No denial of sec. 80P relief to assessee if it was credit co-operative bank and not credit co-operat

IT : Where assessee was not a credit co-operative bank but a credit co-operative society, its claim for deduction under section 80P(2)(a)(i) could not be rejected by invoking exclusion clause of sub-section (4) of section 80P

AO should have a cogent reasons for rejecting books of account prepared on basis of bank entries

IT: Once books of account of assessee have been prepared based mainly on bank entries and other details, same should be rejected only by cogent reasoning

No benefit of input tax when dealer didn't disclose actual taxable turnover in return and didn't pay

CST & VAT : Kerala - Benefit of input tax will not be available if dealer does not disclose actual taxable turnover in return and does not pay tax

Addition affirmed on reduced G.P. rate on unaccounted sales as no perversity was pointed out in appr

IT: Where Assessing Officer had rejected books of account of assessee under section 145(3), estimation of gross profits for both years at 20 per cent by Tribunal as against 40 per cent made by Assessing Officer on unaccounted sales was justified as there was no perversity pointed out in approach adopted by Tribunal

ITAT directs TPO to make TP adjustment by excluding comparables with related party transaction excee

IT/ILT : While making computation of ALP under section 92C bench mark of related party transactions is to be adopted at 25 per cent

Mere non-observance of procedure doesn't lead to denial of adjustment of excess service tax paid by

Service Tax : Where assessee had paid excess service tax owing to estimation of its tax liability of operations spread across remote areas as well, such bona fide excess payment may be adjusted against service tax liability of subsequent period even if procedure has not been followed

SEBI prescribes registration guidelines for 'Research Analysts'; provides instructions for filling r

SEBI/INDIAN ACTS & RULES : How to get registered as a research analyst and instructions for filling in Form A

RBI lays down detailed guidelines on computation of 'Liquidity Coverage Ratio'

BANKING : Basel III framework on liquidity standards – Liquidity Coverage Ratio (LCR), liquidity risk monitoring tools and LCR disclosure standards

Banks are no longer required to submit additional information along with their 'Annual Branch Expans

BANKING : Branch Authorisation Policy – Information to be submitted by banks along with Annual Branch Expansion Plan (ABEP)

IRDA asks insurance brokers to compute their net worth as per the method prescribed by Companies Act

INSURANCE : Calculation of NET Worth

IRDA advises insurance brokers to appoint statutory auditors for maximum duration of 5 years

INSURANCE : Appointment of Auditors by Insurance Brokers

NR can make remittance of inherited assets only after payment of applicable taxes in India

FEMA/ILT/INDIAN ACTS & RULES : FEM (Remittance of Assets) (Amendment) Regulations, 2014 – Amendment in Regulations 4 and 7

Haryana Govt. can dispense with the condition of previous notice for amending VAT schedules and Rule

CST & VAT/INDIAN ACTS & RULES : Haryana Value Added Tax (Third Amendment) Ordinance, 2014 – Amendment in Sections 59 & 60 of the Haryana Value Added Tax Act, 2003

Supreme Court admits SLP against HC's ruling holding hiring of cabs on km basis as rent-a-cab servic

Service Tax : Where High Court held that : (a) hiring of cabs on per Km. basis is also liable to service tax under rent-a-cab services; but (b) extended period was not invocable, as assessee held bona fide belief as to non-taxability, Supreme Court admitted cross Special Leave Petitions filed by assessee and revenue

I-T department designed a new functionality for generating MIS of auditable cases under Secs 143(3),

IT : Section 143, read with Sections 144 and 147 of The Income-tax Act, 1961 - Assessment – Functionality for CSIT(Co) for Generation of Mis of Auditable Cases

Forex dealing couldn't be deemed as speculative if it was incidental to the main business of assesse

IT : Once main business of assessee is identified, if some incidental activities or transactions or dealing in foreign exchange is undertaken but that is also related to some extent to main business activity, then, it could not be said that assessee is in speculative business

Machinery installed at premises of other Co. was depreciable as it was used by assessee for its busi

