the Indian rice varieties.
He also announced that CM Shahbaz Sharif has consented to be chief guest at the upcoming Reap export trophy award. Samee expressed hope that newly elected government with the help of the REAP new management will play its vital role for the betterment of rice export, besides resolving problems being faced by the rice exporters.
Source:- nation.com.pk
SAT grants post-facto exemption from making a public offer of warrants converted into shares to revi
CL : Post facto exemption from making a public offer under Takeover Code of 1997 with respect to warrants converted into shares can be given in certain circumstances
Inflation Down To 7.9 Percent
At a time when prices of essential commodities have been increasing due to weakening Nepali rupee against US dollar, Nepal Rastra Bank (NRB) has said inflation in the first month of 2012/13 (the month ending mid-August) was recorded at 7.9 percent compared to 11.9 percent recorded in the same month of last year.
The Macro Economic Situation of Nepal, a monthly economic update released by NRB, shows prices of commodities under food and beverage group, and non-food and services group rose by 8.9 percent and 7 percent, respectively, during the review period. Prices of food and beverages, and non-food and services had increased by 12.2 percent and 11.6 percent in the same period last year.
Average inflation was recorded at 9.9 percent in the last fiscal year, despite the government´s target to limit it within 7 percent. In the budget for fiscal year 2013/14, the government has set the target of containing inflation at 8 percent. Economists, however, have termed the target an ambitious one given the rising prices of fuel and other commodities owing to strong greenback.
Among the commodities falling under the food and beverage group, price index of meat and fish sub-group saw the highest increment of 17.4 percent during the review month. The inflation in the sub-group was recorded at 11.5 percent last year.
Price of commodities under restaurant and hotel sub-groups increased by 12.2 percent during the review month, down from 12.6 percent recorded in the same month last year. However, price index of food grains went up significantly to 11. 5 percent compared to 5.8 percent recorded last year.
Prices of tobacco products and hard drinks increased by 9.9 percent and 9.6 percent, respectively, compared to 17.9 percent and 12.1 percent in the same month last year.
In the non-food and services group, the price index of furnishing and household equipment increased by 10.8 percent during the review period compared to a rise of 14.2 percent in the same period of last year.
In foreign trade front, country´s trade deficit continued to increased, albeit at a lower rate, compared to trade figures of the same month last year. According to the central bank´s report, total trade deficit increased by 4.5 percent to Rs 41.56 billion during the review month. Trade deficit with India increased by 9.9 percent during the review period compared to an increase by 58.9 percent in the same period of the previous year.
However, trade deficit with other countries decreased by 4.4 percent in contrast to an increase of 36.3 percent during the same period of last year. The ratio of export to import was recorded at 15.4 percent during the review month compared to 15.3 percent during the same period of the last year.
During the review month, total merchandise exports went up by 5.4 percent to Rs 7.59 billion. Such exports had increased by 18.5 percent to Rs 7.2 billion during the same period last year.
Similarly, export to India - Nepal´s largest trade partner -- went up by 15.1 percent during the review month, up from 5.7 percent reported in the same period of last year.
“The rise in export to India during the review period is due to increase in export of zinc sheet, juice, Ayurvedic medicine and polyester yarn, among others,” says the report.
However, country´s export to third countries declined by 7.7 percent during the period due to drop in export of pulses, paper and paper products. Nepal´s third country exports had increased by 42.1 percent in the same month last year.
Similarly, total merchandise imports soared by 4.6 percent to Rs 49.15 billion in the review month. In the same month of last year, total merchandise imports had increased by 43.7 percent to Rs. 46.98 billion.
Imports from India increased at a slower rate of 10.7 percent during the review month compared to 48.1 percent recorded in the same month of last year. However, import from other countries went down by 4.9 percent in the first month of 2013/14, compared to growth of 37.2 percent recorded in the same period last year.
According to the report, imports from India increased largely due rise in the import of petroleum products, other machinery & parts, dry cell battery and medicine, among others.
Similarly, NRB attributed decline in imports from overseas countries to drop in the import of pipe and fittings, electrical goods, gold and edible oil, among others.
Nepal´s Balance of Payments (BoP) recorded surplus of Rs 16.09 billion during the month ending mid-August, the latest macro economic report of Nepal Rastra Bank shows.
The surplus was Rs 5.56 billion during the review period of 2012/13.In the review month, the current account registered surplus of Rs 10.07 billion compared to a surplus of Rs 56.7 million in the same period of the previous year. The report says high surplus in the current account is primarily due to low growth of merchandise imports and decline in the service imports during the review period.
