IT: Where there was no addition over and above income declared by assessee in return of income, no penalty under section 271(1)(c) was to be imposed
Sunday 1 December 2013
Dependency on others isn’t a reasonable excuse to seek waiver of penalty
ST/UK VAT : Penalty for late payment of tax/late filing of returns cannot be waived merely because assessee's accountant had left and had not supplied requisite information, as "depending upon others" is not a reasonable excuse for waiver of penalty
CIT(A) rightly quashed penalty orders passed in pursuance of block assessment which was barred by li
IT: Block assessment proceedings have no bearing or linkage with penalty orders passed under sections 271D and 271E and, therefore, where in pursuance of block assessment order passed in month of June 2001, penalty orders under sections 271D and 271E were passed on 30-3-2006, Commissioner (Appeals) was justified in setting aside same being barred by limitation in terms of section 275(1)(c)
Sacred certificate - Certificate from CA proves absence of unjust enrichment even if it doesn’t show
Excise & Custom : Merely because Chartered Accountant's certificate does not give details of costing etc., will not turn it into a bad certificate when it is clearly stated by Chartered Accountant that assessee had not passed on burden to clients; it is valid for proving that there is no unjust enrichment
Cotton Rallies From New Low To Finish Holiday Week Ahead
A long-expected announcement of the resumption of sales from China’s huge national reserves has capped an eventful holiday-shortened trading week in cotton futures.
Traders also pondered the effects of a harvest-halting winter storm on the Texas High Plains, soaking rains in the Southeast and Delta and the apparent movement of December deliveries into strong commercial hands.
Most-active March advanced 121 points from its close on a new seasonal low on Friday, Nov. 22, to finish at 78.44 cents on Wednesday. Maturing December gained 154 points to close at 76.75 cents. Its last trading day is Friday, Dec. 6.
The market was closed Thursday in observance of Thanksgiving and was to have a delayed opening and early close on Friday.
March rallied two days in a row after finishing Friday, Nov. 22, with its fifth consecutive weekly loss, longest since June 2012, and at a price near that of a year ago. Then it gave back nearly 40 percent of the two-day closing gains but still finished above its 18-day moving average.
Cash grower-to-business sales climbed to a crop-year high for the second week in a row on The Seam, rising to 45,147 bales from 39,281 bales. Prices rose to an average of 74.14 cents from 73.21 cents, reflecting gains to 20.52 cents from 19.95 cents in premiums over loan repayment rates. Daily price averages ranged from 71.30 to 74.45 cents.
China was to begin its stockpile sales on Thursday, Nov. 28, and to continue the auctions through Aug. 31 on a minimum price of 18,000 yuan per metric ton for standard grade cotton. The price is equal to roughly $1.34 a pound.
The China National Cotton Reserves Corp. held daily auctions from January through July, but mills bought just 25 percent of the cotton offered because of the elevated price.
Concerns about quality arose on plans to sell 2011-crop cotton. Chinese mills have complained about the quality of stored cotton and loss of weight in storage.
New-crop cotton from India’s record output is expected to offer stiff competition. Chinese buyers have been reported importing Indian cotton for about 17,700 yuan per ton, including a 40 percent tariff.
Details appeared generally in line with trader expectations. There apparently won’t be a 3:1 buying incentive under which mills in the last series of auctions could get an import quota for a ton of cotton for every 3 tons purchased from the reserves.
The reserve price had been widely expected to drop from the uniform 19,000 yuan per ton on the last series of sales. Under the new auctions, a price below the 18,000 yuan will be available on the lower grades.
John Bondurant, Memphis-based trader and Delta producer, put a pencil to what was accurately rumored at the time, a day before the official announcement, and figured China likely would continue to buy U.S. cotton unless some other restrictions were imposed.
With March futures around 78.50 cents, as at Monday’s close, and about 8.5 cents required to land cotton in China, the landed cost would be around 87 cents, he said. And this would be about $1.22 after paying the 40 percent import duty.
U.S. export sales have remained strong in the face of all the talk about the impending Chinese sales. Export sales have totaled 1.143 million running bales in the three reporting weeks ended Nov. 14, raising 2013-14 commitments to 6.116 million.
