HC sets aside reassessment as AO initiated it without considering reasonings given by assessee

IT : Where revenue rejected elaborate written objection filed by assessee against reasons recorded by Assessing Officer for initiating reassessment for disallowing claim of deduction under section 10B by merely saying that reasons already attributed were just and reasonable, reassessment would be unsustainable

Investors shouldn't be in a hurry to exit

It may be Diwali time, but the firecrackers will still have to wait for the average investor. With the rally skewed completely in favour of select stocks and sectors, investors haven't benefited in a big way because of the sensex rally. They would have to tread cautiously and it would be difficult to reap handsome gains.

Here are five points that investors can consider while navigating the swift changes in the market environment:

Invest in diversified funds: Diversified equity funds haven't done well in the current rally. But they present a good investing opportunity as they are yet to recover lost ground, say experts. "Investors can opt for diversified funds and value-oriented themes," says Rupesh Nagda, senior VP and head (investment advisory), Alchemy Capital Management. "There are a large number of stocks that are undervalued. When the (real) revival happens, they would offer superior returns," he says.

Don't quit equity with measly gains: For all those who are seeing profits from equity investments after nearly three years, the urge to exit would be irresistible. Advisers, however, caution that investors should not exit equity funds in a hurry after making small returns.

"When the markets turn around, the feel good (factor) comes back. But many lay individual investors exit with 5-10% returns and come back at higher levels," says Sumeet Vaid, founder and CEO, Ffreedom Financial Planners. These investors lose out when the markets make a strong recovery. But the rally offers investors with short-term goals a good window to make profits, say experts.

Keep asset allocation intact: This cardinal principle of investing holds good both in times of crises and when the markets are on a strong wicket. "Keep your broad asset allocation intact as different asset classes would do well at different points of time," says Suresh Sadagopan, founder, Ladder7 Financial Advisories. "Investors can do a tactical rejig or reallocation in their portfolio but should not dramatically change their asset allocation," he says.

'Beaten-down' doesn't mean 'value': Several sectors that have taken a beating haven't recovered in any significant manner. But beaten-down sectors and stocks don't necessarily offer value for investors, say advisers. For instance, the fundamentals for the infrastructure sector, which is one of the worst performers in the last three years, have not changed, they say. "Investors should look at companies with positive cash flows, low debt and good business model," says Nagda.

Don't get carried away: Lastly, investors should not get carried away by the current rally as it is being driven by liquidity, say experts. "It is not a broad-based rally and is not driven by fundamentals. The economy is still not in a great shape," Sadagopan says.

Exp. of earlier years allowable in current year if crystallized during that year; re-assessment quas

IT : Expenses of earlier years allowable in current year if crystallized during that year; re-assessment quashed

Sum paid to NR for canvassing business abroad isn’t taxable in India even after amendment to sec. 9(

IT/ILT : Sum paid to NR for canvassing business abroad is not taxable in India even after amendment to section 9(2) by Finance Act, 2010

Exp. incurred on marble flooring in a factory premise isn't allowable as current repairs, rules HC

IT: Expenditure for laying/fixing marble flooring of entire factory building cannot be allowed as current repairs

Asia's Iran Oil Imports Fall 11.5 Pct In Jan-Sept

Iran's top four crude buyers cut their purchases by 11.5 percent in the first nine months of the year, with oil shipments set to remain under pressure from sanctions despite tentative signs of better relations between Tehran and Washington.



Western sanctions have forced China, India, Japan and South Korea to reduce their reliance on Iranian oil, more than halving the OPEC nation's exports since early 2012 and costing it billions of dollars a month in lost revenue.



The four major Asian buyers between January and September imported 953,567 barrels per day (bpd) of Iranian crude, down 11.5 percent from the same nine months in 2012, according to government statistics and oil tanker arrival schedules.



In the month of September, they imported 1,161,304 bpd of Iranian oil, a 30.2 percent jump from a year ago.



The European Union and the United States believe Iran is developing nuclear weapons, while Iran says its programme is for power generation.



Since the beginning of 2012, U.S. and European sanctions have cut Iran's oil exports in half to about 1 million bpd.



Iran and six big powers began expert-level talks on Wednesday, building on diplomatic momentum created by a pragmatic shift in Tehran towards negotiating a peaceful solution to the dispute over Iranian nuclear ambitions.



However, despite much friendlier contacts between the sides since Hassan Rouhani took office as Iranian president with a pledge to reduce tension with the West, major differences remain to be overcome for any breakthrough deal to be reached.



Top White House administration officials have been pushing U.S. lawmakers to hold off on new sanctions over Iran's nuclear programme, but some key lawmakers said on Wednesday they had not been convinced to support a delay in putting in place new measure aimed at Tehran.

Source:- reuters.com

Rubber ‘Capital’ Goes On Hartal Seeking Ban On Imports

30-Oct-2013

A Left Democratic Front-backed rubber farmers’ hartal in Kerala’s Kottayam district, the nerve-centre of rubber production and trade in the country as well as the seat of the Rubber Board, left several businesses and offices closed and sent most of the public transport off the road on Wednesday.



The hartal, which was against the backdrop of the sharp fall in the prices of natural rubber, was to ask the Centre to wind down rubber imports and impose 20 per cent import duty as had been decided earlier this year.



The hartal, called by the farmers’ wings of the Opposition CPI (M) and its partners in the Left Front, was enforced only in Kottayam district. Most shops and businesses remained closed in the district headquarters and key towns, while in the interior areas, it partially impacted public life. While inter-district buses run by the Kerala State Road Transport Corporation were allowed to run, those operating within the district stayed off. Most government offices reported thin attendance.



Mahatma Gandhi University, which has its headquarters in Kottayam, cancelled all examinations scheduled for Wednesday.