Similarly, the gross foreign exchange reserves increased by 4.2 percent to Rs 555.87 billion during the review month, up from Rs 533.3 billion recorded a month earlier.
Source:- myrepublica.com
Rubber Output Falls 15%
17-Sep-2013
Natural rubber production declined 15.5 per cent during the first five months of the current financial year, one of the sharpest falls in recent years.
According to the latest Rubber Board data, the cumulative production figure during the April-August 2013 period was 265,000 tonnes, compared with 313,700 tonnes in the corresponding year-ago period. In August alone, a 5.5 per cent drop was recorded as the monthly output decreased to 69,000 tonnes from 73,000 tonnes in August 2012.
According to farmers, heavy monsoon during the five-month period is the main reason behind the sharp fall in production. Major rubber-producing districts in Kerala such as Kottayam and Pathanamthitta have recorded a 35 per cent fall in production during June and July. Tapping of rubber trees was stalled for weeks together because of bad climatic condition. There was large-scale damage to plantations, too. Farmers said there was a spillover of monsoon in August as well.
Consumption of natural rubber, too, suffered a setback with 2.8 per cent drop being recorded during the April-August period at 408,805 tonnes against 420,510 tonnes in the same period of FY13. In August this year, consumption was 80,000 tonnes compared to 83,430 tonnes in August 2012, a decline of three per cent. In the current financial year, both consumption and production are on a decline. The general economic slowdown and setback to automobile manufacturing industry are the major reasons behind the fall in natural rubber consumption.
However, import to the country increased to 128,465 tonnes in April-August against 97,862 tonnes in the year-ago period.
There was a cent per cent increase in August this year at 40,809 tonnes against 17,684 tonnes in the same month last year, Rubber Board data showed.
The overseas market is advantageous to rubber-based industries, especially the tyre industry, as global prices are much lower than local ones.
Export of rubber is on a pathetic condition as the total export in the five-month period was 2,319 tonnes against 6,413 tonnes during April-August 2013.
India had a stock of 210,000 tonnes of rubber at end-August against a stock of 218,000 tonnes a year ago, Rubber Board data showed.
Source:- business-standard.com
Iran's New Government Scraps Oil And Gas Connections To India
17-Sep-2013
The new government in Iran has withdrawn all crucial oil and gas concessions that had been promised to India by its predecessor.
Oil minister Bijan N Zangeneh, it is learnt, told Indian ambassador D P Srivastava on September 1 that Tehran would not accept the entire payment for crude oil imported by India in rupees as agreed in July.
India was banking on 100 per cent rupee payment for Iranian crude to cut its forex outflow. Petroleum Minister M Veerappa Moily had assured Prime Minister Manmohan Singh last month that an additional 11 million tonnes would be imported from Iran in 2013-14 to save $ 8.47 billion.
Iran has since stopped issuing invoices in rupees for the full quantity of crude and reverted to the old system of accepting only 45 per cent of the payment in rupees.
Zangeneh, it is learnt, told Srivastava that the new Central Bank of Iran governor had complained of difficulties in transferring money in euros from India to other countries to pay for food and medicines.
Iran, he said, needed help in resolving the problem with getting 55 per cent payment in euros, which was being routed through Turkey's Halkbank, and ended in February. Zangeneh wants India to renegotiate the terms and revert to majority euro payment.
Zangeneh also told the Indian envoy that the previous regime's offer to sign a production sharing contract (PSC) for the Farzad B offshore gas field was "not acceptable", as he could convince neither the government nor parliament to approve the PSC.
Under PSC, an operator gets a share of production or revenue in proportion to its investment. In a service contract, the Indian consortium would get a flat 15 per cent return on the investment for developing the field.
Source:- indianexpress.com
Officials Try To Push Service Tax Amnesty After Tepid Response
P Chidambaram's voluntary disclosure of income scheme (VDIS) of 1997 may have been a great success but in 2013, it seems the government needs to push hard a similar amnesty scheme for service tax payers. With a tardy response to the scheme so far, the top brass like the revenue secretary and even finance minister have entered the ring.
They have been personally holding meetings in different cities asking businessmen to take advantage of voluntary compliance encouragement scheme (VCES) 2013 for service tax announced in the union budget. This is the second such meeting in the city after one being held by the chief commissioner of customs and central excise last month.
