Depreciation on leased asset allowed in earlier year, available in subsequent years also

IT : Where some expenditure was definitely involved in earning income from tax free bonds, disallowance made under section 14A at rate of 2 per cent was justified

Trust not hit by proviso to sec. 2(15) without establishing profit motive or deviation from laid dow

IT : Where no material was brought on record to suggest that assessee-development authority was conducting its affairs on commercial lines with motive to earn profit or had deviated from its objects as detailed in trust deed, proviso to section 2(15) was not applicable and assessee was entitled to exemption provided under section 11

Sec. 158BD notice quashed as no incriminating doc relating to assessee found during search of third

IT: Where no documents pertaining to assessee was found/seized in search carried out at premises of third person and Assessing Officer having jurisdiction over third person had also not recorded his satisfaction that assessee had undisclosed income, proceedings under section 158BD initiated against assessee were invalid and liable to be quashed

IRDA curtails frequency of board meetings; meetings to be held four times a year

Insurance : IRDA (Meetings) (First Amendment) Regulations, 2013 - Amendment in Regulation 3

Interest to be paid along with refund; it can’t be denied on pretext of assessee’s failure to apply

IT: Where refund is pending before authorities, failure to apply for refund cannot be treated as delay attributable to assessee for denial of interest on refund

Posco Gets More Time To Complete Odisha Sez

12-Nov-2013

South Korean steel major Posco has got time till next year to acquire land and disburse compensation for its proposed multi-product Special Economic Zone in Odisha.



The Board of Approval for SEZs, which decides on issues related to setting up and functioning of the zones, gave extension to the project, approved way back in October 2006. This is the fourth extension given to the project, with the last one lapsing last month.



Since Posco proposes to invest $12 billion in the SEZ, one of the largest foreign direct investments to be brought into the country by a company, it is also in India’s interest to give it more time, a Commerce Ministry official told Business Line.



The multi-product SEZ, which is to be developed by Posco-India Private Ltd in Odisha’s Jagatsinghpur district, has been facing a rough run in the State. Issues related to environment and forest clearances as well as refusal by locals to give land have held up the project, which is proposed to be spread over 1,620.49 hectares (4,000 acres). “BoA members agreed that there was evidence that Posco has remained engaged with the project over the years and was trying to get the tangles sorted out. It was, therefore, decided to extend its in-principle approval by another year,” the official said.



The SEZ project proposes to produce 63,48,000 tonnes of finished steel products per year and provide direct employment to about 18,000 people and indirect employment to 30,000 more.



The developer had applied to the BoA for further extension of approval by one year on the ground that land was not encroachment-free till date and that the encroachment removal and compensation disbursement processes were still in process.



The State Government has so far handed over physical possession of 1,704 acres and the company is expected to get another 1,000 acres soon, Posco-India’s General Manager Hak Soo Kim said in a letter to the Industries Department.

Source:- thehindubusinessline.com

Oil India Sept Quarter Net Drops 5.3 Pc To Rs 903.64 Cr

Oil India (OIL), the nation's second largest state explorer, has reported a 5.3 per cent drop in its second quarter net profit on lower crude oil production and higher fuel subsidy.



Net profit in July-September quarter dipped to Rs 903.64 crore, or Rs 15.03 per share, from Rs 954.57 crore, or Rs 15.88 a share, the company said in a statement.



Profits fell as it shelled out 7.5 per cent more fuel subsidy at Rs 2,233.70 crore in the quarter under review.



Upstream firms like OIL and ONGC bear a portion of the losses fuel retailers incur on selling diesel, domestic cooking gas (LPG) and kerosene at government control prices. They do so by selling crude oil they produce at a discount to the downstream companies.



The subsidy outgo lowered net profit by Rs 1,265.68 crore, OIL said.



OIL's net realisation on crude oil was $52.33 per barrel after it gave a discount of $56 to the downstream refinerers like IOC. The net realisation was marginally lower than $52.63 a barrel it got in Q2 of last fiscal.



Crude oil production slipped 4.6 per cent to 0.916 million tonnes while natural production at 0.666 billion cubic metres was lower than 0.69 bcm in July-September of 2012.



"The decrease in crude oil production and sales quantity is due to certain bandhs and blockades (in North East) which affected operations in Q2 FY14. The crude oil loss due to such Bandhs and Blockades was 3456 tonnes during Q2," the statement said.



Turnover was up 12.58 per cent at Rs 2,836.40 crore in second quarter.