M.T. Joseph, the front’s convenor in Kottayam district, told Business Line that the hartal was near-total. He said that rubber prices had fallen by around Rs 40 a kg within a month and over the last one year by about Rs 100. He said that the fall was due to the pro-tyre-lobby import policy of the Centre. Imports had risen to unprecedented levels, thus dipping domestic prices.



Joseph said that while the domestic prices had fallen, the tyre industry, the main consumer of rubber, had jacked up the prices of tyres.



He also said that the Centre had, in February, decided to impose 20 per cent duty on rubber imports, but was yet to enforce the increased duty rate. He wanted the Government to immediately enforce the duty.



He claimed that rubber farmers can meet up to 93 per cent of the demand of the Indian industry and hence, there was no need for imports.



The current domestic price is below Rs 160 a kg (for RSS-4), and because global prices are lower, the tyre industry prefers to import.

Source:- thehindubusinessline.com

U.S. Says Germany's Export Dependence Hurts Global Economy

The United States reprimanded Germany on Wednesday, saying its exporting prowess was hampering economic stability in Europe and also hurting the global economy.



The U.S. Treasury Department said Germany should focus more on boosting domestic growth in order to make the European economy more stable.



"Germany's anemic pace of domestic demand growth and dependence on exports have hampered rebalancing (of the euro zone economy)," the Treasury said in a congressionally mandated semi-annual report.



"The net result has been a deflationary bias for the euro area, as well as for the world economy," it said in the report.



Deflation is one of the most worrisome forces in economics and refers to persistent drops in wages and prices.



For years, the currency report has been an occasion for the U.S. government to publicly criticize China's foreign exchange practices, but this time Germany appeared to eclipse the Asian giant in terms of prominence within the report.



The Treasury noted, for example, that Germany's net exports of goods, services and capital exceeded those of China in 2012. The policy recommendations for Germany also topped the list of actions Washington feels are necessary to make the global economy more stable.



As has been customary for over a decade, the Treasury stopped short of formally labeling China as a currency manipulator. It retained its description of the yuan currency as "significantly undervalued" - a perennial complaint among U.S. politicians and companies because a weak yuan makes Chinese exports cheaper in the United States at the expense of American factories.



However, the Treasury also noted that the recent appreciation of the yuan was "good for the U.S. economy," and called on China to allow the yuan to appreciate more quickly.



The Treasury also said it was closely following Japanese economic policies to determine whether they are geared toward boosting domestic demand.

Source:- reuters.com

Volkswagen Commences Vento Exports To Mexico

30-Oct-2013

Volkswagen India Pvt. Ltd. will export the Vento sedan to Mexico, making it the single largest export market for Volkswagen India, the company said in a statement on Wednesday.



Volkswagen India began exporting cars manufactured at its Pune plant in 2011 with shipments to South Africa and entered the left-hand drive market in 2012 with exports to West Asia.



The next big step in its growth strategy is the expansion of exports of the left-hand drive Vento to the Mexican market, the company said. In a full production year, every second car from the export volumes manufactured at the Pune plant will go to Mexico, making it the single largest export market for Volkswagen India, the company said.

The production of the left-hand drive Vento for the Mexican market has begun and the first lot of cars has already been despatched. It will go on sale in November.

“The Vento was specifically designed and built for Indian customers. However, its success in a competitive market like India has opened up doors for exporting this car to various other markets,” said Mahesh Kodumudi, president and managing director at Volkswagen India.



In the absence of any new model and with increasing competition, Volkswagen’s sales in the domestic market have been under pressure. In the five months from April to August, sales declined 3% to 24,582 units, according to the Society of Indian Automobile Manufacturers. However, exports rose four-fold—albeit on a low base—to 9,528 units in the same period.

Source:- livemint.com

Wheat Export Floor Price Cut By $40/Tonne

To enable swifter movement of wheat stocks from state warehouses, the Cabinet decided on Wednesday to reduce the export floor price from $300 a tonne at present to $260 a tonne. And, to allow export till June 31, 2014, instead of March 31, 2014.



It also okayed a new Pharmaceutical Purchase Policy for central public sector units , for 103 drugs from state-run companies to be used in hospitals and through its welfare programmes at a discounted rate. The list of medicines may be reviewed and revised by the department as needed.



In wheat export tenders floated by state-owned MMTC, STC and PEC last month for export of 160,000 tonnes, global buyers had offered only $260-267 a tonne against the government's floor of $300 a tonne. This floor was approved in August by the Cabinet Committee on Economic Affairs (CCEA); it okayed export up to two million tonnes from Food Corporation of India godowns in this financial year, through STC, MMTC and PEC. As on October 1, Food Corporation of India had a wheat stock of 36 mt, against a requirement of only 21.2 mt.



The CCEA also approved a new Integrated Processing Development Scheme for the textile sector, with a total cost of Rs 500 crore in the 12th Plan. This is to address environmental issues faced by textile processing units.



Also, the cabinet decided to confer international airport status to those at Bhubaneswar and Imphal.



Post facto approval was also given to some amendments in the Food Security Bill, including extension of the deadline for implementing the law to one year from the earlier six months.

Source:- business-standard.com

Govt May Reconsider Miners’ Demand For Export Duty Cut

30-Oct-2013

The Government may reconsider domestic miners’ demand for a cut in export duty on iron ore with exports of the metal continuing to decline.



The Commerce Ministry plans to compile fresh data for iron ore exports over the last two months and revisit the matter with the Finance Ministry since the advantage of a weak rupee, which exporters enjoyed in the previous months, has been neutralised, a senior official told Business Line.



Last month, the Finance Ministry had turned down a proposal forwarded by the Commerce and Mines Ministries favouring a cut in export duty of 30 per cent on iron ore to boost shipments.



Exports of iron ore have been severely hit over the past two years due to the Supreme Court ordering probes into alleged cases of illegal mining in Karnataka and Goa.



Exports of iron ore fell from a high of 117.4 million tonnes in 2009-10 to 18 million tonnes in 2012-13.