VCES has been operational since two months and so far 1000 applications have been accepted throughout the country. In the Nagpur range that covers Nashik and Aurangabad apart from Vidarbha region 150 applications have come. There are over 28,000 service tax assessees in this range. On Tuesday the union revenue secretary Sumit Bose addressed representatives from different business associations of the city. He also took suggestions from them apart from talking about the scheme. Bose has held meetings in other cities too.
It is not the revenue secretary alone who had called on the traders, even the finance minster P Chidambaram held a meeting at Kolkata, said a senior official accompanying the revenue secretary. Another such event is planned in Nashik with a member of Central Board of Excise and Customs (CBEC), addressing the businessmen. CBEC is the governing body of service tax department.
Bose was originally supposed to attend a function at National Academy of Direct Taxes (NADT) but he preferred to address traders on the VCES issue instead. Businessmen and tax practioners, on the other hand, say that they do not find the scheme attractive. Ashok Chandak, former president of Institute of Chartered Accountants of India (ICAI), said the businessmen want a blanket amnesty scheme. However, VCES does not cover such cases in which the department has already taken action or a litigation is underway. This is a major reason making them wary of VCES.
Businessmen also apprehend that once they put up an application under the scheme it may attract trouble in future as it may provide taxmen a base to act against them, said a source. "We lack confidence in the bureaucracy," said another trade representative present in the meeting with Bose.
Later, at the sidelines of the meeting, Bose told TOI so far no target had been fixed for the scheme but the government hoped to bring maximum number of assessees under the VCES. The scheme ends on December 31. He also stressed that once the period ended the department would crack down hard on the defaulters.
A source in the department said though no sector could be pinpointed as such, large defaults have been seen in the construction industry after the sale of flats and other units was covered under service tax. This is also because in many cases the buyers themselves do not want to shell out the levy.
Source:- timesofindia.indiatimes.com
Now, Govt Hikes Import Duty On Jewellery
The government on Tuesday hiked customs duty on jewellery from 10% to 15%, widening its net to curb import of the yellow metal.
The latest move was meant to protect the local industry as there was no difference between the customs duty on gold, silver and jewellery. "Jewellery-making is a labour-intensive industry. Millions of artisans are dependent on this sector for their livelihood. In the absence of any duty differential between articles of jewellery and primary metal, which was 8% in the case of gold jewellery and 4% in the case of silver jewellery in January 2012, there is an apprehension that Indian jewellery makers would not be able to compete with cheaper imports, particularly when majority of the imported jewellery is machine-made as compared to handmade jewellery in India.
To protect interests of small artisans, customs duty on articles of jewellery and of goldsmiths' or silversmiths' wares and parts thereof is being increased from 10% to 15%," the finance ministry said. The government has increased the import duty on the gold from around 1% at the start of 2012 to discourage imports and manage the current account deficit, which was estimated at a record 4.8% of GDP in in 2012-13.
Jewellery imports are a fraction of gold imports. During 2012-13, jewellery imports were estimated at almost $5 billion, while gold import was valued at almost $56 billion. The Economic Advisory Council to PM has projected that the inflows would decline to around $40 billion during the current financial year as the government has put in place a number of checks.
Source:- timesofindia.indiatimes.com
Rupee Breaches 63 A Dollar
Stock markets were subdued and the rupee slipped again to breach 63-mark against dollar on Tuesday ahead of the U.S. Federal Open Market Committee’s (FOMC) decision on its stimulus programme. Further, the outcome of the U.S. Federal meet (on Wednesday) is crucial for the Reserve Bank of India (RBI) when it reviews its monetary policy on September 20.
The rupee closed at 63.37 on Tuesday as compared to its previous close of 62.83 on Monday. It moved in a range of 62.95 to 63.64 intra-day.
“Indian rupee lost ground once again as it depreciated in Tuesday’s session, after surging to its highest level in over a month recently, wherein it tested highs of 62.45 in spot market,” said Sugandha Sachdeva, Assistant Vice-President and Incharge-Metal, Energy & Currency Research, Religare Securities.
The recent appreciation of the rupee was supported by a recovery in domestic equity markets and sliding dollar index. Further impetus for the rally was Larry Summer's exit from the race for Federal Reserve Chairman. He was considered by markets to be in favour of tapering the Fed’s massive bond-buying programme. His withdrawal has put Janet Yellen as the front runner in the race for the job. She, on the other hand, is believed to have a soft stance towards the continuation of stimulus programme. The Indian currency’s movement is likely to be highly volatile in coming days till the outcome of the two-day-long Federal Reserve meeting, and its stance towards slowing down the pace of asset purchase programme. “Markets will also be looking forward to the RBI monetary policy on September 20. Price pattern, however, suggests that the rupee is expected to swing in the range of 61-65.50 in the near-term, due to a high level of uncertainty in the market place,” Ms. Sachdeva added.
