Non-consideration of an order which would have been relevant for cross-objection is an apparent mist

IT : Where assessee at time of proceedings had indeed referred to earlier year order which needed to be followed for cross-objections also, non-consideration of same was a mistake apparent from record

INCOME TAX APPELLATE TRIBUNAL,BANGALORE BENCHES,BANGALORE CONSTITUTION FOR THE WEEK COMMENCING FROM 14.10.2013 TO 17.10.2013

[unable to retrieve full-text content]INCOME TAX APPELLATE TRIBUNAL,BANGALORE BENCHES,BANGALORE CONSTITUTION FOR THE WEEK COMMENCING FROM 14.10.2013 TO 17.10.2013 {ad} For more information...

Interest on late payment of ST couldn't be waived off even if short payment was not malafide

ST: Even if short-payment of service tax is not mala fide, interest cannot be waived but, penalties can be waived

If income is offered to tax, concealment penalty can’t be levied for applying wrong rate of tax

IT/ILT: Imposition of penalty upon assessee on account of variation in rate of tax as per article 5 instead of article 12 of DTAA with Canada when there was no change in income declared and income assessed by Assessing Officer, was not justified

Investment in name of major married daughters won't allow sec. 54F or sec. 54B relief to assessee

IT: Where investments were made in name of major married daughter, exemptions claimed under section 54B/54F were not allowed

Cbec To Plead Sc For Relook At Verdict On Bailable Offences

15-Oct-2013

The Central Board of Excise and Customs (CBEC) will make a last-ditch effort to convince the Supreme Court to reconsider its judgement which held that offences under the Customs Act are bailable and an accused cannot be arrested without a warrant.



A review petition filed by the Department of Revenue, under which the Board functions, in August this year was rejected by the apex court which said there was no reason to interfere with the impunged order.



Sources said the revenue department has now decided to file a curative petition before the Supreme Court with the plea that its judgement is "not in consonance" with the provisions of the Customs Act and the Central Excise Act.



The department feels that if the September 2011 judgement of the apex court is not reviewd, it will effect a large number of cases where show cause notices have been issued.



It believes that the offences under the Customs Act cannot be said to be bailable as a customs officer has the power to arrest a person without a warrant.



The apex court had held that offences under the two Acts are bailable. It also said that if a person seeks bail, he will be released on bail in accordance with Section 104 (3) of the Customs Act if he is not wanted in any other case.



The court gave the verdict while examining questions as to whether all offences under the Customs Act and the Central Excise Act are bailable or not.



In its verdict, the Supreme Court had held, "We are of the view that the offences under the 1944 Act cannot be equated with offences under the Indian Penal Code which have been made non-cognizable and non-bailable."



"Language of the Scheme of 1944 Act seems to suggest that the main object of the enactment of the said Act was the recovery of excise duties and not really to punish for infringement of its provisions," the bench had said.

Source:- business-standard.com

India: Onion Exports Fell By 87% In Sept

15-Oct-2013

Onion exports fell sharply by 87 percent to below 20,000 tonnes in September due to government restrictions. Exports were at 1,50,833 tonne in the year-ago period. In the last few months, the government has taken several measures to control onion prices in the domestic retail market, but they continue to be in the range of Rs 60-70 a kg.



It had also raised the minimum export price (MEP) of onions to $ 900 per tonne from $ 650 per tonne to curb outbound shipments. MEP is a benchmark price below which onions cannot be exported. "Exports declined in a significant way in the last two months due to MEP. We exported 29,247 tonne in August and it has further come down to 19,218 tonne in September this year," a senior government official told PTI.



Despite lower quantity of shipments, the country earned Rs 108.96 crore last month as export realisation remained significantly higher at Rs 56,700/tonne as compared to Rs 11,304/tonne in the year-ago period, he said.



In September 2012, India exported 1,50,833 tonne but earned only 170.51 crore. In the first six months of the current fiscal, onion exports fell to 7,16,246 tonne from 10,01,467 tonne in the same period last year.