Net profit fell 19.74 per cent to Rs 1,512.72 crore, or Rs 25.16 a share, in the first half of current fiscal as subsidy outgo soared 3 per cent to Rs 4,215.76 crore. Turnover was almost unchanged at Rs 4,934.17 crore in April-September period.

Source:- businesstoday.intoday.in

Indian Textile Towns Strike Against Power Tariff Hike

Thousands of slogan-shouting powerloom weavers on Monday marched on their motorcycles through the narrow lanes of Malegaon, a textile town 300 km north of Mumbai, to protest a recent government hike in power tariff.



"We will no longer tolerate the double-standard policy of the state's government," Asad Zeeshan, a small-time powerloom weaver who joined the motorcycle rally, told Anadolu Agency.



The middleclass weaver owns 24 powerlooms -- a weaving machine invented by Edmund Cartwright way back in 1785 and is still in vogue in a developing country like India.



"Beginning tomorrow, there will be complete shutdown of Malegaon’s powerloom industry for six days," Zeeshan said.



Malegaon will become the third textile town to join a call for voluntary strike over the recent decision of the Maharashtra State's government to hike power tariff.



On September 5, Maharashtra Electricity Regulatory Commission, a government-appointed body, increased the power tariff per unit from Rs. 3 to Rs. 4.40.



Bhiwandi, a textile town 60kms north of Mumbai, began a ten-day strike from November 6.



Ichalkaranji, another textile hub 425 km southeast of Mumbai, followed suit on November 7.



On October 18, people in 70 places in 20 districts participated in a unique protest of burning power bills.



Mufti Mohammed Ismail, the state legislator from Malegaon, came down heavily on the state's government.



"According to one estimate, government collects Rs.2,000 tax annually per powerloom while it only gives the subsidy of Rs.750 in power tariff," he told AA.



"The state government is testing the tolerance of more than a million people in three different textile towns," he fumed.



According to the Federal Textile Ministry, Bhiwandi, Ichalkaranji and Malegaon are the three most important powerloom clusters mainly controlled by Muslim weavers.



Out of total 2.4 million powerlooms in India, Maharashtra State has 1.2 million powerlooms.



Bhiwandi boasts at least 600,000 power looms while Ichalkaranji and Malegaon, once known as the Manchester of Maharashtra, each has approximately 150,000 powerlooms.



Doldrums



Mahavitaran, the power distribution company, denied accusations of exploiting hapless weavers.



"We have improved the power distribution and have successfully brought down the company’s loss," an official told AA on the condition of anonymity.



"It is the Regulatory Commission who decides the power tariff not us," he said.



Faizan Azmi, a veteran powerloom expert and chairman of the Bhiwandi-based Maharashtra State Powerloom Federation, a textile NGO, urged the state government to reconsider its position.



"The state government must resolve this issue at the earliest because the powerloom industry is literally in doldrums," Azmi told AA.



Dr. Rehan Ansari, a political commentator from Bhiwandi, says small weavers will suffer the most because of the shutdown as their earnings entirely depend upon the production.



He does not expect a solution soon.



"It is highly unlikely that a favorable decision will be taken by state government," he told AA.



"At the most, they will adopt conciliatory tone and try to delay this under one pretext or another as the shutdown or strike is not indefinite," he added.



Ansari says that the government may delay the issue of power tariff by appointing a review committee.



Pratap Hogade, Secretary of Ichalkaranji-based Indian Powerloom Federation, said the power tariff in Maharashtra is almost double than other states.



He accused the state's government of adopting delay tactics.



"On October 23, a cabinet meeting was called and a committee was formed to resolve this issue," he recalled.



"There has been no word from the committee yet. State is adopting delay tactics to sabotage this mass protest," Hogade charged.



"We immediately want a stay on the tariff hike. The state committee can take from 6 months to 6 years to decide."



Azmi, the industry activist, says so far there is no sign that the state's chief minister has intervened in the matter.



"Efforts must be made to include power looms under the category of ‘domestic industry’," he asserted.



"Hundreds of thousands of people, including migrant laborers from North India, will be jobless if this industry collapses," he warned.



But Rasheed Tahir Momin, a state legislator from Bhiwandi, is still optimistic.



"The government has already appointed a cabinet sub-committee to find a solution to the ongoing stalemate," he told AA.



"It is expected to file its report within a couple of days," he added.



"I am constantly in touch with chief minister’s office. I am getting a strong feeling that the chief minister will intervene in this matter soon and the outcome will be positive," said the lawmaker.