When the Finance Ministry had considered the proposal for export duty cut some months ago, it had argued that there was no need for the move as exporters were already benefiting from a depreciating rupee, the official said.



“Since the rupee had already devalued by about 15 per cent from 58-59 to a dollar when miners’ had forwarded their request to about 68-69 to a dollar when the Finance Ministry considered it, it therefore reasoned that there was no need for a cut in export duty,” the official explained.



Depreciation in the value of the rupee against the dollar helps exporters as their realisation goes up when they convert the dollar payments received into rupees.



Moreover, the Steel Ministry had also lobbied against a reduction in import duty, claiming that it would lead to an increase in raw material prices for domestic steel producers.



However, now that the rupee has appreciated over the last couple of months and is hovering between 61 and 62 to a dollar, the Commerce Department feels that there may be a case again for reduction in export duties on iron ore.



“We are in the process of collecting export data over the last two months to make a fresh case for export duty reduction,” the official said.



India’s iron ore exports have declined 54 per cent to 6.8 million tonnes for the six months (April-September) of the current fiscal. In the corresponding period last fiscal, India exported 14.65 million tonnes.

Source:- thehindubusinessline.com

Stc To Import 6 Tonnes Of Gold To Meet Festival Demand

30-Oct-2013

State-run STC will import six tonnes of gold to boost supply of the precious metal in the domestic market during the festival season, an official said.



"There is supply crunch (in India) and demand is also higher because of the festival season. ...we have have been allocated to import 6 tonnes of gold in two tranches to meet the rising demand," a senior STC official told PTI.



The allocation order has been issued by the Directorate General of Foreign Trade (DGFT), he added.



Gold in the domestic market is being sold at a high premium as there is a supply crunch due to import curbs imposed by the government. India is the world's largest consumer of gold.



State Trading CorporationBSE 2.26 % (STC) is one of the gold import agencies in the country. It has been allowed to import the metal with a condition that it will supply 20 per cent of the shipment to exporters.



STC said said it will import gold worth Rs 15,000 crore this fiscal, the same as last year.



In order to contain current account deficit, the government has imposed several restrictions on gold imports in the past few months. In August, import duty was raised to 10 per cent from 8 per cent. It also banned import of gold bars, coins and medallions.



The country has imported 393.68 tonnes of the yellow metal during the April-September period of this year, as per official data.

Source:- economictimes.indiatimes.com

Rupee Edges Lower Tracking Broad Dollar Gains After Fed Meet

The rupee is trading at 61.43/44 versus its close of 61.2350/2450, hurt by broad gains in the dollar following the U.S. Federal Reserve's decision to keep its massive bond-buying stimulus in place.



The dollar trading at around two-week highs against a basket of six major currencies.



The BSE Sensex trading down 0.2 percent.



Traders expect the pair to hold in a 60.90 to 61.80 range until the end of next week.



Budget deficit data for April-September due at 1600 IST will be watched closely by dealers.

Source:- reuters.com

No abuse of dominance on failure to deliver possession of residential unit in time

Competition Act: In absence of dominance of opposite party (OP) in relevant market, its failure to deliver possession of residential unit within specified time would not amount to abuse of dominance by OP

RBI cuts penal interest rates on shortfall in reserve requirements

BANKING : Revised Bank Rate

RBI asks commercial banks to carry out due diligence even if they offer ‘at par’ facility to co-oper

BANKING : Due Diligence in Correspondent Banking Relationship

Salary paid to seconded employees doesn’t ‘make available’ any technology; No FTS arises under India

IT/ILT: Expatriation of employees under seconded agreement without transfer of technology would not fall under term make available as per article 13(4)(c) of Indo-UK DTAA, and therefore, payment made by assessee towards salary expenditure of employees deputed to assessee under seconded agreement could not be considered as fees for technical services

Order dated 29-10-2013

Government of India

Ministry of Finance

(Department of Revenue)

Central Board Excise & Customs

*****

ORDER

New Delhi, dated the 29^th October, 2013

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice F.No.DRI/AZU/INQ-63/2013 dated 30.09.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Zonal Unit, Ahmedabad in the case of M/s Apollo Tyres Ltd., 7 Institutional Area, Sector 32, Gurgaon-122001 to the Commissioner of Customs, Ahmedabad for the purpose of adjudication.

(M.V. Vasudevan)

Under Secretary to the Government of India

F.No.437/87/2013-Cus-IV

Copy to:-

1. The Additional Director General, DRI, Ahmedabad Zonal Unit, Ahmedabad-380007.


2. The Commissioner of Customs, Custom House, Ahmedabad, Near all India Radio, Income Tax Circle, Navrangpura, Ahmedabad-380009


3. The Commissioner of Customs, Cochin Sea Port, Custom House, Willingdon Island, Cochin-682009.


4. The Commissioner of Customs(Export), Chennai Sea Port, Custom House, 60, Rajajisalai, Chennai-600001.


5. Webmaster.cbec@icegate.gov.in

Order dated 29-10-2013

Government of India

Ministry of Finance

(Department of Revenue)

Central Board Excise & Customs

*****

ORDER

New Delhi, dated the 29^th October, 2013

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice F.No.DRI/AZU/INQ-64/2013 dated 23.09.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Zonal Unit, Ahmedabad in the case of M/s Balkrishna Indistries Ltd., “BKT House”, C/15, Trade World, Kamla Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai-400012 to the Commissioner of Customs, (Export), Jawaharlal Nehru Custom House, Nhava Sheva, Raigad for the purpose of adjudication.

(M.V. Vasudevan)

Under Secretary to the Government of India

F.No.437/86/2013-Cus-IV

Copy to:-

1. The Additional Director General, DRI, Ahmedabad Zonal Unit, Ahmedabad-380007.


2. The Commissioner of Customs, Custom House Kandla, New Customs Building, Nr. Balaji Temple, Kandl, Kutch, Gujarat-370210.