Even as export volumes are coming down, onion prices in the domestic market continue to rule at unaffordable levels of Rs 60-70 per kg in most retail markets. Domestic supply is being improved through imports as well. But the significant impact on prices are expected to be seen with the arrival of new crop from Maharashtra and other growing states from end of this month.

Source: indiatimes.com

Odisha Ports Gear Up To Resume Operations

The ports in Odisha that had suspended operations due to the severe cyclonic storm Phailin, are gearing up to resume business.



The Paradip Port Trust, which had halted cargo operations in its area on Friday on the eve of the Phailin strike, has started operations partially by allowing small-sized vessels. It will start full scale loading and unloading by Thursday after assessing the damage caused by the cyclone, said officials.



On Monday, the port decided to allow vessels up to a draught of 13 metres, to berth inside the port area for cargo loading and unloading. A total of three vessels were permitted to upload and unload cargo, mainly coal, with a total traffic of 58,200 tonnes. A large part of coal for power generation in Tamil Nadu is shipped via the Paradip port.



Though the port did not report major damage to its properties, officials said the uprooting of some 10,000 trees blocked key roads to its dock area.



Two days before Phailin’s landfall, the port had removed all the vessels inside its berthing area in anticipation of damage to the ships due to speedy winds and a turbulent sea.



As of now, 14 vessels are lined up to load and unload cargo, with eight being coal vessels and two iron ore ships. The port mainly deals with import and export of coal, iron ore, ferrochrome, chromite, fertiliser raw materials, limestone and crude oil. Being the only major port of the area, it serves the eastern and central parts of the country and its hinterland extends to Odisha, Jharkhand, Chhattisgarh, West Bengal, Madhya Pradesh and Bihar.



Between April and September this year, the port handled 34.12 million tonnes of cargo, up from 25.63 million tonnes handled during the corresponding period of the previous year, registering a growth of 33.13 per cent over the previous period. The growth comes mainly from substantial increase in coking coal and iron ore traffic. Among other ports of the state, Dhamra Port Company Ltd (DPCL), which operates a non-major port in Bhadrak district, said it will resume cargo handling operations from Wednesday.



“We have started our site operations on Tuesday after a closure of three days. Since there was no damage due to the cyclone, we will allow vessels to begin arriving from Wednesday,” said a DPCL source.



Dhamara port is the only port in Odisha which can handle Capesize vessels.



Meanwhile, the authorities of Gopalpur port, a minor port, said several portions of the port, including break-water and berth have been damaged in the cyclonic storm.



“The loss however, is yet to be calculated. It will take about one-and-half months to bring normalcy,” said director of Gopalpur Ports Ltd (GPL) M M Moharana.



Two vessels were scheduled to anchor in the port, but GPL has asked them to defer the date of arrival, he added.

Source:- business-standard.com

Copper Promotion Council And Bureau Of Indian Standards Advocates For Revised Electrical Code

15-Oct-2013

International Copper Promotion Council India (ICPCI) in support with Bureau of Indian Standards (BIS) and in association with the Institution of Engineers, Gujarat organised a special session on the Revised 'National Electrical Code India', which kick-started in Hyderabad followed by Bangalore before reaching Ahmedabad. The focus of the meet was bringing to light various provisions related to electrical installation practices in India.



IM Bhavsar, chairman of Gujarat Energy Development Agency (GEDA), Amitabha Sarkar, member of ET 20 Committee of BIS, Amol Kalsekar, chief manager, building wire, ICPCI and Manas Kundu, director, electrical solutions, ICPCI addressed the participants.



"Every individual involved in designing and assembling of electrical installation has to follow certain rules and regulations while installing electrical systems right at inception stage to maintain a degree of safety. The National Electrical Code issued by BIS has undergone revision considering changes in technology, practices and the pattern of usage of electricity in India. To improve electrical safety in India, ICPCI along with other industry experts wants to reach out to the electrical engineers and utilities and impart them with latest provisions in the revised National Electrical Code of India 2011", said Kalsekar.