China has been the leading buyer, booking 1.446 million bales or 24 percent of overall 2013-14 export commitments totaling 6.116 million.
Yet considering various tariffs and penalties imposed on import quotas, some traders still figured a competitive spot futures price now would be somewhere in the low 70s.
On the crop scene, harvesting was expected to resume later in the week in parts of the Texas High Plains after rain, sleet and snow last weekend paralyzed field activities throughout the region.
Kenny Day, area director of the classing facility at Lubbock, said estimates indicated about 80 percent or more of the crop in his territory was off the stalk. Sample receipts slowed to about 25,000 to 30,000 a day from 37,000 to 38,000 prior to the snow.
Quality has remained good on the 1.091 million running bales classed through Nov. 26, Day said, though the amount of lower mikes — a measure of fiber fineness or maturity — has been rising.
About 60 percent of the estimated crop in the Lubbock territory was expected to have been classed through midweek and around 57 percent in the Lamesa area.
The Lubbock and Lamesa offices expect to class 1.9 million and 700,000 bales, respectively, for a 2013-crop total of 2.6 million. The area served by the two offices is larger than that in the High Plains crop districts of 1-North and 1-South where the crop is pegged at a combined 2.445 million statistical bales, down 17 percent from last season.
Across the entire U.S. Cotton Belt, the harvest advanced 10 percentage points to 78 percent complete during the week ended Nov. 24, USDA reported, 10 points behind a year ago and five points behind average.
Classing of upland cotton reached 6.105 million running bales as of Nov. 21, down from 9.901 million bales a year ago. Cotton tenderable on futures contracts improved to 62.4 percent, against 56 percent last year.
Meanwhile, trend-following funds sold 1,753 lots in futures-options combined in the week ended Nov. 19 to boost their net shorts to 5,783 lots, their largest net short position since Nov. 13, 2012.
Index funds’ activity was almost balanced as they sold a net 32 lots to nudge their net longs down to 64,411, while traders with non-reportable positions sold a net 1,245 lots to hike their net shorts to 5,565 lots.
Commercials bought a net 3,030 lots, covering 11,957 shorts while liquidating 8,927 longs to reduce their net shorts to 53,063 lots.
Way To Go For Indian Exports In Trade With Japan
With trade between India and Japan at $18.51 billion, Tokyo accounts for a 2.34% share in India’s global trade with petroleum products, oil meals, marine products, gems and jewellery and iron ore being the principal commodities of export to Japan while machinery, iron & steel, electronic goods, transport equipment and project goods are the major items that India imports.
Though a Comprehensive Economic Partnership Agreement (CEPA) was signed between India and Japan in 2011, the pact has led to imports from Japan increasing at a faster rate than exports from India. In 2012-13, India’s exports to Japan were $6.10 billion while the imports stood at $12.41 billion, leaving a trade deficit of $6.31 billion.
The agreement covers goods, services, rules of origin, movement of natural persons, telecom, financial services, investment, IPRs, government procurement, sanitary and phytosanitary measures, customs procedures and cooperation in other areas and the two sides have set a bilateral trade target of $25 billion by 2014.
Significantly, the presence of Japanese companies in India has increased from 555 sites in 2008 to 1,422 sites in 2011 and is expected to reach 2,500 sites by 2015. Japan has partnered India in several high-key, high-value, high-priority projects like the Western Dedicated Freight Corridor Project and the Delhi-Mumbai Industrial Corridor (DMIC) Project.
From April 2005 to March 2013, the cumulative Indian investments into Japan are around $371.46 million. On the other hand, according to JETRO, Japanese investments in India are around $15.93 billion, inclusive of foreign direct investment as well as portfolio investment and M&A.
In September this year, the DMIC trust cleared six projects with a proposed investment of R1.1 lakh crore.
This includes an integrated industrial township at Greater Noida, an integrated multi-modal logistics hub in Haryana and a new rail line from Bhimnath to Dholera. The DMIC project, valued at $90 billion, seeks to create mega industrial infrastructure along the Delhi-Mumbai Rail Freight Corridor. Japan is giving financial and technical aid for the project, which will cover seven states totaling 1,483 km. It has committed an investment of $4.5 billion.