However, in the offshore non-deliverable forwards, the one-month contract for the rupee was at around 64 per dollar, and for three-month contract below 65.
Sensex up
The Bombay Stock Exchange (BSE) 30-share Sensitive Index (Sensex) closed at 19804.03 with a gain of 61.56 points or 0.31 per cent. On the National Stock Exchange (NSE), the 50-share Nifty gained 9.65 points or 0.17 per cent to close at 5850.20.
Source:- thehindu.com
THE COMMISSIONER OF INCOME TAX XVI Vs. SH. YASHIMITSU ZAUTSU
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Assessee should test all comparables on same yardstick before alleging unsuitability of same
IT/ILT : Assessee has to subject all comparables selected by revenue to same test for selecting unsuitability of same
Organizers of skill-competitions are liable to pay service tax on full value of entry fees
ST/ECJ : Organizers of skill-competitions are liable to pay service tax on full value of entry fees collected by them and cannot claim deduction of prize money paid by them out of such collections
Interest on capital and salary payments to partners to be excluded to work out sec. 10B relief
IT : Interest on capital and remuneration payable to partners were to be excluded for computing profits eligible for exemption under section 10B
CBDT extends time-limit for filing of applications by Electoral Trust up to 30-11-2013 for AY 2014-1
IT : Section 2(22aaa) of The Income-Tax Act, 1961, Read with Para 5(a) of The Electoral Trusts Scheme, 2013 - Electoral Trust - Extension of Date for Filing of Applications by Electoral Trusts
Mere stamping 'approved' on AO's reassessment report by CIT couldn't be deemed as his sanction under
IT: Where Assessing Officer reopened assessment of assessee after four years and Commissioner had simply affixed 'approved' at bottom of report prepared by Assessing Officer and accorded sanction under section 151(1), Commissioner had not accorded sanction after applying mind and, therefore, reassessment proceedings were bad in law
Service tax is levied on all services other than those specified in negative list'
We are a unit registered with Software Technology Park of India (STPI). For the services that STPI gives to us, service tax is being charged. Is it correct and, if so, under what provisions?
Under the new service tax regime since 1.7.2012, as per Section 66B of the Finance Act, 1994, service tax is levied on all services provided or agreed to be provided in the taxable territory, other than services specified in the negative list. The service you mention is not covered under the negative list in Section 66D of the said Act. The said service is also not exempted under any notification issued by the Government. Therefore, charge of tax on services provided by STP is quite correct.
Can we utilise the Cenvat Credit taken of duty paid on capital goods and inputs towards payment of excise duty on trial production?
The answer is 'yes', provided the final products you get from trial production are dutiable. In case they are not dutiable but you have common inputs that go into manufacture of dutiable and non-dutiable final products, you may examine the options under rule 6(2),6 (3) and 6 (3A) of Cenvat Credit Rules, 2004.
We manufacture and supply plants for petrochemicals companies. For one of our projects we intend to supply the material from our SEZ unit to our customer who is in DTA and is an EPCG licence holder. Could you please guide us on the procedures for the same?
You can ask the DTA buyer to give you an authority to file a Bill of Entry on his behalf and also give you the EPCG licence along with the Release Advice from the port of registration. Then you can file the Bill of Entry with the SEZ Customs on behalf of your customer and ask the Customs to debit the EPCG licence and grant clearance as per the relevant customs notification for import under the EPCG licence.
Can we claim duty drawback for supplies made to EOUs and SEZ units and also count the same towards export obligation against imports of equipment against EPCG licenses?
Yes. As per Para 5.3 (d) of the FTP, Shipments under Advance Authorisation, DFRC, DFIA, or Drawback scheme, or incentive schemes under Chapter 3 of FTP would also count for fulfilment of EO under EPCG Scheme. As per Para 5.3 (f) of FTP, deemed exports as specified in paragraph 8.2 (a), (b), (d), (f), & (j) of FTP shall also be counted towards fulfilment of the export obligation, along with the usual benefits available under paragraph 8.3 of FTP.
Do I have to pay service tax on interest that our customer gives us for delayed payment of our bills?
No. In terms of Rule 6(2) (iv) of Service Tax (Determination of Value) Rules, 2012, interest on delayed payment of any consideration for the provision of services or sale of property, whether movable or immovable, is excluded from the value of taxable services.