To reduce the loss of lives and properties and to educate the industry professionals for using the electrical appliances safely, ICPCI along with the panel of experts organised this seminar with the aim of increasing the industry professionals' awareness of various safety measures and precautions while installing, handling, repairing or working on electrical installations and urging them to follow the revised standards. The seminar was attended by more than 120 professionals including electrical engineers, designers, manufacturing associations, power quality equipment suppliers, policy makers, technical officers across various industrial sectors.



Bhavsar said, "With the rising number of buildings, electrical safety awareness is becoming extremely important. Thus it becomes imperative for electrical consultants to follow certain safety rules and regulations while installing electrical equipments in residential buildings, malls, schools, hospitals etc."



ICPCI is a member of Copper Alliance and the Indian arm of the International Copper Association, which is not-for-profit organisation for the promotion of copper worldwide. BIS, the national standards body of India is a leader in all matters concerning standardisation, certification and quality.

Source:- economictimes.indiatimes.com

Indian Cotton Seen Weak On Fresh Supply, Subdued Demand

15-Oct-2013

Supplies from the new harvest have started coming into the local markets in small quantities and are expected to gain pace in the coming weeks, spot traders said.



"Arrivals from the new season crop are expected to keep cotton prices lower in the short term," said Arun Kumar Dalal, a trader from Ahmedabad, a key market in Gujarat. New supplies start from October.



Daily arrivals have been around 50,000-60,000 bales and are expected to reach 90,000 bales by next week, spot traders said.



The government estimated cotton output in 2013/14 at a record high 35.3 million bales as against 34 million bales a year earlier.



Traders' associations and spot traders have forecast cotton output in the range of 37 million to 38 million bales in 2013/14.



According to spot traders, cotton crop in Andhra Pradesh, the third-largest producer state, will not be affected much by cyclone Phailin.



A mass evacuation saved thousands of people from India's fiercest cyclone in 14 years, but aid workers warned a million would need help after their homes and livelihoods were destroyed.



Cotton crop in Andhra Pradesh remained largely unaffected by Phailin, but there could be some cotton crop damage in Odisha, Kotak Commodities said in a research note.



"Demand from millers is weak because moisture content is high in the new supply, while export demand is also subdued," said Dalal.



In September, India withdrew incentives for export of cotton and yarn, a value-added product used by textile mills, a move that could cut exporters' margins in the world's second-biggest exporter of the fibre.



The November cotton contract ended 0.60 percent higher at 20,210 rupees per bale of 170 kg each on the Multi Commodity Exchange.



In New York, the December cotton contract on the Intercontinental Exchange was up 0.16 percent at 83.74 cents per lb

Source:- in.reuters.com

India Could Cut Floor Price For Wheat Exports To Boost Sales

India may soon cut the floor price for exports of wheat from government warehouses by 13 percent, government sources said on Tuesday, which could boost shipments and put downward pressure on benchmark prices in Chicago. The move could come after state-run trading firms in the world’s second-biggest wheat producer after China earlier this month received bids lower than the minimum rate for overseas sales, the sources said.



Government warehouses are awash with wheat, with stocks at 36.1 million tonnes as of October 1, substantially higher than a target of 11 million tonnes. The government also has an extra 3 million tonnes of wheat as strategic reserves. The cabinet in August allowed three government-backed trading companies to export 2 million tonnes of wheat from warehouses at a floor price of $300 per tonne plus taxes.



But in the first round of export tenders, the State Trading Corp. (STCI.NS), MMTC Ltd (MMTC.NS) and unlisted PEC Ltd received bids lower than $300 a tonne. That poor response has prompted the government to consider cutting the price. “We could soon lower the price as we do not want to be seen as too rigid, but at the same time let me tell you that there is a good deal of demand for Indian wheat,” a government official involved in the decision-making process said.



The government could lower the price to $260 a tonne, said another government source who is also part of the process. Traders do not find the price of $300 a tonne viable. “It is the need of the hour to reduce the price of $300 a tonne, because it is neither workable nor competitive,” said Tejinder Narang, an adviser at New Delhi-based trading company Emmsons International. India primarily exports wheat with 11 percent protein content.