3. The Commissioner of Customs, (Export), Jawaharlal Nehru Custom House, Nhava Sheva, Raigad.


4. Webmaster.cbec@icegate.gov.in

Order dated 29-10-2013

Government of India

Ministry of Finance

(Department of Revenue)

Central Board Excise & Customs

*****

ORDER

New Delhi, dated the 29^th October, 2013

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice F.No.DRI/MZU/ GRU/INV/04/2012 dated 03.09.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Mumbai. Zonal Unit, Mumbai in the case of M/s BGH Exim Ltd., 213, 2nd Floor, T.V. Ind. Estate,52, S.K. Ahire Marg, Worli, Mumbai-400030 to the Commissioner of Customs , Central Excise & Service Tax, Plot No.6, ICE House, EDC Complex, Patto Panaji-403001 for the purpose of adjudication.

(M.V. Vasudevan)

Under Secretary to the Government of India

F.No.437/85/2013-Cus-IV

Copy to:-

1. The Additional Director General, Directorate of Revenue Intelligence, Mumbai Zonal Unit, UTI Building, 13, Vithaldas Thackersey Marg, New Marine Lines, Mumbai-400020.


2. The Commissioner of Customs , Central Excise & Service Tax, Plot No.6, ICE House, EDC Complex, Patto Panaji-403001.


3. The Additional Commissioner of Customs, Custom House, Near Balaj Temple, Kandla-370210.


4. The Additional/Joint Commissioner of Customs, Central Excise & Service Tax, C.R. Building Kannavari Thota, Guntur -520004.


5. The Commissioner of Customs, Custom House, Port Area Vasakhpatnam-530035


6. Webmaster.cbec@icegate.gov.in

Order dated 29-10-2013

Government of India

Ministry of Finance

(Department of Revenue)

Central Board Excise & Customs

*****

ORDER

New Delhi, dated the 29^th October, 2013

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 (as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice F.No.DRI/AZU/INQ-66/2013 dated 29.08.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Zonal Unit, Ahmedabad in the case of M/s Indian Farmers Fertilizer Cooperative Ltd., IFFCO Sadan, C-1, Distt. Centre, Saket Place, New Delhi-110017 to the Commissioner of Customs, Kandla for the purpose of adjudication.

(M.V. Vasudevan)

Under Secretary to the Government of India

F.No.437/83/2013-Cus-IV

Copy to:-

1. The Additional Director General, DRI, Ahmedabad Zonal Unit, Ahmedabad.


2. The Commissioner of Customs, Custom House Kandla, New Customs Building, Nr. Balaji Temple, Kandla, Kutch, Gujarat-370210.


3. The Commissioner of Customs, New Custom House, Panambur, Mangalore-575010.


4. The Commissioner of Customs (Preventive), Jamnagar, “Sarda House”, Bedi Bandar Road, Opp. Panchvati, Jamanagar-361002.


5. The Commissioner of Customs, Visakhapatnam, Custom House, Port Area, Visakhapatnam, Andhra Pradesh-530035.


6. The Commissioner of Central Excise & Customs, Visakhapatnam-II, Central Excise Building, Port Area, Visakhapatnam, Andhra Pradesh-530035.


7. Webmaster.cbec@icegate.gov.in

Order dated 29-10-2013

Government of India

Ministry of Finance

(Department of Revenue)

Central Board Excise & Customs

*****

ORDER

New Delhi, dated the 29^th October, 2013

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 (as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice DRI F. No. 23/61/2011-DZU/2245 to 2251 dated 03.05.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Delhi Zonal Unit, New Delhi in the case of M/s Indian Oil Corporation Ltd., Panipat Refinery, Post Office-Panipat Refinery, Panipat, Haryana-132140 and M/s Samsung Engineering Co. Ltd., Korea at Lot No.7, Advant Navis Business Park, Level 12-15, Tower A, Sector 142, Expressway Noida,UP-201305 to the Commissioner of Customs, New Custom House, Ballard, Estate, Mumbai for the purpose of adjudication.

(M.V. Vasudevan)

Under Secretary to the Government of India

F.No.437/52/2013-Cus-IV

Copy to:-

1. The Additional Director General, Directorate of Revenue Intelligence, Delhi Zonal Unit, B-3 & B-4, 6th Floor Paryavaran Bhawan, C.G.O. Complex, Lodhi Road, New Delhi-110003.