IT : Where machinery purchased by assessee, a pharmaceutical company, was used by other company to manufacture plastic bottles for products of assessee, for business of assessee, it was entitled to depreciation

Transportation cost upto buyer's place is eligible for credit if ownership is transferred at buyer's

Cenvat Credit : Where, as per tenders, price is inclusive of FOR destination delivery at cost of assessee and ownership is transferred only at place of buyer, 'place of removal' would be place of buyer and transportation upto that place would be input service

TPA wasn't liable to withhold taxes on sums remitted to hospitals on settlement of medical insurance

IT: TPA collected amount of medical expenses billed by hospitals on insured persons from insurance companies and remitted same to hospitals, has no TDS liability not under section 194J

No TP adjustments if assessee was benefitted in reciprocal arrangements with its foreign AEs for cou

IT/ILT: TP adjustments had not be made if assessee was actually benefitted from reciprocal arrangements with its foreign AEs + The Assessee demonstrated that it actually benefitted in the arrangement where it delivered inbound packets in India as courier in lieu of delivery of outbound packets by AEs as couriers in their respective country.

Bombay High Court directs DRP to follow ratio of Vodafone’s case on TP issue of undervaluation of sh

IT/ILT: The Bombay High Court followed the case of Vodafone India Services (P.) Ltd. v. Union of India [2014] 50 taxmann.com 300 (Bombay) and held that shortfall received on issue of equity shares (when benchmarked with ALP) to non-resident AE could not be characterized as income from international transaction. Thus, the DRP was directed to follow the verdict of Vodafone (supra) to settle the dispute.

CBDT extends due date of furnishing of returns and audit reports to March 31, 2015 for taxpayers in

IT : Section 119 of The Income-tax Act, 1961 - Income-tax Authorities - Instructions to Subordinate Authorities – Further Extension of Due Date for Furnishing of Return of Income in Cases of Assessees in State of Jammu and Kashmir

Resident undertaking transactions of Rs 100 crores can apply before AAR to determine his tax liabili

IT/ILT : Section 245N(b)(iia) of The Income-tax Act, 1961 - Tax Liability of a Resident Applicant Determined by Authority for Advance Rulings – Specified Resident

One time exp. incurred on club membership fees and ISO certification allowable as revenue expenditur

IT : One time expenditure incurred by assessee for club membership fee is allowable as business expenditure

In case of provisional assessment, refund claim can be filed in 1 year of finalization of provisiona

Excise & Customs : Where assessments are on provisional basis and are yet to be finalized, question of limitation would not arise; hence, period of one year for filing refund claim of Special Additional Duty (SAD) of customs would be counted from date of finalization of provisional assessment

Issue of fraud couldn't be raised as preliminary objection to dismiss petition for rectification of

CL: Disputed questions of fact relating to fraud and fabrication of documents cannot be raised as a preliminary objection at threshold to dismiss petition under section 111/111A

Additions affirmed for loans given to parties with dubious identity and credit worthiness

IT : Where assessee-company had given loans to parties whose identity had not been proved, their creditworthiness not established and genuineness of transactions not demonstrated, addition made was justified

RBI removes restriction on gold import; withdraws 20:80 scheme

FEMA/ILT : Import of Gold (Under 20: 80 Scheme) by Nominated Banks / Agencies / Entities

Compensation received by assessee for surrendering rights of an industrial plot is capital receipt

IT : Where assessee had acquired an industrial shed for running a manufacturing business but said sale was set aside by Supreme Court, since assessee was clearly deprived of making future profits by surrendering its profit making structure compensation received against such surrender was to be treated as capital receipt

Airtime charges and license fee charged separately from subscribers of pager wouldn't form part of s

CST & VAT (Maharashtra) : Where assessee was importer and reseller of hardware in general and radio pagers in particular, airtime charges and license fees charged by assessee from subscribers under contract of selling activated pager did not form part of sale price within meaning of section 2(29) of Bombay Sales Tax Act

No penalty if AO didn't give independent opinion that old asset was acquired mainly to claim higher