For buyers in the Middle East, Indian wheat costs $325 a tonne C&F, while the same variety from the Black Sea region is available at $275-$280 a tonne C&F, traders said. The cabinet earlier in the year had approved exports of nearly 4.5 million tonnes. Its export volumes are paltry in a global trade of nearly 140 million tonnes, but, as global supplies tighten, they will help meet the needs of the biggest buyers of lower-quality wheat in the Middle East and Africa.



India buys rice and wheat from local farmers to supply subsidised food to the poor. The government has recently expanded its food welfare programme to feed 70 percent of the 1.2 billion population.

Source:- firstpost.com

Vegetable Oil Import Bill Likely To Be Low

15-Oct-2013

Import of vegetable oil, one of the top commodities in India’s import bill, has fallen in the first half of this financial year. According to data provided by the Solvent Extractors’ Association of India (SEA), total imports, of edible and non-edible oil (refined and crude), fell 6.25 per cent in volume terms in the first half of the year. During the same period, oil prices fell two to 12 per cent in the international market, keeping a check on the overall bill.



B V Mehta, executive director of SEA, said in the 2011-12 oil year (November-October), the import bill was $10.2 billion. For the 2012-13 year, it is expected to stand at $9.6 billion, as prices, on average, have been 15 per cent lower year-on-year.



In the remaining part of financial year 2013-14, “prices in the international market will remain under check and may also fall marginally, as supplies are higher than demand. For India, a lower price could help improve consumption. In quantity terms, imports may rise but due to the overall lower price, the import bill, in dollar terms, is likely to remain under check in FY14”, Mehta said.



In the first 11 months of the current oil year, vegetable oil imports rose 5.46 per cent to 9.66 million tonnes (mt), compared with 9.16 mt in the year-ago period. If the current trend continues, overall imports could break the psychological barrier of 10 mt this year.



In September, imports declined for a consecutive month, as traders refrained from fresh bookings, amid expectations of further appreciation of the rupee against the dollar. Total imports plunged 13.1 per cent to 8,63,917 tonnes from 9,93,912 tonnes in the corresponding month last year. In August, imports fell 15.5 per cent, data compiled by SEA showed.



In September, the import of refined oil stood at 20 per cent, offering a breather to domestic refiners. In May this year, the share of refined oil to the overall import basked had risen to 42 per cent, and this had forced domestic refiners to idle installed capacities and focus on the trading business. With a steady increase in imports, India's reliance on imported vegetable oil is rising. Imported vegetable oil is primarily used to produce edible oil. It is also used as a raw material in soapmaking. With an estimated 7 mt of production from domestic sources, India meets about 55 per cent of its annual consumption of 16.5 mt through imports, largely from Malaysia, Indonesia and Argentina.

Source:- business-standard.com

Indian Policies Fuel Needless Coal Imports

Tata Power's 1,050-megawatt power station in the state of Jharkhand is a textbook case of the absurd results that India's 1970s-era coal supply laws can produce and why power utilities are lobbying the government to change them.



The Maithon power station is located in the heart of India's vast coal belt, but a shortfall in local fuel supplies has forced Tata to import some of the coal for the plant all the way from Indonesia.



The company has a coal mine nearly ready in the neighbouring state of Odisha, which is meant to feed another power plant, the construction of which has been held up by government red tape. Tata wants, but has so far not got permission, to use coal from that mine to fire the Maithon plant.



The case underscores how restrictive supply policies helped push up India's coal imports to a record high of nearly 138 million tonnes in the last fiscal year.



India sits on top of the world's fourth-largest reserves of the fuel, but it has become the third-biggest coal importer after China and Japan, an estimate by the World Coal Association showed.



That is an anomaly India can ill afford, as the government fights to tame a current account deficit that hit a record high last year and helped knock the rupee to record lows in August.



"At current import prices, we are talking about US$14 billion of coal imports, which is likely to go up to US$25 billion by 2016-17," said Rahool Panandiker, a principal at the Boston Consulting Group. "In this context, when there is a focus on reducing the current account deficit to US$70 billion, every bit of increased coal production contributes to decreasing the [deficit]."