2. The Commissioner of Customs,(Port), Nhava Sheva, Mumbai;-400707.


3. The Commissioner of Customs (I&G), New Custom House, IGI Airport, New Delhi–110037.


4. The Commissioner of Customs, New Custom House, Ballard Estate, Mumbai.-400038.


5. The Commissioner of Customs, Air Cargo Complex, Sahar, Mumbai-400099.


6. Webmaster.cbec@icegate.gov.in

DGFT Public Notice No.34/(RE 2013)/2009-14 dated 29-10-2013

35

Novatech Inspection Services LLC Head Office, UAE Post Box: 96149, Damascus Street, Dubai, UAE Tel:+971-52 8630284 E Mail: novatech.uae@gmail.com Branch Office, Saudi Arabia Al Nuzaha District Sixteen, Near Mall of Arabia, Box: 21462, Jeddah, Saudi Arabia Tel:+966 552357963 Branch Office, Bahrain Road No. 3911, Riffa, Block 939, P.O. Box:24239, Bahrain. Tel: +973 33917677 Branch Office, Qatar Sanaiyya, Gate No.84, Street No.39, Industrial Area, Doha, Qatar. Tel: +974 55157552 Branch Office, Kuwait Saud Al –Shallahi Complex Jleeb Shoukyh, Kuwait. Tel: +965 69938000 Branch Office, Oman Near Al Harthy Complex Mabaila Industrial Area, Muscat, Oman. Tel: +968 99829570 Branch Office, Jordan 14 Sufian Bn Oyayna Street, AQABA, Jordan. Tel: +962 785565208 Branch Office,Yemen Al Mowsalaat Street, Opp Teleyemen, Sana’a, Yemen. Tel: +967 711712008 Branch Office, USA 4800 Sugar Grove Blvd, Ste 475 Stafford, TX 77477, USA. Tel: +1-281-4944940 Branch Office, Mexico 1876, Pinal, Ciudad Juarez, Chihuahua, Mexico, Pin code: 31-3384578. Tel: +52-656-6837296 Branch Office, Canada 926, Fluteway, Mississauga, Ontario, Canada, Pin code-L4T 0A1. Tel: +190-56-709839 Branch Office, Japan SS3-6-5 Matsuzaki-cho, Abeno-ku, Osaka, Japan, Pin code – 5340013. Tel: +81-6-6624-2388 Branch Office, Kenya Pegant Godowns, No.2,3,4,5,6, Airport North Rd., Nairobi, Kenya. Tel: +254-733-393200 Branch Office, Tanzania Plot No.111, Upanga, Dar-es-Salaam, Tanzania. Tel: +255-713 703609 Branch Office, Uganda Plot 3, Berkeley Road, Old Kampala, Kampala, Uganda. Tel: +256-772 873694

UAE Saudi Arabia Bahrain Qatar Kuwait Oman Jordan Yemen USA Mexico Canada Japan Kenya Tanzania Uganda

37

Trans Border Safety Control Inspection Services LLC Head Office 20C, Trolley Square, Wilmington, Delaware, 19806 U.S.A. Tel: +1-6462334839 E Mail: info@transborderinspection.com Branch Office, South Africa Transnet Yard, Kennis Street, Elandsfontein, 1406 Gauteng, Johannesburg, South Africa Tel:+27-797632759 E Mail: girish@transborderinspection.com Branch Office, UAE (Dubai) 2305 Grosvenor House, Sheikh Zayed Road, Dubai, UAE Tel: +971-503591955 E Mail: rajendra@transborderinspection.com Branch Office, West Africa BP.3901, Nouakchott, Mauritania Tel: +222-52448725 E Mail: naresh@transborderinspection.com Branch Office, European Union SpaldingstraBe 160 – Hamburg, Germany Tel: +49-46903265 E Mail: debbie@transborderinspection.com

USA South Africa UAE (Dubai) West Africa European Union

Order dated 29-10-2013

Government of India Ministry of Finance (Department of Revenue) Central Board Excise & Customs ***** ORDER New Delhi, dated the 29th October, 2013 In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notices mentioned in column (2), issued by the authorities mentioned in column (3) in the case of parties mentioned in column (4) of the Table below, to the Commissioner of Customs, New Delhi for the purpose of adjudication. Sl.No. Show Cause Notice No. and dated Issuing Authorities Parties (1) (2) (3) (4) 1. S/IV/32/2011 ACC, Chennai dated 12.04.2013 Additional Director, Directorate of Revenue Intelligence, Bangalore M/s Sony India Private Limited 2. S/IV/32/2011 ACC, Kolkata dated 12.04.2013 Additional Director, Directorate of Revenue Intelligence, Bangalore -do- 3. S/IV/32/2011 ACC, Mumbai dated 12.04.2011 Additional Director, Directorate of Revenue Intelligence, Bangalore -do- 4. S/IV/32/2011 Chennai Sea dated 15.04.2013 Additional Director General, Directorate of Revenue Intelligence, Bangalore -do- 5. S/IV/32/2011 SONY/NDLS dated 15.04.2013 Additional Director General, Directorate of Revenue Intelligence, Bangalore -do- 6. S/IV/32/2011 Nhava Sheva dated 12.04.2013 Additional Director, Directorate of Revenue Intelligence, Bangalore -do- 7. S/IV/32/2011 Dadri dated 12.04.2013 Additional Director, Directorate of Revenue Intelligence, Bangalore -do 8. S/IV/32/2011 ACC, B’lore dated 15.04.2013 Deputy Director, Directorate of Revenue Intelligence, Bangalore -do- 9. S/IV/32/2011 / Kochi dated 15.04.2013 Deputy Director, Directorate of Revenue Intelligence, Bangalore -do- 10 S/IV/32/2011 / Kolkata Sea dated 15.04.2013 Deputy Director, Directorate of Revenue Intelligence, Bangalore -do- (M.V. Vasudevan) Under Secretary to the Government of India F.No.437/41/2013-Cus-IV Copy to:- The Additional Director General, Directorate of Revenue Intelligence, Bangalore. The Commissioner of Customs, Port-Import, Chennai. The Commissioner of Customs (Import & General), New Delhi. The Joint/AddI Commissioner of Customs (Import), Nhava Sheva. The Joint/AddI Commissioner of Customs, ACC, Group 5, Mumbai. The Joint/AddI Commissioner of Customs, ACC, Kolkata. The Asst/Deputy Commissioner of Customs, Port-Import, Kolkata. The Asst/Deputy Commissioner of Customs, Cochin. The Joint/AddI Commissioner of Customs, ICD Dadari, Noida. The Asst/Deputy Commissioner of Customs, ACC, Bangalore. The Joint/AddI Commissioner of Customs, Airport & Air Cargo, Chennai.. Webmaster.cbec@icegate.gov.in

Order dated 29-10-2013

Government of India

Ministry of Finance

(Department of Revenue)

Central Board Excise & Customs

*****

ORDER

New Delhi, dated the 29^th October, 2013

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice DRI F.No.718(ii)10/Seiz/PRU/2013-14/379-382 dated 23.05..2013 issued by Additional Director General, Directorate of Revenue Intelligence, Zonal Unit, Lucknow in the case of M/s ABB Limited, Khanija Bhawan, 2^nd floor, East Wing, 49, Race Course Road, Bangalore-560001 to the Commissioner of Customs, C.R. Buillding, Queens Road, Bangalore-560001 for the purpose of adjudication.