"With the kind of pressure and protest, I am hopeful of a positive outcome soon."



An official in Maharashtra chief minister’s office told AA that they are closely monitoring the situation in three textile towns.



When asked whether there will be any decision by the chief minister to resolve the shutdown crisis, he refused to divulge any detail.



"Everything is on the table. We are meeting various delegations and deliberating all the possibilities," said the official, declining to be named.



"The cabinet sub-committee will submit a report soon," he said.



Yusuf Ilyas of the All-Malegaon Powerloom Consumers Association expected the state's government to bend this time.



"Time and again, the government has played the role of hide and seek," he told AA.



"But this time, we will not relent to their persuasion. We will only back down when there is a decision to withdraw the hiked tariff."

Source:- worldbulletin.net

Palm Imports By India Expanding As Crop Delay Cuts Reserves

Palm imports by India, the world’s largest consumer, probably climbed in October as a delay in the oilseed harvest reduced cooking oil stockpiles to the lowest level in nine months.



Shipments of the main crude and refined palm oils advanced 14 percent to 710,000 metric tons from 620,385 tons a month earlier, according to the median of estimates from five processors and brokers compiled by Bloomberg. Total vegetable oil imports, including those for industrial use, rose 10 percent to 950,000 tons, the survey showed. The Solvent Extractors’ Association of India will release the data this week.



Increased purchases may extend a rally in prices of palm oil, used in everything from candy to cosmetics. Futures in Kuala Lumpur entered a bull market on Nov. 1 and are heading for their first annual gain in three years amid production declines in Indonesia, the world’s biggest supplier.



“The Indian crop was delayed, leading to lower supplies ahead of festivals,” said Sandeep Bajoria, chief executive officer of broker Sunvin Group, referring to Diwali and Eid celebrations when consumption of fried foods and sweets expands.



An extended monsoon delayed the harvest of soybeans and peanuts this year, said Mumbai-based Bajoria. The Soybean Processors Association of India cut its forecast for the biggest oilseed crop grown in the season to 12.2 million tons on Oct. 28 from 12.98 million tons.

Reserves Drop



Stockpiles of cooking oils at Indian ports dropped to 1.47 million tons on Oct. 1, the lowest since January, according to the Solvent Extractors’ Association. Inventories may have reached 1.6 million tons at the start of November, said Bajoria. India meets more than half its demand through imports.



Palm for delivery in January advanced 0.7 percent to 2,618 ringgit ($816) a ton on the Malaysia Derivatives Exchange today, the highest price since Nov. 4. Prices rose to 2,628 ringgit on Nov. 1, the highest close since September 2012 and 21 percent more than the 2,167 ringgit settlement on July 29, meeting the common definition of a bull market.



“Imports will start to drop from this month as the new crop comes in,” said Pradip Desai, managing director of Mumbai-based broker Palm Trade Services Pvt. “Soybean oil import demand will be lower.”



Vegetable oil purchases in the 11 months through September rose 5.5 percent to 9.66 million tons, data from the association showed. Imports will surge to 10.4 million tons to 10.5 million tons in the year ended Oct. 31 from 10.2 million tons a year earlier, said Bajoria.



Crude soybean oil imports probably fell to 100,000 tons in October from 140,971 tons a month earlier, while sunflower oil purchases may have jumped to 115,000 tons from 48,498 tons, the survey showed.

Source:- bloomberg.com

India's Imports Gained While Exports Grew Negligibly From Ftas: Assocham Study

12-Nov-2013

In the aftermath of signing 15 regional and bilateral free trade agreements (FTAs), while India's imports from these countries and regions increased significantly but our exports to these partner countries either stagnated or registered minimal growth, according to a just-concluded study undertaken by apex industry body The Associated Chambers of Commerce and Industry of India (ASSOCHAM).



India has signed as many as 15 FTAs including preferential trade pacts, while 19 are under negotiations and eight are in the pipeline but India is still grappling with slow growth of exports and sluggish foreign direct investment (FDI) flows from its FTA partners, said Mr D.S. Rawat, secretary general of ASSOCHAM.



These engagements have achieved limited results in terms of increasing trade volumes with member countries and thus main objective of these market opening pacts is only partially being met, said Mr Rawat. There is an urgent need for the government to revisit its strategy of FTAs, bring greater transparency and involve more effective administrative process in their design and implementation to make FTAs more beneficial for India.