Source:- financialexpress.com
Odisha Has Potential To Produce Rice Seeds For Export: Experts
Rice scientists have called for improving the quality of high yielding variety (HYV) rice seeds in the State. In Odisha, the seed replacement rate (SRR) of rice is low as compared to adjoining states of West Bengal and Andhra Pradesh. Even as there is a scope for increasing the SRR to more than 30 per cent, little is being done in this regard.
Participating at a workshop on ‘Addressing Barriers to Rice Seeds Trade between India and Bangladesh’ by Jaipur-based CUTS International here on Saturday, the rice scientists said because of logistic constraints, both production and supply of quality HYV rice seeds in the State could not be maintained.
Against a requirement of more than 67,000 tonnes of rice seeds to maintain a healthy SRR of 30 per cent, roughly about 50,000 tonnes is being supplied.
If quality standards are met with adequate supervision, Odisha has the potential to produce enough rice seeds not only for its own farmers but also to export to other states as well as neighbouring country like Bangladesh, they said.
Trilochan Mohapatra, Director, Central Rice Research Institute, Cuttack, said Bangladesh imports 90 per cent of its requirement of rice seeds from China, though importing it from India would have cost the country far less.
He felt it is the trade barriers between the two neighbours that are coming in the way of open trade.
He added that trade in agriculture inputs such as rice seeds can not only improve the economic situation of farmers and traders but also have larger long term political-economic benefits for countries involved in it.
Source:- newindianexpress.com
Psus Float Global Wheat Export Tenders For 1.95 Lakh Tonnes
Public sector trading firms STC, PEC and MMTCBSE 1.33 % have floated global tenders for the export of 1.95 lakh tonnes of wheat from overflowing government godowns.
This is the second round of bids for export of wheat procured by the Food Corporation of India (FCI) after the government lowered the floor price to USD 260 per tonne from USD 300 per tonne on October 30 to boost shipments.
State Trading Corporation of India LtdBSE 0.60 % (STC) and PEC Ltd have each invited bids for the export of 70,000 tonnes of wheat, while MMTC has sought bids for 55,000 tonnes.
The MMTC offer will close on December 12 and the PEC and STC tenders on December 16 and December 23, respectively. The shipments are scheduled between December and February.
According to the tender documents, STC is offering wheat from FCI stocks at Chennai port, MMTC from Pipavav port and PEC from Krishnapatnam port. The grain is of the current year.
In the first round of tenders for the export of 3.4 lakh tonnes of wheat from FCI godowns, the PSUs received bids in the range of USD 284.7-289.9 per tonne, which were higher than the base price.
The government plans to sell 2 million tonnes of wheat from FCI's surplus stock in tranches by June. The Corporation had 36 million tonnes of wheat as of October 1 compared with the actual requirement of 21.1 million tonnes.
In 2012-13, the government earned USD 1.4 billion from the export of 4.2 million tonnes of wheat by PSUs. Indian wheat fetched an average price of USD 311.38 per tonne in the previous financial year.
Source:- economictimes.indiatimes.com
Rupee Up 16 Paise Against Dollar In Early Trade
The rupee rose by 16 paise to 62.28 against the dollar in early trade today at the Interbank Foreign Exchange after the economy grew by a higher-than-expected 4.8 per cent in the September quarter.
Forex dealers said increased selling of the US currency by exporters, a higher opening in the domestic equity market and strengthening of euro and yen against the dollar overseas also supported the rupee.
The rupee had lost three paise to close at 62.44 against the dollar on Friday amid demand for the US currency from oil refiners. Meanwhile, the BSE benchmark index Sensex rose 70.67 points, or 0.34 per cent, to 20,862.60 in early trade today.
Source:- moneycontrol.com
Failure to provide notice under sec. 148A of CPC doesn’t ipso facto render order of CLB a nullity
CL: Failure to provide notice under section 148A of CPC does not, ipso facto, render order of CLB a nullity
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