Customs : When assessee had a right of appeal against Order-in-Original finalizing provisional assessment and when interest of revenue was already secured by bank guarantees having been furnished earlier, sending recovery letters even prior to dispatch of adjudication order to assessee and consequent recovery was invalid
Wednesday, 25 December 2013
Loss incurred by sub-account holder of FIIs to be treated as short-term capital loss and not as a bu
IT/ILT : Loss incurred from transaction in derivative by assessee, being sub-account FII, could not be treated as business loss rather it was to be considered as short-term capital loss which was eligible for adjustment against short-term capital gain arising from sale of shares
Trading receipt for outright purchase and export of granite would also qualify for sec. 10B relief
IT: Where assessee-company was engaged in manufacture and export of granite monuments, trading receipt on account of export of granite would qualify for exemption under section 10B
Pay It Forward Is Literally On The Menu At Local Coffee Shop
It’s no secret Windsorites like to pay it forward, and a new café in the city has put that option right on its menu.“There is a need for people to be kind to each other,” said Nancy Tessier, owner of Mashup Kaffe in Walkerville’s Windsor Business Networks hub.
Here, customers can order a caffe sospeso – which literally translates from Italian as “suspended coffee” – and leave it on the café’s tab for a person in need.
“All we need is someone to get it started, someone to see it,” Tessier said. “It doesn’t work if a community doesn’t get behind you.”
The tradition of the caffe sospeso is said to come from Naples, Italy, where someone who has a particularly lucky day orders two coffees at their local bar but receives only one, essentially paying one coffee forward in return for their good fortune. A person in need who visits the bar can then ask if there’s a sospeso available.
Tessier said she wanted to include the option in the café in the hopes of helping people develop more compassion.
It’s not uncommon to have customers walk in who can’t afford a full cup of tea or coffee, Tessier said. There’s the Windsor Youth Centre and Street Help/Unit 7 nearby.
Mashup’s caffe sospeso is a different spin on the pay-it-forward phenomena that happens periodically at some of Windsor’s busy drive-through coffee joints for events like Random Act of Kindness Day.
Employees at the Coffee Exchange in downtown Windsor said it happens occasionally that a customer pays it forward, though not in quite the same way as a caffe sospeso. A few months back, they said, a young man offered to pay for the coffees of three strangers behind him.
Customers at Mashup Kaffe, which is housed in the Windsor Business Networks hub, can order anything off the menu – coffee, tea or a specialty drink – and leave it on the café’s tab for someone in need.
According to Wikipedia, Naples launched an official caffe sospeso day in 2011, and according to the online magazine L’Altra Agrigento Online, the city of Lampedusa in Sicily did something similar to promote community involvement and support people in need.There’s even a non-profit organization in Italy called 1 Caffe working to bring back the tradition into Neapolitain bars and coffee shops.
Source:- blogs.windsorstar.com
Tea Exports To Iran Double
Tea exports to Iran have doubled to 16.47 million kg between January and September from about 8.48 million kg during the same period last year.
The near doubling of exports signifies a turnaround in business, which had taken a hit after the payment crisis in the wake of the US sanctions on Tehran. A memorandum of understanding with the Iran Tea Association in March also seems to be paying rich dividends. India and Iran had agreed on an export target of 30 million kg in two years as part of the MoU.
Iran is considered a quality market for high value orthodox and Assam tea. The Assam valley contributes about 550 million kg to the total domestic production of which about 50-60 million kg comprise orthodox tea. These have fetched remunerative prices.
“Iran is a quality market and buys tea from Sri Lanka and India. Trade with India suffered for a while because of the payment crisis in 2011. But the Tea Board helped and several delegations were exchanged,” said Sujit Patra, joint secretary of the Indian Tea Association (ITA).
“The ITA and the Iran Tea Association entered into an MoU in March. As a reciprocal measure, a delegation from Iran came to India in August. Iran exports have jumped up to September. The market is giving us directions that there is good acceptance of Indian tea,” he added.
Meanwhile, producers are focusing more on the orthodox variety. Shifting away from the production of crush, tear, curl (CTC) variety has proved lucrative.
The Tea Board is conducting stringent quality checks on export consignments to ensure standards. Tea councils have been set up for the purpose, one each in north and south India.