Amid lobbying from private companies, the government set up a committee to look into how to free up supplies of domestic coal and is due to publish its findings this month. However, interviews with government and company officials suggest that no consensus has emerged about how best to proceed.



"There is a very strong need to augment domestic coal supplies and reduce our dependency on imports," said the Association of Power Producers, a powerful lobby group that gave a closed-door presentation last month to the power ministry's top civil servant.

Source:- scmp.com

Rupee Settles Lower At 61.85 Vs Dollar

15-Oct-2013

The rupee ended 30 paise weaker at 61.85 against the dollar due to demand for the American currency from banks and importers, continued impact of weaker inflation data and uncertainty in the US.



The domestic unit opened 20 paise higher at 61.35 against the previous close of 61.55 on the back of firm domestic equity market. However, dollar demand and capital outflows pushed the rupee to 61.93 per dollar during the day.



The expectation of an interest rate hike by the central bank in its second quarter monetary policy on October 29 rose after the September wholesale price index-based inflation data on Monday was reported higher at 6.46 per cent.



Further, investors remained cautious ahead of the US government’s deadline on Thursday to reach a deal on $16.7 trillion debt-ceiling. Both the factors weighed on the rupee.



In addition, BSE-benchmark Sensex ended 59.92 points weaker (0.29 per cent) at 20,547.62 points at day’s close.



Investors will watch out if the US government is able to agree on the debt ceiling deal by Thursday.



The foreign exchange market will remain closed on Wednesday.



The inter-bank call money rate, the rate at which banks borrow from each other to meet their short-term fund requirements, closed a tad higher at 9 per cent against Monday’s close of 8.95 per cent.



The 7.16 per cent government security, which matures in 2023, ended lower at Rs 90.35 against the previous close of Rs 90.86. The yields hardened to 8.66 per cent from 8.57 per cent. Bond yields and prices move in opposite directions.

Source:- thehindubusinessline.com

HC directs winding up of Co. for not paying legitimate dues and for bogus allegation against petitio

CL : Where objections raised by company as regards delayed and short supply of goods were slam and bogus, company was to be wound up for illegally withholding legitimate dues of petitioner

Smart ways to improve your credit rating

The numerical figures of 700 and above are fast forming a superpower club that determines what job you should get, what EMI on your insurance & loan you should pay, and what should be the interest rate on your loan.

It also helps determine your marriage eligibility, phone number eligibility and limit and much more. Thus, whether you are planning to buy a home, car or any other product, or want to get a new credit card, your credit score has immense affect on your loan processing as also determining the credit limit.

A credit score, in fact, is a 3-digit number that shows numeric summery of your credit health. Such score is derived by credit bureaus by analyzing your credit history. The score usually ranges from 300 to 900 points and higher scores suggest more chance of getting approval of your loans. But what is a good enough score?

"A score above 700 usually suggests good credit management. A person's credit history, in fact, is a record of how he/she has used and managed credit in the past. Every financial transaction in your life involving credit is recorded in your credit history - from your payment history on your credit card, to your history on paying off your car loan, to any suits that may have been filed on you," explains Arun Ramamurthy, co-founder, Credit Sudhaar, a credit health improvement company which aims at helping individuals become credit healthy.

In India credit scores are calculated by credit information companies such as CIBIL, Equifax and Experian.

Ramamurthy says that credit awareness in India has a long way to go. In fact, Credit Sudhaar conducted a survey across 8 cities in India and sampled over 300 respondents, and found out that more than 85% of the respondents were not aware of credit bureaus. Delhi and Pune led the country with 1 out of 4 respondents being aware of credit bureaus. Bur a whopping 92% of respondents were unaware of their credit scores.

Delhi, Bangalore and Pune had more than 10% respondents knowing their score. The survey revealed that 91% of the customers were not aware of the impact of non-payment of credit dues. While a mere 4% had reviewed their credit score in the last 1 year, 98% of the respondents who took the survey were unable to comprehend the report that was shared with them.