IT : Where AO failed to give independent finding that there was a deliberate design on part of assessee to inflate cost of acquisition so as to claim higher depreciation, penalty could not be imposed

Co. dealing with software products isn't functionally comparable with a co. which is software servic

IT/ILT: A company being into software products is functionally different as it owns its own intangibles, has huge software product revenues, brand, etc. and cannot be considered as a comparable to a mere software service provider

One-time premium paid to lessor for transfer of interest in immovable property isn't liable to ST

Service Tax : All leases of immovable property would be covered for service tax whether lease is short-term or long-term or lease perpetuity; however, "premium" or "salami" paid by lessee to lessor for transfer of interest in property from lessor to lessee is not liable to service tax, as same is not for continued enjoyment of property leased

Liquidator couldn't direct creditor to refund excess payment when his claim was disbursed after due

CL: Where in winding-up of company, claim of appellant creditor had been disbursed after scrutiny and examination of relevant records, appellant creditor could not be harassed unreasonably by re-examining its claim and demanding any refund of excess payment made to him

India: Stainless Steel Mills Demand Protection Against Cheap Imports From China

The operating capacity of India’s stainless steel (SS) mills has declined to a low of 55 per cent, says the industry, due to cheap imports from China and other free trade agreement (FTA) countries, amid weak demand. The capacity utilisation was 65-70 per cent a year before.

Speaking on the sidelines of the announcement of Indinox 2015, a two-day SS industry event, scheduled to be held between January 24 and 27, 2015, at Gandhinagar, N C Mathur, president of the Indian Stainless Steel Development Association (ISSDA), said: “The SS mills have steadily invested $5 billion since its peak days of 2006-07, to create an overall installed capacity of around five million tonnes. Against that, we estimate a total production at 2.6-2.7 mt in 2014-15.”

This is because of dumping of Chinese goods into India, with some of these of substandard quality, he alleged.

Imports from China, Taiwan and Korea are estimated to have risen 150 per cent in about seven months. ISSDA says imports have gone up to around 40 per cent of annual consumption. In 2013-14, total import from all countries was 100,000 tonnes. However, says the body, imports from China alone have been 250,000 tonnes in the first half of the current financial year.

“The biggest problem Indian SS mills face is high electricity and logistics cost, unbearable rate of interest on working capital and continuous investment on pollution control equipment. Raw material exports from China attract a high duty of up to 40 per cent, to discourage shipment of inputs like SS scrap or ferro nickel. Over and above, the Chinese government is incentivising up to 13 per cent on export of SS, apart from low interest rates on working capital loans and cheap power. The industry will be protected only with a minimum differential duty of 7.5 per cent, which currently exists at five per cent,” said Hiten Bhalaria, managing director of Bhalaria Meal Craft, an SS utensil manufacturer and exporter.

Jindal Stainless has invested around Rs 12,000 crore in its 1-mt project in Odisha, currently at 30 per cent of its operating capacity. Its Hisar facility is currently operating at 60-70 per cent capacity.

“When Prime Minister Narendra Modi is emphasising on ‘Make in India’, here is an industry which is bleeding due to imports, despite having enough production capacity. We certainly need protection in terms of anti-dumping duty. The difference between raw material and finished product imports is currently five per cent in India as against 10 per cent in China,” said Mathur.

The industry also wants a relook at FTAs. The industry says import from countries with which we have signed such agreements are rising significantly, without any jump in our exports. India is the third largest global producer and second largest consumer of SS. The market for 2013-14 was at 2.5 mt, of which flat products accounted for about two mt. With a low per capita consumption of 2.1 kg (as against the world average of about five kg), there is a lot of potential for future growth. However, a slowing in the infrastructure sectors has been a major obstacle.\

Souce:hellenicshippingnews.com

Kakinada Anchorage Port To Become Rice Export Hub

The Anchorage Port in Kakinada has the potential to become rice export zone, provided the government focuses on developing infrastructure and facilities in the port, besides relaxing some norms pertaining to the exports.