“A big change has happened and the situation improved with the rupee trade opening up. Overall, in the first 7-8 months of the year, orthodox tea prices have been 10-15 per cent higher over last year. Bigger demand has come in from Iran,” said Kamal Baheti, wholetime director at McLeod Russel India Ltd.
Iran seems to have made up for the loss suffered in Pakistan. Shipments to the neighbouring country stood at about 12.35 million kg during the period under consideration, a shortfall of 2.66 million kg over last year.
Pakistan buys a good amount of the CTC variety from Kenya, which recorded a bumper crop this year. Moreover, increased attention is being paid on shoring up shipments to the US, the UAE and maintaining momentum in Russia.
Source:- telegraphindia.com
Coal Demand May Not Exceed Over 60,000 Mw Capacity
Requirement of coal under the fuel supply agreements would not be for more than 60,000 Mw by 2015 due to various reasons, including slippages in the schedule for commissioning of projects, the Coal Ministry has informed state-owned CIL.
"The coal drawl would not be more than 60,000 Mw by March 2015 due to slippage in commissioning schedule, constraints in evacuation of power and due to not having long-term PPA," the Coal Ministry has said in a letter to CIL Chairman and Managing Director S Narsing Rao.
"The actual lifting of coal by power projects of 78,000 Mw capacity approved by the CCEA (Cabinet Committee on Economic Affairs) has not exceeded 37,695 MW so far," it said.
"It may also be confirmed whether as per commissioning schedules/PPA (power purchase agreement) provided so far, the total supplies would not exceed (the power projects' capacity of) 60,000 Mw up to March 31, 2015," it added.
As on date, the total commissioned capacity is 41,461 Mw (38,821 Mw long term linkage + 4,640 mw tapering linkage) out of the 78,000 Mw capacity approved by Cabinet for signing of FSA (Fuel Supply Agreements), the letter said.
Coal Minister Sriprakash Jaiswal had earlier said that 85 percent fuel supply pacts have been signed and the remaining would also be done once technical glitches are addressed.
Amid continuous delays, the Cabinet Committee on Investment (CCI) had earlier said that timelines for signing of fuel supply pacts for power projects of 78,000 Mw capacity should be met.
Two deadlines set recently for signing of the fuel supply agreements by CIL with the power producers could not be adhered to. CCI had even directed the Power Minister to review the progress of the power projects on a daily basis with the secretaries of both Power and Coal Ministries.
Coal India has to sign 173 FSAs with power companies for a total capacity of 78,000 Mw as directed by the Coal Ministry.
Source:- business-standard.com
ITAT accepts insurance value of cars instead of its WDV for wealth tax purposes
WT: Where assessee-company owned several motor cars, 80 per cent of insurance value of motor cars to be accepted for wealth tax purpose instead of written down value of motor cars
Investors Accumulate Textile Stocks In Wake Of Getting Gsp Plus Status
Ironically, despite the security and energy problems, investors on the Karachi bourse have been busy accumulating stocks of textile companies.The buying spree started more than one and a half month ago when it became clear that the country would win the Generalised Scheme of Preferences (GSP) Plus status from the European Union (EU).
Analysts observed that the investors pumped money into the textile sector mainly in anticipation of the GSP Plus status that was expected to give a significant boost to textile exports. After a long wait, the country eventually got the GSP Plus status on December 12 for three years, starting from January 2014.
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According to Invest Capital research house, “a gigantic price appreciation (in shares of textile companies) ranging from 16% to 67% has been recorded from November 1 to December 17 on expectations of higher textile exports in coming months.”
The brokerage house took a sample of 10 volume leaders (ignoring loss-making companies) of the textile sector listed on the Karachi bourse and analysed them on the basis of key variables.
In most of the five trading sessions on the Karachi Stock Exchange (KSE) from December 18-24, the textile sector continued to support the market, according to reports prepared by Sherman Securities.
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Investors got the decisive signal about GSP Plus in the first week of November, when the country won majority vote in the European Union’s International Trade Committee.
“The anticipation and initial reaction to GSP Plus has been positive for the textile sector,” JS Global Capital analyst Atif Zafar said. “It seems that the buying spree in textile stocks will continue in the near future.”