This explains why you not only need to know about your credit rating, but also the ways to repair the same. Here are some tips to improve your credit scores:

Check your credit report:

Credit score repair begins with your credit report. Thus, the first thing to do is to request a free copy of your credit report and check it for errors. "In particular, check to make sure that there are no late payments incorrectly listed for any of your accounts and that the amounts owed for each of your open accounts is correct. Resolve the errors, if any, immediately with the credit bureau and reporting agency," says Gaurav Wadhawani, co-founder, Credit Sudhaar.

Regular payment of bills:

Many people are still not aware of the fact that as simple as paying bills - even phone bills -- on time can play a very important role in improving the credit score. Your payment history on your credit health report amounts to almost 35% of your total score. So, prevention is better than cure. Therefore, it is important to be consistent with the payment of utility bills. "To have a good score, you need to maintain no late payment status for at least seven years," says Wadhawani.

Pay off a debt:

Another easy method to improve the credit score is by start paying off older loans or debts. Even if the debt amount is small, it is essential to get rid of it by making the payment on time. Minimization of outstanding debt helps to improve the credit score.

Less credit cards and less use:

Although having a credit card can actually help you in being an eligible applicant for loans, however, owning numerous credit cards and making huge purchases with them can reverse the situation. Bad credit scores can be improved by reducing the use of credit cards as well as avoiding having too many credit cards. The ideal would to be use between 10% and 20% or less of the total credit available.

ITAT sets aside order of DRP as it confirmed TP adjustments without hearing assessee and his objecti

IT/ILT : Where in course of transfer pricing proceedings DRP confirmed impugned adjustment made by TPO in respect of various divisions of assessee-company without disposing of assessee's objections by giving cogent reasons, order so passed was to be set aside and matter was to be remanded back for disposal afresh

Discounts given by treasury office to stamp vendors aren't a commissions to invoke sec. 194H

IT: TDS liability under section 194H would not arise on sale of stamp paper on discount by Treasury Office to licenced stamp vendors

Revenue couldn't be punished for pursuing its statutory function even if assessee felt discomfort th

IT: If identity of non-resident remitter is established and money has come in through banking channels, it cannot be treated as deemed income under section 68 or 69

Vessel operating within India is eligible for 'Tonnage Tax Scheme'; no sec. 14A disallowance under t

IT : Ship, transporting coal from one port to another within India, would be a qualifying ship for Tonnage Tax Scheme (TTS)

RBI authorizes banks to close old outstanding Export Bills

FEMA/ILT : Closing of Old Outstanding Bills: Export-Follow-Up - XOS Statements

No tax on FTS if service utilized for business carried abroad; upgradation of existing website is re

IT/ILT : Expenses incurred for upgradation of an existing website should be distinguished from expenses for development of a new website. The former is revenue expenditure. The latter is capital expenditure resulting in creation of an intangible asset. Expenditure on upgradation of existing website is revenue as it is equivalent to maintenance of an existing asset

Approval of Commission is must if combination likely to cause adverse effect on competition in India

Competition Act: Approval of proposed combination by Commission granted if same was not likely to have an appreciable adverse effect on competition in India

No question of law involved if ITAT confirmed estimation of turnover by CIT(A) which was based on fa

IT: When Tribunal reduced turnover estimated in best judgment assessment on basis of various factors and considering relevant material, there was no infirmity in Tribunal's order

Assessee can't be slapped with a demand notice due to procedural irregularity in payment of challan

ST: Though assessee had paid 'service tax' under 'central excise' registration and challans did not contain any unit-wise reference, but, since total service tax paid tallied with sum demanded by department, demand was liable to be set aside

Delay caused by CA in providing his opinion of filing of appeal was not sufficient to condone delay

IT: Time taken in discussion with Chartered Accountant to decide whether or not it was a fit case for filing appeal in High Court, could not be sufficient cause for condoning delay of 695 days in filing appeal before High Court

Nothing wrong if President lets out his property to its trust which provides some incidental benefit

IT : Where President and Secretary of Trust rendered voluntary service and, therefore, premises owned by them was taken on rent which saved cost, exemption could not be denied on ground of giving them of personal benefit by way of rent