(M.V. Vasudevan)

Under Secretary to the Government of India

F.No.437/62/2013-Cus-IV

Copy to:-

1. The Additional Director General, Directorate of Revenue Intelligence, Lucknow Zonal Unit, 2/31, Vishal Khand, Gomti Nagar, Lucknow-226010.


2. The Commissioner of Customs, C.R. Building, Queen Road, Bangalore-560001.


3. The Additional/Joint Commissioner of Customs, ICD CONCOR, Kanakpura, Jaipur at New Central Revenue Building, Statue Circle, ‘C’ Scheme, Jaipir-302005.


4. The Deputy/Assistant Commissioner of Customs at O/o of Commissioner of Customs (Port-Import), Jawaharlal Nehru Custom House, Nhava Sheva, Talulka-Uran, Dist- Raigad, Maharashtra-400707.


5. Webmaster.cbec@icegate.gov.in

Declaration as to inputs used for export of services is a procedural compliance; delay thereof can b

ST: As regards rebate claim on input/input services used for export of services, requirement of filing of declaration under Notification No. 12/2005-ST is of procedural nature and delay, if any, can be condoned.

Lower profits display entity’s performance and not quality of its books; rejection of books on this

IT: Profit being low could not be a ground for rejection of books of account

Stay granted by Supreme Court against a Sec. 133 notice applies to notice issued subsequently to ano

IT: Order of Apex Court staying notices issued under section 133 to various societies in similar matters would be applicable to notice in case of assessee-society

Concealment penalty can be levied even if assessed income is a loss, rules HC

IT: Penalty under section 271(1)(c) can be imposed even in a case where assessed income is a loss

Converting a leasehold property into freehold improves title of asset; holding period reckoned from

IT: Conversion of rights of lessee in property from leasehold right into freehold only results in improvement of his/her rights over property and it would not have any effect on taxability of gain from such property, which is related to period over which property is held

M/s Natural Bio Organic Product B/2, Golden Plaza, Ankur Char Rasta, A.K. Road, Surat. Vs. Income Tax Officer (OSD), Range 9, Surat