As the East and West Godavari districts are known for paddy procurement and record yields every year, the surplus paddy is being exported to foreign countries through the anchorage port. Following the lifting of ban on rice exports in September 2011, there is a steady increase in rice exports and the exporters are focusing more on the African countries.

In 2012-13, 26.73 lakh metric tonnes of rice had been exported from the port. However, the year 2013-14 witnessed a drop in the export activity due to Samaikyandhra movement that lasted for over three months. The exports were to the tune of 22.67 lakh metric tonnes during the year.

Now, the government has changed the levy policy, providing an opportunity to improve the exports. Till the last crop season, the rice millers used to allocate 75 per cent of the rice purchased to the government towards the levy and sell the remaining 25 per cent in the open market that includes the exporters.

As per the revised policy, the levy is only 25 per cent and the remaining 75 per cent of the stocks can be sold in the open market. “This policy is going to be a boon for rice exports over a period of time. Moreover, it is going to be a win-win for both the farmer and the miller,” observes B.V. Krishna Rao, managing director of Pattabhi Agro Foods, one of the largest exporters of non-Basmathi rice from southern India.

East Godavari district alone produces 20-25 lakh metric tonnes of paddy every year and the West Godavari contributes more or less an equal quantum. Till now, the farmers are used to cultivate levy-oriented varieties such as ‘Common’ and ‘Grade A’ and the millers too encouraged the same, as they can clear a major chunk of stocks towards the levy. “Now, the farmers can focus on cultivating superfine variety of rice, which has a greater demand in the European market. By opting for these varieties, the farmers can earn more without increasing the investment and the millers and exporters too can get their margins,” explains Mr. Krishna Rao.

Echoing similar opinion, progressive farmer Kovvuri Trinadh Reddy says the government should come out with a clear policy on the levy and create awareness among farmers about the new cultivable varieties. “The farmer will get benefited only when the government ensures hassle-free export of rice,” he says.

Source:- thehindu.com

India To Reduce Export Documents From Nine To Three By April 1, 2015

The Indian government has fast-tracked efforts to reduce export barriers and improve Ease of Doing Business to boost manufacturing and revive exports.



India’s exports slipped into the negative list in October 2014 y/y for the first time since April 2014. Exports have declined due to several factors such as dipping global commodity prices, strengthening rupee against the USD, and a slowdown in Europe. Experts say that the uncertainty over the release of the new Foreign Trade Policy isn’t helping exporters and the government must take immediate steps to address the decline in exports.



Earlier this month, M Rafeeque Ahmed, President, FIEO, had said that the new Foreign Trade Policy (FTP 2014-19) must be announced soon or the previous one allowed to continue until March 31, 2015, to remove ambiguity among exporters. The new FTP should focus on Marketing, Branding, e-Commerce, Services exports, Project exports, High technology exports and improve Ease of Doing Business, the FIEO chief had said.



India is placed at the 142nd position among the 189 countries in the World Bank’s ease of 2015 Doing Business rankings. In the “Trading Across Borders” sub-index, India has slipped four points to the 126th rank this year.



In response, the Commerce Ministry has announced a slew of measures in the last few days to address the situation. It said that the government will reduce the number of documents required for exports from the current nine to three by April 2015. This will put India on par with other nations such as Singapore which top the list in both “Ease of Doing Business” and “Trading Across Borders” sub-index.



The government has also assured that the Goods and Service Tax (GST) Bill will be introduced in the ongoing Winter Session of the Parliament. GST is expected to play a major role in making Indian companies and goods competitive in the global markets and encourage investments in the manufacturing sector.



The government is also planning a single window clearance system for businessmen to set up projects in India and make use of technology to help get online approvals from various ministries. According to official sources, eight states have already implemented online registration of MSME companies, and talks are on with other states as well.