Out of the seven major trading partners viz., ASEAN (Association of South-East Asian Nations), Indonesia, Japan, Malaysia, Singapore, South Korea and Sri Lanka with whom India has operationalised FTAs, it has trade surplus with only Sri Lanka and Singapore, highlighted the study prepared by the ASSOCHAM Economic Research Bureau (AERB).



Even on the investment front these free trade pacts have not given any extra edge to India so far as during April 2000-June 2013, India received FDI worth $1.25 billion (bn) and $14.75 bn from South Korea and Japan respectively and this year during April-June, India attracted only $224 million worth FDI from Japan while the figure was $2.23 bn in 2012-13 and $2.97 bn in 2011-12.



Considering the negative impact of these agreements on India's manufacturing sector, ASSOCHAM has suggested that trade agreements should be 'self-regulatory' to evade scope of 'safeguard measures' and the advanced partners must not be allowed to salvage Surplus capacities through exports and exploiting concessional duty rates under trade agreements.



Besides, it should be seen that trade agreements do not become a means to fill the country's short-term supply-deficit through exports made at concessional duty rates as it adds an anti-competitive element vis-vis imports from other countries. Therefore, it needs to be complemented with Specific & Time-bound commitment for inflow of Investment, otherwise the purpose of a Trade Agreement gets defeated, highlighted the ASSOCHAM study.



Considering that India's negotiations for comprehensive FTA with European Union (EU) are at an advance stage, ASSOCHAM has suggested the Ministry of Commerce and Industry to from a special team of experts to negotiate FTAs, besides the government should organize FTA outreach programmes to create awareness amid various stakeholders.



As the feasibility/joint studies conducted by the government before commencing talks for any FTA form the basis of negotiations, ASSOCHAM has also suggested for broadening the base of such studies and inviting participation from various stakeholders like academicians, representatives of the marginal, small and medium enterprises (MSMEs) and state government officials. Besides, Indian embassies in these countries should also be engaged to gather sensitive information while conducting such studies.



Other significant points suggested by ASSOCHAM include - constant updation of publically accessible information, consultation with governments at state level before finalizing the pacts, emphasis should be laid on sectors lucrative for domestic players and tariff rates of specific sectors where Indian traders can penetrate aggressively must be looked at.



So far, India has concluded 10 Free Trade Agreements, 5 Limited scope Preferential Trade Agreements and is in the process of negotiating or expanding 17 more Agreements. Besides, at least 9 more proposals for FTAs are under consideration and when completed, these Agreements would cover over 100 countries spread across 5 continents.

Source:- business-standard.com

Global Coffee Exports Touches 110.2 Mn Bags In 2012-13

12-Nov-2013

Global coffee exports touched a record 110.2 million bags in the 2012—13 marketing year on significant rise in shipments from Brazil, Indonesia and Colombia, the International Coffee Organisation (ICO) said.

Exports from India, on the other hand, fell marginally to 5.16 million bags in the same period. World coffee exports stood at 107.71 million bags in the 2011—12 marketing year that runs from October to September the global body said.

“Despite a slight decrease in September, total exports for 2012—13 reached a record volume of 110.2 million bags,” ICO said in its latest report. One bag has 60 kilo coffee.

Of the total exports, Arabica variety of coffee comprised of 68.5 million bags, while Robusta shipments were 41.7 million bags in the same period, it said.

“The most dynamic growth over the last few years has been in exports of Robustas, which reached a record 41.7 million bags, accounting for 37.8 per cent of the world total and 2.1 per cent higher than 2011—12,” the ICO said.

Barring India and Vietnam among top five coffee exporters, the shipments from Brazil, Indonesia and Colombia remained robust in the 2012—13 marketing year.

Export from Brazil, the world’s largest coffee exporter, increased to 30.94 million bags in 2012—13, as compared to 28.86 million bags in the same period last year.

Similarly, the shipments from Indonesia, the world’s third largest coffee exporter, increased to 10.63 million bags from 8.64 million bags, while shipments from Colombia rose to 8.84 million bags from 7.29 million bags in the review period.

However exports from India, the world’s fifth largest coffee exporter, fell to 5.16 million bags in the 2012—13, from 5.36 million bags in the previous year.

The shipments from Vietnam, the world’s second largest coffee exports, also dropped to 19.99 million bags from 21.70 million bags in the review period.

Source:- thehindubusinessline.com

Indian State Companies Delay Closing Of Wheat Export Tenders

India’s three state-owned traders have deferred the closing date for bids to export a total of 340,000 tonnes of wheat from government warehouses for shipment by December due to a public holiday, traders said on Tuesday.