1 ITA No 2399/Ahd/2009 . A.Y. 2006-07 IN THE INCOME TAX APPELLATE TRIBUNAL " B " BENCH, AHMEDABAD (BEFORE SHRI G.C.GUPTA VICE PRESIDENT & SHRI ANIL CHATURVEDI, A.M.) I.T. A. No. 2399/AHD/2009 (Assessment Year:2006-07) M/s Natural Bio Organic Product Vs. Income Tax Officer (OSD), B/2, Golden Plaza, Ankur Char Range 9, Surat Rasta, A.K. Road, Surat. (Appellant) (Respondent) PAN: AAFFN5752M Appellant by : Shri M.J. Shah Respondent by : Shri P.L. Kureel, Sr. D.R. ( )/ORDER Date of hearing : 08-10-2013 Date of Pronouncement : 18 -10-2013 PER SHRI ANIL CHATURVEDI,A.M. 1. This appeal is filed by the Assessee against the order of CIT(A)-V, Surat dated 29.05.2009 for A.Y. 2006-07. 2. The facts as culled out from the order of lower authorities are as under. 3. Assessee is a firm engaged in the business of manufacturing and sale of Bio Organic Fertilizer. It filed its return of income for A.Y. 06-07 on 04.10.2006 declaring total income of Nil after claiming deduction of Rs. 2 ITA No 2399/Ahd/2009 . A.Y. 2006-07 28,42,041/- under Section 80JJA of the Act. The case was selected for scrutiny and thereafter the assessment was framed u/s. 143(3) vide order dated 31.12.2008 and the total income was assessed at Rs. 61,76,377/-. Aggrieved by the order of A.O., Assessee carried the matter before CIT(A). CIT(A) vide order dated 29.09.2009 dismissed the appeal of the Assessee. Aggrieved by the order of CIT(A), the Assessee is now in appeal before us and has raised the following grounds:- 1.1 The CIT(A) erred in upholding the addition of Rs. 33,34,336/- on account of unexplained cash credit under section 68 of the I.T. Act, 1961. 1.2 The CIT(A) ought to have appreciated the overall facts and circumstances of the case and should have deleted the addition of Rs. 33,34,336/- made on account of unexplained cash credit under section 68 of the I.T. Act, 1961. 2.1 The CIT(A) further erred in not appreciating the facts and legal submissions and in the process erred in confirming the addition of Rs. 28,42,041/- on the pretext of rejection of deduction claimed under section 80JJA of the I.T. Act, 1961. Ground no. 1.1 and 1.2 are in connection with addition made u/s. 68 and interconnected and both the grounds are considered together. 4. During the course of assessment proceedings, A.O. noticed that Assessee has shown receipt of unsecured loan of Rs. 33,34,336/- which was claimed to have received from OM Textiles and Elegant Diamond Company. To verify the genuineness of transaction and the creditworthiness of the persons, notice under section 133(6) was issued to the parties and they were also asked to confirm the transaction by producing the copy of contra account, bank statement, return of income, proof of identity etc. 3 ITA No 2399/Ahd/2009 . A.Y. 2006-07 5. In the case of OM Textiles, A.O. noticed that the bank account furnished pertained to period 1.04.2006 to 23.05.2006 and the same was not covered under the period of scrutiny. He also observed that in the statement that there were some entries of cash amounting to Rs. one lac but as the bank account for the period was not provided of the persons who had advanced the money to the Assessee, A.O. was of the view that the genuineness of the transaction and creditworthiness of the person advancing the fund left unproved. With respect to Elegant Diamond Company, A.O. noted that the information called from Elegant Diamond Company was not received from Elegant Diamond Company till the date of finalization of assessment order but however the Assessee had submitted the copy of confirmation statement, acknowledgement of return of income, copy of bank account which it had claimed to have been received directly from Elegant Diamond Company. The submission of the Assessee was not found acceptable by the A.O. for the reason that (i) none of the documents were original and were merely photo copies bearing no date of issue/preparation. (ii) The signature on the copy of confirmation of account and on the copy of acknowledgement of return of income of Shri Rikhab Chand Jain did not tally. (iii) The acknowledgement of the return of income did not establish any relation between Shri Rikhab Chand Jain and Elegant Diamond Company, in whose name the notices were issued. (iv) The return of income of Elegant Diamond Company was filed at Gandhidham despite the fact that the address given by the Assessee was of Mumbai. (v) The income shown in the return of income was only Rs. 1,30,028/- which according to A.O. creates a doubt about the capacity to loan Rs. 30 lacs. (vi) The bank statement of Elegant Diamond Company did not carry the name and the 4 ITA No 2399/Ahd/2009 . A.Y. 2006-07 branch of the bank in which the account was maintained. In view of these facts, the A.O. considered that the Assessee has failed to prove the genuineness of transaction. He accordingly considered the amount received from both the parties as unexplained cash credit under section 68 and made an addition of Rs. 33,34,336/-. Aggrieved by the order of A.O., Assessee carried the matter before CIT(A), CIT(A) upheld the order of A.O. by holding as under:- "I have gone through the assessment order and also through the submissions made and judgments relied upon by the appellant. The appellant's main contention is that when the payments are routed through banks the genuineness of transaction is proved. In this regard the appellant enclosed the bank statement of M/s Elegant Diamond Co. along with the copy of the acknowledgement of the return filed by the said party. The bank statement so attached does not bear the name and address of the person to whom that bank account belong. Further the confirmation filed by the appellant of the said party bears the signature which differs from the signature of the said party on the return filed by him. The appellant did not file any supporting document like affidavit from the said party affirming that the signature on the confirmation and on the return of income are of the same person. Merely the transactions are routed from bank is not sufficient compliance. The circumstantial evidence too play very important role. Here the documents attached in support of appellant's claim are against his claim, therefore, I hold that the addition made by the AO as unexplained cash credits is correct. As regard loan received from M/s Om Textiles the appellant has filed confirmation and acknowledgement of return and the bank statement of year not relevant to the year under consideration. In this regard, I disagree with the appellant's contention that there is no scope for doubting the same just because subject depositor has by mistake provided the bank statement for subsequent period. The appellant in his support did not produce the bank statement of the period under consideration even before me. Without verifying the entries in appellant's bank account with that of the depositor I am not is position to accept the appellant's submissions. Therefore, addition as unexplained cash credit from M/s OM Textile made by the AO stands confirmed. Therefore, the appeal of the appellant against the addition of Rs.33,34,336/- of unsecured loans treated as unexplained cash credits u/s 68 of the Act is rejected." 6. Aggrieved by the order of CIT(A), the Assessee is now in appeal before us. Before us, with respect to Elegant Diamond Company it was submitted that it was a proprietory concern of Shri Jain. Assessee placed on paper book, the copy of confirmation from Elegant Diamond 5 ITA No 2399/Ahd/2009 . A.Y. 2006-07 Company which contained in PAN number and Address. He also placed at page 73 of the paper book, the confirmation of balance as on 31.03.2006 and pointed to the fact that it contains the telephone number of Elegant Diamond Company and further submitted that the Assessee has also deducted TDS. He also placed on record, the copy of return of income of Shri Jain for A.Y. 06-07 at page 74of the paper book and the copy of his bank account showing the payment of Rs. 30 lacs by cheque. With respect to OM Textile, he placed on record the copy of the ledger account at page 79 of the paper book. He also placed on record at page 80, the copy of return of income of Shri Jaysukhbhai Lathia. He therefore submitted that the Assessee has discharged the initial onus cast upon the Assessee and therefore no addition was called for. The ld. D.R. on the other hand submitted the Assessee has not proved the genuineness of the transaction and he pointed to the finding of CIT(A) and thus supported the order of A.O. and CIT(A). 