Approvals regarding labour procedures are expected to become easier with the launch of a labour portal which will help businesses get clearance of 16 labour laws at one place. Six states have also joined portal, according to official sources.

source:- thedollarbusiness.com

'Vijaya Bank' couldn't be treated as an assessee-in-default on non-submission of Form 15G/H before C

IT : Where assessee-bank had declaration of payees in prescribed form i.e., Forms 15G and 15H with it at time of payment of interest, but it could not deposit said Forms with Commissioner, assessee could not be held liable to deduct tax therefrom under section 194A as it was only a technical breach

In case of FOR sales, transportation upto customer's premises is eligible for credit

Cenvat Credit : If sales are on FOR basis, with risk being borne by manufacturer till delivery to customer and composite value of sales includes value of freight involved in delivery at customer's premises, place of removal would be at customer's premises and transport upto customer's premises would be eligible for credit

Fiscal Relief For India As Opec Maintains Output

Crude oil prices are set to decline further, with the Organization of the Petroleum Exporting Countries (Opec) deciding to maintain output at 30 million barrels per day, resisting calls from Venezuela that the group stem the slide in prices.



Minutes after the announcement, Brent crude slipped by $3 to $74.75 a barrel. Analysts now expect prices to inch closer to $65 a barrel. The Opec move is good news for emerging economies, such as India, which have seen deficits spiral with their oil import bills ballooning over the past few years.



India, which has been battling high inflation for several years, is heading for happier times from a macroeconomic point of view, as the inflation target set by the Reserve Bank of India can now be easily met. The central bank was earlier factoring in oil at around $100 a barrel. The 21 per cent decline in price from that level would help lower inflation. For every $10 a barrel fall in crude oil prices, the current account deficit can narrow by 40-50 basis points.



Barclays India economist Siddhartha Sanyal says: "Given that petrol and diesel prices are now determined by market, the fall in import costs will have an immediate impact on inflation. We are looking at retail inflation averaging around six per cent in 2015; that is significantly lower than the long-term average of 7.3 per cent. This is also true for the wholesale inflation rate, which can in 2015 average about 100 basis points lower than the long-term average. For the current account deficit, our estimate is $32 billion, or about 1.6 per cent of gross domestic product."



Others said India's import bill could meaningfully decline, helping Finance Minister Arun Jaitley meet his fiscal deficit target of 4.1 per cent of GDP. In fact, economists believe the fiscal deficit could contract to 3.9 per cent of GDP after Thursday's Opec decision.



Indranil Sen Gupta, India economist at Bank of America Merrill Lynch, says: "Lower crude oil prices obviously improve India's macro conditions. A five per cent decline in petrol and diesel prices bring Consumer Price Index-based inflation down by 45 basis points." He estimates fiscal deficit at 4.1 per cent of GDP in 2014-15 and 3.6 per cent the next year. Bank of America Merrill Lynch expects crude oil prices to average $96 a barrel in 2014-15 and $91 a barrel in 2015-16.



But weak oil prices are not so positive for upstream oil companies like Cairn India. Oil producers realisations will come under pressure if global crude oil prices continue to weaken. Chirag Dhifule of LKP Securities says any upside in crude oil prices would be positive for Cairn India and ONGC. Given that the production has not been lowered, it is a positive for state-run oil marketing companies. The subsidy burden would not return, given that both petrol and diesel prices do not factor in any subsidy at current prices.



For this reason, the fall in inflation will be sharper in coming months, as imported inflation has significantly moderated with oil prices declining and rupee remaining stable despite the unwinding of the quantitative easing programme of the US Federal Reserve. The outlook for India continues to improve with this latest move of Opec.

Source:- business-standard.com

Rupee Falls To 62/Dollar Tracking Broad Dollar Gains

The rupee fell to a low of 62 against the dollar compared with Thursday's 61.8750/8850 close. Month-end dollar demand from importers is likely to hurt the Indian unit.



Gains in shares and resulting capital inflows may limit a very sharp upside to the pair.



Indian shares rise to record highs ahead of GDP data, RBI policy.



Almost all Asian currencies are weaker compared against the dollar.



Index of the dollar against six major currencies trading up 0.5 per cent.



USD/INR pair is seen in a 61.70 to 62.10 range on Friday.



GDP data, due post market hours, and the RBI policy review on Tuesday are in focus.