In fiscal year 2012-13, the textile sector outperformed the benchmark KSE 100-Share Index by a big margin.
According to a sample of Topline Securities based on selected 55 textile companies including spinners, weavers and composites, the textile sector gave a huge return of 94% against the benchmark KSE-100 index return of 49% in 2012-13.
Profits of these listed textile firms increased by 150% to Rs30.6 billion in FY13 compared to just Rs12.3 billion in FY12.
With strong fundamentals like stable cotton prices and depreciation of the rupee, margins of the textile sector have grown strongly. Now that the country has secured the GSP Plus status, its exports are expected to grow by $1 billion a year over the next three years.
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Pakistan exported over $13 billion of textile products in FY13, almost half the total exports of $24.6 billion in the same year.
Threats to portfolio investment
With positive sentiments about the textile industry, almost all analysts appear upbeat on the portfolio investment in this sector. However, some say incoming portfolio investments may slow down if export-oriented industries fail to meet orders owing to the energy crisis.
“One of the biggest concerns is that whether the country would be able to meet textile orders that are expected to come after the GSP Plus status,” asked Zafar. “The energy crisis, especially gas shortages, is going to hit textile exports in the near future.”
Source:- tribune.com.pk
Walt Disney May Stop Sourcing Goods From Pakistan
This strategy was being prepared in consultation with the stakeholders to address concerns of US companies, he said, adding Pakistan, on its part, was striving to get its Worldwide Governance Index (WGI) ranking upgraded by 2014.
Speaking to members of the Pakistan Textile Exporters Association (PTEA) here on Wednesday, Qureshi pointed out that the US was a major export destination for Pakistan and elimination of Pakistan from the Permitted Sourcing Countries list would lead to a huge loss of export earnings.
Walt Disney Company claims to be the world’s largest provider of licences, since consumer products of Disney brand are being produced by thousands of independent vendors working in thousands of manufacturing facilities around the world.
As part of an ongoing review of its policies and procedures, Walt Disney Company has made changes to its sourcing guidelines that will improve management to meet the challenges associated with a complex global supply chain.
Underlining the adverse impact of such a move, PTEA Chairman Sheikh Ilyas Mahmood said the revision in Disney’s policies would have implications for textile exports from Pakistan.
“This decision has the potential of triggering a snowball effect as Marvel, the subsidiary of Walt Disney, will follow suit,” he cautioned.
Likewise, other major retailers such as WalMart, Target, Sears, Kmart, Macys and Gap may also be forced to stop sourcing their products from Pakistan.
The loss to textile business could run into millions of dollars, thousands of workers would be unemployed and small and medium-sized enterprises would shut down, Mahmood said. “If European textile brands follow suit, the loss will be exponential.”
Textile exporters are estimated to lose export orders worth $150-200 million per year and 25,000 people may lose their jobs.
Federation of Pakistan Chambers of Commerce and Industry Vice President Azhar Majeed Sheikh said Pakistan had been fighting the war on terror since 2001 as a frontline ally of the US and had continued to pay a heavy price in terms of both economy and security.
Source:- tribune.com.pk
Commerce Ministry For Scrapping Onion Export Floor Price
The Commerce Ministry is in favour of removing the minimum export price for onions and allowing exports without any restriction as its prices have softened across the country.
Responding positively to Agriculture Minister Sharad Pawar’s suggestion of doing away with the floor price, Commerce Minister Anand Sharma has sought a quick review of the situation from the inter-Ministerial committee on onions.
“The Minister (Anand Sharma) is comfortable with the Agriculture Minister’s suggestion of removing restrictions. He has asked for a quick review following which the necessary action would be taken,” Director-General of Foreign Trade Anup Pujari told Business Line. Last week, the Government lowered the MEP on onions to $350 a tonne from $800.
Exporters have been complaining that exports at the current floor price are not feasible as global prices are much lower.
The minimum export price was raised twice between September and November this year to curb spiralling price of onions.
It was fixed at $1,150 in early November when domestic onion prices touched Rs 100 a kg in some retail outlets.retail prices
With retail prices now at comfortable Rs 20-30 a kg, the Commerce Department has been lowering the floor price.
The inter-Ministerial group on onions, headed by Joint Secretary in the Commerce Ministry Asit Tripathy and comprising senior officials from Agriculture, Finance and Consumer Affairs Ministries, is likely to meet soon.