Rent paid for car parking is an eligible service credit
ST : Renting of car park, cafeteria and terrace of building, which are part of business premises, is eligible for input service credit
Building given on rent categorised as 'Investment'; its value to be reduced from WDV of block of bui
IT: WDV of block of building is first to be adjusted by removing building which is let out during year and then adjusted WDV is to be taken into account for computing STCG on sale of only existing asset in block
Damodaran's Committee submits its report for Reforming the Regulatory Environment for Doing Business
CL : Damodaran Committee Report for Reforming The Regulatory Environment for Doing Business in India
INSTRUCTION dated 16-09-2013
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
INSTRUCTION
New Delhi dated 16th September, 2013
To,
All Chief Commissioners of Customs.
All Chief Commissioners of Customs & Central Excise.
All Commissioners of Customs.
All Commissioners of Customs / Central Excise.
Sir,
Attention is invited to Board Circular No. 14/2009–Cus dated 06.05.2009 which provides that Customs field formations should verify whether the export goods packed with raw or solid wood packaging material comply with the International Standards for Phytosanitary Measures (ISPM No. 15) or are accompanied by a phytosanitary certificate with the treatment endorsed issued by the agencies which are accredited/certified by DAC. This was reiterated vide Board Circular No. 13/2011 – Cus dated 28-02-2011 .
- Despite explicit provisions, it has been reported that in a number of export consignments have been found non compliant by other Customs administrations especially European Union on the ground of non-adherence/infringement of phytosanitary standards prescribed therein. Ministry of Agriculture has repeatedly expressed concerns over increasing number of such cases and desired remedial action be taken to check export of consignments not meeting required phytosanitary specifications i.e. ISPM – 15.
- Board has taken a serious note of it and reiterates that no export consignments packed with raw or solid wood packaging material shall be allowed clearance which is found deficient on meeting phytosanitary requirements ISPM – 15.
- All Chief Commissioners of Central Excise and Customs should ensure that the instruction aforementioned is complied with scrupulously. Non compliance on the part of officers sahall be viewed seriously.
Yours faithfully,
(M.V. Vasudevan)
Under Secretary to the Government of India (Cus.IV.)
F. No.450/19/2005-Cus.IV
Scheme approved by HC even when Co. obtained go ahead from creditors who even didn't participate in
CL: Where none of secured creditors participated in Court convened meeting for approval of scheme of arrangement and thereafter transferor-company obtained no objection from those creditors for approval of scheme, there was compliance of section 391(2)
HC dismisses Vodafone writ petition on TP; elucidates law on jurisdiction of TPO and powers of DRP
IT : Jurisdiction of TPO is inherent under section 92CA(2A) and (2B). DRP can consider whether or not TPO is entitled to exercise jurisdiction; it would have powers to examine unreported transactions once entire draft order is placed before DRP
UTI Bank Limited vs. ACIT (ITAT Ahmedabad)
S. 32: Sale & lease transactions by banks are genuine and eligible for depreciation The assessee, a Bank, purchased windmills worth Rs. 27 crore in a sale-and-lease-back transaction and claimed depreciation thereon. The AO & CIT(A) rejected the claim and held that the transaction was not one of purchase but was a finance transaction in which the windmills were received as security on the basis that (a) under the Banking Regulation Act, 1949, the assessee was not permitted to engage in any business other than banking, (b) the lease rentals were fixed on the basis of interest on advances and other charges receivable by the assessee as a financier and were not co-related to the projected income on the capacity of each wind energy generator, (c) the assessee was not entitled for surplus income on excess generation of power and was not to suffer any loss owing to lesser production or any other contingencies, (d) the return of the assessee on financing was granted by taking interest-free deposit, (e) the assessee had no responsibility of labour, repairs, taxes etc in running of the project and (f) though the purchase of wind energy generators was in the assessee’s name, the land and power purchase agreements with the Electricity Boards were not in its name. On appeal by the assessee to the Tribunal HELD allowing the appeal: |
INCOME TAX APPELLATE TRIBUNAL : KOLKATA BENCHES : KOLKATA CONSTITUTION OF KOLKATA BENCHES FOR THE PERIOD FROM 16.09.2013 TO 20.09.2013
[unable to retrieve full-text content]INCOME TAX APPELLATE TRIBUNAL : KOLKATA BENCHES : KOLKATA CONSTITUTION OF KOLKATA BENCHES FOR THE PERIOD FROM 16.09.2013 TO 20.09.2013 {ad} For more information...
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