7. We have heard the rival submissions and perused the material on record. It is an undisputed fact that Assessee has received loan from two parties namely Elegant Diamond Company and OM Textile. With respect to Elegant Diamond Company, Assessee has placed on record the copy of confirmation of accounts which contains the Telephone number of the creditor. The ld. A.R. has also placed on record the copy of return of income and the bank book of Elegant Diamond. We also find that during the course of assessment proceedings, the Assessee has furnished these materials but no enquiry was made by the A.O. He has simply rejected the submissions of the Assessee for the reasons listed in his order. We are of the view that in the present case, with respect to Elegant Diamond 6 ITA No 2399/Ahd/2009 . A.Y. 2006-07 Company, the Assessee has duly discharged the initial onus cast upon it and thus no addition is required on that count. 8. With respect to OM Textile, we find that Assessee has filed copy of the return of income and has also filed the copy of his pass book. However, no copy of the confirmation has been filed before us. Considering the totality of the facts, we are of the view that in the interest of justice and fair play one more opportunity be granted to the Assessee to substantiate its stand before the A.O. We therefore remit the matter with respect to OM Textiles to the file of A.O. and direct him to verify the submissions made by the Assessee and thereafter decide the issue in accordance with law and after giving a reasonable opportunity of hearing to the Assessee. Thus this ground of Assessee is partly allowed. Ground no. 2 is with respect to rejection of claim of deduction of Rs. 28,42,041/- under Section 80JJA. 9. A.O. noticed that Assessee had claimed deduction of Rs. 28,42,041 under 80JJA. The Assessee was asked to submit documentary evidence to confirm that it has fulfilled the condition laid down in the section for claiming the deduction. A.O. also noticed that most of the bills/ invoices for sale of Vermin Compost was issued in the name of Shri Narsibhai Savalia. A.O. issued letter u/s. 133(6) to the party for confirmation of transaction but the letter was returned unserved. Thereafter A.O. issued commission under Section 131(1)(d) to ITO, Amreli assigning inquiry for confirmation of transaction with Shri Narsibhai Savalia. A.O. noted that ITO, Amreli vide letter dated 22.12.2008 has reported that Shri Narsibhai 7 ITA No 2399/Ahd/2009 . A.Y. 2006-07 Savalia had in his statement which was recorded on oath had shown his ignorance about any transaction with the Assessee firm. The Assessee was thereafter asked to explain the mismatch in the information, but no satisfactory explanation was given by the Assessee. Thus in the absence of satisfactory explanation, Assessee disallowed the claim of deduction under 80JJA. Aggrieved by the order of A.O., Assessee carried the matter before CIT(A). CIT(A) after considering the submissions of the Assessee upheld the order of A.O. by holding as under:- "I have gone through the assessment order and also through the submissions made and judgments relied upon by the appellant. Except from the argument of the appellant that the general project information consists of the date of commencement of business as 2005 I disagree with all the other arguments of the appellant. But merely the date of commencement of business in the said report does not prove that the business was actually commenced in the year 2005. From the documents submitted before me it could be seen that the appellant's claim that statement given by Shri Narsibhai is not correct, is absolutely not acceptable. The signatures on the statement recorded and that on the delivery challans produced by the appellant do not match. Further the test reports of M/s Pollucon Laboratories Pvt. Ltd submitted by the appellant appears to be fabricated as there is printing as well as signature difference in all the four test reports. The condition for claiming deduction under section 80JJA is, "a deduction of an amount equal to the whole of such profits and gain for a period of five consecutive assessment years beginning with the assessment year relevant to the previous year in which such business commences". In the appellant's case from the documents submitted before me it is not proved that the business has actually been commenced during the year under consideration. Therefore, I do not find any reason to interfere with the decision of the AO and hence confirm the addition of Rs. 28,42,041/- made by the AO by disallowing the deduction u/s. 80JJA. 10. Aggrieved by the order of CIT(A), the Assessee is now in appeal before us. Before us, at the outset, the ld. A.R. submitted that the statement of Shri Narsibhai Savalia was recorded at the back of the Assessee and the Assessee was not granted any opportunity to cross-examine him. He further submitted that the Assessee be granted an opportunity to cross- examine. Shri Narsibhai Savalia and therefore the matter may be remitted 8 ITA No 2399/Ahd/2009 . A.Y. 2006-07 to the file of A.O. with necessary directions. The ld. D.R. on the other hand supported the order of A.O. 11. We have heard the rival submissions and perused the material on record. We find commission under Section 131(1)(d) of the Act was issued to ITO, Amreli who was assigned to make enquiry with Shri Narsibhai Savalia about the transaction of alleged sale by with the Assessee. A.O. in his order has noted that ITO, Amreli vide order dated 22.12.2008 has reported about ignorance of any transaction by Shri Narsibhai Savalia with the Assessee firm. The A.O. has relied on the aforesaid statement to deny deduction. A.O. has also noted that the majority of sales by the Assessee was to Shri Narsibhai Savalia. We further find that Assessee was not granted an opportunity to cross-examine Shri Narsibhai Savalia. 12. In the case of CIT vs. Eastern Commercial Enterprises (1994) 210 ITR 103 (Cal) Hon. Calcutta High Court has held as under:- "As a matter of fact, the right to cross examine a witness adverse to the Assessee is an indespensible right and the opportunity of such cross examination is one of the corner stones of natural justice. It has further held that it is trite law that cross examination is the sine qua non of due process of taking evidence and no adverse inference can be drawn against a party unless the party is put on notice of the case made out against him. He must be supplied the contacts of all such evidence, both oral and documentary, so that he can prepare to meet the case against him. This necessarily also postulates that he should cross examine the witness hostile to him." 13. In view of the aforesaid facts, and to meet the ends of justice, we are of the view that the Assessee be granted an opportunity to cross-examine Shri Narsibhai Savalia. We therefore remit the matter to the file of A.O. and direct him to allow the opportunity to cross-examine of Shri Narsibhai Savalia to the Assessee and after considering the submissions 9 ITA No 2399/Ahd/2009 . A.Y. 2006-07 of Assessee decide the issue in accordance with law and after giving reasonable opportunity of hearing to the Assessee. Thus this ground of Assessee is allowed for statistical purposes. 14. In the result, the appeal of the Assessee is partly allowed for statistical purposes. Order pronounced in Open Court on 18 -10 - 2013. Sd/- Sd/- (G.C.GUPTA) (ANIL CHATURVEDI) VICE PRESIDENT ACCOUNTANT MEMBER Ahmedabad. TRUE COPY Rajesh Copy of the Order forwarded to:- 1. The Appellant. 2. The Respondent. 3. The CIT (Appeals) ­ 4. The CIT concerned. 5. The DR., ITAT, Ahmedabad. 6. Guard File. By ORDER Deputy/Asstt.Registrar ITAT,Ahmedabad

M/s Sanraj Engineering P. Ltd. A-4/B-1, Mohan Co-op Industrial Estate Mathura Raod, New Delhi. Vs. ITO Ward-7(3) New Delhi.

Trial Court can’t dismiss complaint under sec. 276B in absence of docs which were in judicial custod

IT : Where documents listed with complaint for offence under sections 276B and 278B against assessee could not be produced before Trial Court owing to fact that said documents were in judicial custody in some other cases, Trial Court was not justified in dismissing complaint for want of production of documents

AGM Notice deemed to be served if delivered by hand or by certificate of posting or by publication i

CL: Service of notice of AGM by hand, under certificate of posting and by publication in newspaper is considered as deemed service of notice

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SEBI : Issues Pertaining to Primary Issuance of Debt Securities

I-T dept. not expected to raise revenue from an ignorant assessee; AO obliged to extend relief of su

IT : Tribunal has comprehensive jurisdiction which gives discretion to allow a new ground to be raised