Source:- ndtv.com

No penalty on incorrect imposition of interest when addition of interest was set-aside by appellate

IT : Penalty under section 271AAA can't be levied on account of incorrect imposition of interest which got deleted

Possession of assets taken over by secured creditor on default in repayment of loan couldn't be trea

IT: Where secured creditor took over possession and control of assets of assessee due to default committed in repayment of loan, it did not amount to transfer of assets within meaning of section 2(47)

Stay granted on condition that assessee couldn't seek adjournment won't be vacated on adjournment of

IT : Where assessee was granted stay of demand by Tribunal on condition that assessee would not seek adjournment of appeal but later on, Tribunal itself adjourned appeal, stay order did not stand vacated

Sludge and pulper waste emerged during manufacturing weren't liable to excise duty even if they were

Excise & Customs : Sludge and pulper waste emerges during course of manufacture of paper and paper board is : (i) not a manufactured product; hence, same is not liable to duty even if it is marketable; and (ii) not classifiable under tariff item 47 07 90 00

ITAT quashed sec. 148 notice as AO had taken approval of CIT instead of joint CIT for issuing notice

IT : Where Assessing Officer who was below rank of Joint Commissioner, reopened assessment in case of assessee by issuing notice under section 148 after taking permission from Commissioner instead of Joint Commissioner, it was to be regarded as invalid notice under section 151(2)

Banks can extend loans to individual investors against long-term bonds issued to them to finance inf

Banking : Issue of Long term Bonds by Banks – Financing of Infrastructure and Affordable Housing

Govt. tweaks norms for listing of securities on stock exchange

SEBI/INDIAN ACTS & RULES : Securities Contracts (Regulation) third Amendment Rules, 2014 – Amendment in Rules 19 and 19A

Sec. 148 notice quashed as it was issued after 6 yrs even when assessee didn't have any asset locate

IT : Where assessee did not have any asset outside India and, therefore, there was no question of having any income in relation to such an asset, in such a case, notice issued under section 148 after expiry of six years from end of relevant year relying upon provisions of section 149(1)(c) was not sustainable

HC directed Commissioner to decide rate of tax on aluminum conductor afresh as he hadn't passed spea

CST & VAT : Assam - Where order of Commissioner determining rate of tax on aluminium conductor, didn't contain any reason for coming to conclusion, matter was required to be remanded back

HC ordered refund of amount paid by bibber as seller had failed to deliver possession of auctioned a

CL: Petitioner was entitled to refund of amount paid by him pursuant to his successful bid, as seller had failed to deliver possession of auctioned assets

Payments made by Delhi Race Club for live telecast of horse races weren't covered within the ambit o

IT : Payment made by a race club for live telecast of horse races is not covered under section 9(1)(vi) and said amount, as such not being royalty, TDS was not required to be deducted

Interest earned by Co-operative society on surplus funds deposited in FD wasn't eligible for sec. 80

IT : Where assessee, a co-operative society, engaged in providing credit facilities to its members, deposited surplus funds in fixed deposits and earned interest thereon, said interest would be assessable as 'income from other sources' and, thus, not eligible for deduction under section 80P(2)(a)(i)

Revenue can rely upon statements recorded under sec. 131 while making addition for unexplained credi

IT : Under section 68 question is essentially of discharge of onus toward proving facts, based on positive materials, so that it is only proper and in order that either party furnishes to other all material it relies upon

Land acquired by mutual negotiation between parties won't attract TDS under sec. 194LA

IT : Where assessee had acquired land under Chhattisgarh Nagar Tatha Gram Nivesh Adhiniyam, 1973 by mutual negotiation hence, same could not be treated, as compulsory acquisition and provision of section 194LA would not be applicable

Income from providing seismic services was taxable under sec. 44BB if it was connected with PE of NR

IT/ILT : Revenue earned by a non-resident under a contract for providing seismic services in India is taxable under section 44BB only if it is effectively connected with PE of non-resident in India

Communication of non-certified copy of order by hand-delivery triggers time-limit to file appeal to