State Trading Corp, MMTC Ltd and PEC Ltd will now close the bid on 18 November instead of 15 November.



The companies are offering the quantity at a floor price of $240 per tonne as part of the latest round of global export tenders.



STC is offering 120,000 tonnes on India’s west coast, MMTC 60,000 tonnes on the east coast, while PEC is offering a total of 160,000 tonnes on both the coasts.

Source:- livemint.com

Essar Billionaires Cut Exports On Refiner Glut: Corporate India

Billionaire brothers Shashikant and Ravikant Ruia, who run India’s second-biggest oil refinery, will increase fuel sales at home as capacity additions in China and the Middle East shrink export margins.



Essar Oil Ltd. (ESOIL) will reduce overseas sales from its 400,000-barrel-a-day plant as it predicts local demand for gasoline and diesel will rise in the year ending March 31, Managing Director Lalit Kumar Gupta said in an interview. The end of an above-normal monsoon in India will help revive diesel demand in Asia’s second-biggest energy consumer, he said.



“Domestic sales will rise and protect margins,” Gupta, 53, said by phone from New Delhi. “Demand in India will increase, and local refineries will be needed.”



New processing capacities in China and the Middle East are set to increase supplies of petroleum products to Asia and erode earnings of export-focused refineries including Essar Oil and Reliance Industries Ltd. (RIL), controlled by tycoon Mukesh Ambani. The coming jump in output has forced Asian oil companies including Japan’s JX Holdings Inc. (5020) and South Korea’s SK Innovation Corp. (096770) to also cut their profit estimates.



“Huge capacity additions coming in Asia over the next one year will weigh on global margins,” Vinay Nair, an analyst at Karvy Stock Broking Ltd. said from Mumbai. “Although Essar Oil is focusing on the domestic market, it isn’t immune to global margin risks.” He doesn’t rate Essar shares.

Source:- bloomberg.com

Oppression upheld as wife failed to pay bank loan after death of her husband using owned co. funds

CL: Where petitioner's husband and respondent No. 2 having formed respondent-company, took a loan from bank, in view of failure of respondent No. 2 to repay said loan out of available funds of company after demise of petitioner's husband, a case for oppression and mismanagement was made out against respondent No. 2 in conducting affairs of respondent-company

Indian Rupee Opens Weak, Down 19 Paise At 63.90/Dollar

Indian rupee continued its downtrend for the sixth consecutive session on Wednesday as it is heading towards 64 per dollar.



The currency fell 19 paise in early trade to 63.90 per dollar as against previous day's closing of 63.71 per dollar. According to Himanshu Arora of Religare, dollar is expected to trade higher in the next session due to weak cues from CPI and IIP.



"Continued strength in the dollar index, as seen in the past few trading sessions may also underpin dollar against the rupee in domestic market," he adds. He says the range for the day is seen between 63.50-64.15/USD.



The dollar holds firm staying near a two-month high against the yen as investors bet that the US Federal Reserve is on course to start reducing its stimulus as early as December.

Source:- moneycontrol.com

IRDA curtails frequency meeting of board meetings; meetings to be held four times a year

Insurance : IRDA (Meetings) (First Amendment) Regulations, 2013 - Amendment in Regulation 3

No mandatory sequencing of imports prior to exports for advance authorisation prior to 14-08-2013, R

FEMA/ILT : Import of Gold by Nominated Banks/Agencies/Entities

IRDA curtails frequency of meeting of Insurance Advisory Committee; meetings to be held twice a year

Insurance : Insurance Advisory Committee (Meetings) (Second Amendment) Regulations, 2013 - Amendment in Regulation 3

Making an unsustainable claim doesn’t lay down enough reasons for concealment penalty, says HC

IT : Mere making of unsustainable claim invokes no penal proceedings

ITAT has no power to dismiss an appeal in limine without examining merits of case

IT: Appellate Tribunal has no power to dismiss appeal in limine for absence of appellant in proceedings

Delay in payment of interest to be compensated by payment of interest on such delayed interest: Delh

IT : Where assessee became entitled to refund of taxes paid and interest under section 244A had become due and payable on tax amount refundable and Assessing Officer did not make payment of interest element on date when tax amount was refunded, revenue would be liable to pay interest under section 244A on said amount of interest up to date of payment

Issue as to excisability of a product can be raised only before Supreme Court, says HC

ST : Question as to whether any goods are excisable or not falls within exclusion in terms of section 35G(1) for which appeal lies only to Supreme Court because said question is an issue directly linked to determination of rate of duty