“The inter-Ministerial group will also see if there is a need for tinkering with the minimum export price at all. If domestic prices are higher than global prices, then removing the floor price may not be of any consequence to traders,” another official said.
The Commerce Ministry had earlier pointed out that the spiralling domestic prices of onions were not due to exports but due to hoarding.It had asked States to crackdown on hoarders so that they release onions in the market.
Source:- thehindubusinessline.com
Centre To Help Import Grape Varieties For Good Quality Wine
The central government has decided to provide financial assistance for the import of grape varieties to help domestic wineries produce good quality wine as well as table-grapes.
This was disclosed by the Union agriculture minister Sharad Pawar on Wednesday at a programme, organised by the Indian Grape Processing Board (IGBP), to announce the wine festival 'Indian grape harvesting festival : 2014' to be held next month.
He said, "Some wine grape varieties were imported in the past and they are being used to make wine. The grape-growers associations are also importing some more varieties. We have decided to provide all financial assistance for research and import of wine grape varieties."
Pawar added, "The grape growers are producing good quality grapes in the district. Apart from that, we need to increase the export of both grapes and wine, with major focus on quality. This was the main objective behind setting up of the Indian Grape Processing Board (IGPB). The government is ready to provide any help required for the development of the wine industry."
Ashok Gaikwad, president of Maharashtra Draksha Bagaitdar Sangh, said "The Indian (table-grape) varieties take around four months to 120 days to develop and they also require lot of pruning, which is generally done in September or October. Most times, monsoon affects the vineyards in September. Hence, we were in search of those varieties that can be developed in less than three months and require little pruning. We recently visited South Africa to study the table-grape varieties planted there. We have selected some varieties and are in talks with some nurseries there."
Source:- timesofindia.indiatimes.com
Gold-Hungry Traders Tap Indians Living Abroad
Non-resident Indians are bringing gold into the country by taking advantage of rules that allow each individual to carry 1 kg of the metal, helping traders cope with restrictions on imports during the peak wedding season.
India, vying with China to be the top buyer of gold, has choked imports to narrow its trade gap and curb the outflow of dollars. The measures included raising the import duty to a record 10 percent and making it mandatory to export as jewellery 20 percent of all gold imports.
But non-residents who have stayed abroad for more than six months can bring in gold on payment of the import duty, irrespective of end use. Such is the demand that some traders are paying passengers' air fares if they agree to carry gold.
About 80 kg of gold was brought in by non-resident Indians (NRIs) this month on a flight from Dubai to Calicut in the southern state of Kerala, said an airport official who did not want to be identified.
Travel agents typically book about 20-30 tickets on a flight on behalf of NRIs, who are accompanied by people working for traders, said Bachhraj Bamalwa, director of the All India Gems and Jewellery Trade Federation, an umbrella body of more than 300,000 jewellers.
"These NRIs pay the duty, so there is nothing illegal about it," Bamalwa said. "These people are mainly labourers from Tamil Nadu or Kerala, who are given a free ticket."
Government officials estimate NRIs have imported a tonne of gold since mid-November, compared to nearly nothing in previous months. That's a boon for jewellers, many of which have been operating at half capacity due to a lack of stock.
Official gold imports fell to about 21 tonnes in November, less than half the monthly requirement, data from metals consultancy Thomson Reuters GFMS showed.
Gold premiums in India rose to a record $160 per ounce on London prices earlier in December.
"To take advantage of high premiums, agents have been increasingly successful in scouting for NRIs, and pay for their partial or full air fare," said Sudheesh Nambiath, an analyst with Thomson Reuters GFMS.
NRIs can save 125,000 to 150,000 rupees per kg on premiums even after paying the import duty, industry officials said.
The import curbs are also encouraging smuggling, with customs officials between April and September seizing nearly double the amount of smuggled gold nabbed in all of 2012, according to the customs department.
Source:- in.reuters.com
No interference with CLB's interim order unless it was passed in irrational or untenable manner, rul
CL: Where interim order was passed by CLB with a view to protect interest of parties, unless it was shown that discretion was improperly or irrationally exercised or was exercised in a wholly untenable manner, there was little scope for interference with such an order under section 10F
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