Service-tax : It is wrong to contend that 'date of communication of certified copy' is 'date of communication' for purpose of computation of time-limit for filing appeal to Commissioner (Appeals) under section 85; communication of non-certified copy by hand-delivery puts time-limit in motion

Bye-law of NSE prescribing limitation period of six months for reference of disputes to arbitration

SEBI : Byelaw 3 of Chapter XI of NSE Byelaws, to extent it prescribes limitation of six months for reference of disputes/claims to arbitration is void

I-T returns and info provided to tax authorities are exempt from disclosure under RTI Act

IT : Income-tax retruns and information provided to Income Tax Authorities by assessee are confidental and not required to be placed in pubic domain; given nature of income-tax returns and information necessary to support same, it would be exempt under section 8(1)(j) of Right to Information Act, 2005 in respect of individual and unincorporated assessees

ITAT quashes re-assessment concluded on basis of TP report where no proceedings were pending before

IT/ILT: The Assessing Officer cannot make a reference to TPO unless the income-tax return is pending before the AO and the time-limit for issue of notice under Section 143(2) is available. Thus, reassessment made on basis of such report is not sustainable in law.

No denial of sec. 80P relief when revenue failed to prove that society was accepting deposits from n

IT : In absence of any evidence on record that assessee society was accepting deposits from non-members also, Assessing Officer was not justified in rejecting assessee's claim for deduction under section 80P(2)(a)(i) taking a view that assessee was a primary co-operative bank and, therefore, provisions of section 80P(4) applied to assessee's case

No denial of credit merely due to different description of goods provided in transporter's records

Cenvat Credit : Merely because transporter's records contain different description of goods, department cannot deny credit especially when all parties in chain and even check-post records evidence receipt of inputs by assessee

IRDA takes away free look period from health insurance policies having tenure of less than one year

INSURANCE/INDIAN ACTS & RULES : IRDA (Health Insurance) (First Amendment) Regulations, 2014 – Amendment in Regulation 5 and Insertion of Regulation 19

No Indian Sugar Export Deals Signed Due To Doubts Over Subsidies

Indian traders have yet to arrange sugar export deals for the new season harvest as mills are not producing raw sugar due to uncertainty over whether the government will offer incentives, industry officials said.

A drop in exports by India, the world's second-biggest producer, would support global sugar prices and let rivals Brazil and Thailand increase shipments of the sweetener.

In the 2013/14 marketing year to Sept. 30, India exported 2.1 million tonnes of sugar, including 1.2 million tonnes of raws. By the end of November 2013, dealers had signed contracts for nearly 500,000 tonnes of raws but this year they've clinched none.

To help mills saddled with large stockpiles, India gave a subsidy of Rs 2,277 to Rs 3,371 ($37 to $54) a tonne for the production of raw sugar for export in 2013/14. After a change of government in May, no decision has yet been made about 2014/15.

"No one is producing raw sugar this year. Unless government announces a subsidy for exports, they won't start production of raw sugar," Sanjeev Babar, managing director of Maharashtra State Co-operative Sugar Factories Federation, told Reuters.

The western state of Maharashtra accounts for most of the raw sugar produced in India.

India's mills traditionally produce white sugar but a global glut has made exports difficult. To bring down inventory, mills produced raw sugar last year, taking advantage of rising refining capacity in Asia and Africa. They are currently producing only white sugar.

"We are not producing raw sugar since exporters are quoting very low prices," said Balasaheb Patil, chairman of Sahyadri co-operative sugar factory, which produced 25,000 tonnes of raw sugar last year. "There is no point in producing raw sugar unless we are sure about prices and the government subsidy."

Kamal Jain, managing director of Pune-based brokerage Kamal Jain Trading Services, said a stronger rupee had added to the pain caused by low global raw sugar prices.

"In the local market, prices will fall further if we fail to export. The government should quickly announce a subsidy to avoid distress sales by mills," Jain said.

Domestic sugar prices hit a nine-month low this month.

In 2014/15 India is set to produce surplus sugar for the fifth year in a row, putting further pressure on mills, which have to pay government-set prices to farmers for cane.

By Nov. 15, mills had produced 560,000 tonnes of sugar compared to 462,000 tonnes in the same period a year ago.

Source:- thehindubusinessline.com

Rupee Trades Marginally Weaker Against Dollar At 61.88

The Indian rupee was trading marginally lower against the US dollar in afternoon trade on Thursday, as dealers avoided taking huge positions ahead of the key economic data due on Friday.

The government will issue gross domestic product (GDP) data for the September quarter and fiscal deficit data for October on 28 November. A Bloomberg poll estimates GDP for the September quarter will be 5.1% as compared with 5.7% in the June quarter.

The local unit opened at 61.82 per dollar. At 2.54pm, the home currency was trading at 61.88 per dollar, down 0.05% from previous close of 61.85, while India’s equity benchmark Sensex index was trading at 28,366.59 points on BSE, down 0.07%.

Most of the Asian currencies were trading higher. South Korean won up 0.75%, Japanese Yen 0.32%, Philippines peso 0.21%, Malaysian ringgit 0.16%, Indonesian rupiah 0.07% and Taiwan dollar 0.06%.

The yield on India’s 10-year benchmark bond was trading at 8.153%, compared with its Wednesday close of 8.145%. Bond yields and prices move in opposite directions.

The Reserve Bank of India (RBI) on Wednesday announced a sale of government of India dated securities (G-secs) worth Rs.12,000 crore through open market operations (OMOs) on 1 December.A number of bank economists and treasurers say that a reduction in interest rates is unlikely at the central bank’s next monetary policy review on 2 December.

A survey of 10 economists and bank treasurers showed that no one is expecting an immediate cut in interest rates; instead they expect RBI governor Raghuram Rajan to wait until there is more clarity on the inflation trajectory and global developments such as commodity prices and monetary policy in the US, Mint reported.

Since the beginning of this year, the rupee has weakened 0.08%, while foreign institutional investors have bought $15.73 billion during the period from local equity markets.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 87.699, up 0.11% from the previous close of 87.607.

Source:- livemint.com

Exp. on construction of superstructure on leasehold premises was in nature of capital exp.; deprecia

IT: Where assessee company had constructed building on leased premises and was getting enduring benefit from it, said expenses incurred was to be treated as capital expenditure and would fall within ambit of Explanation 1 of section 32(1)

AO couldn't disallow genuine exp. when it was disclosed by recipient in his return of income

IT : Where recipient of commission payment accepted same and his return also disclosed amount received from assessee, no disallowance could be made under section 37

HC denied to review its order as petitioner was retracting its earlier stand taken during course of

IT: It is duty of Court to deal with all arguments/points raised by parties and if petitioner has chosen to take a stand during course of argument, petitioner cannot take a 'U' turn and say that judgment may be reviewed as points for determination were limited

Interest to be paid if duty was paid in instalment even if adjudication order didn't provide for lev

Excise & Customs : Where assessee seeks payment in instalments and said facility is granted subject to payment of interest, assessee cannot, later on, contest levy of interest itself after having availed instalment facility; this is so even if adjudication order did not provide for levy of interest

After investing huge sums in mutual funds assessee couldn't plead that it didn't incur exp. to earn

IT : Where assessee systematically invested in large number of mutual funds and, moreover, various mutual funds were liquidated during relevant year, assessee's explanation that no expenditure was incurred for earning tax free dividend income was a bold assertion liable to be rejected and, consequently, matter was to be remanded back to Assessing Officer with a direction to work out disallowance in terms of Rule 8D of 1962 Rules

HC decides TP issue of undervaluation of shares in favour of shell; follows ratio of Vodafone's case

IT/ILT : The Bombay High Court in the instant case held in favour of Shell India ('petitioner') on the issue of applicability of Transfer Pricing provisions in case of issue of shares. In this regard, the High relied upon decision in the case of Vodafone India Services (P.) Ltd. v. Union of India [2014] 50 taxmann.com 300 (Bombay). In case of Vodafone India (Supra) it was held that the jurisdiction to apply Chapter-X of the Act would occasion only when income arises out of International Transact

AO couldn't make addition alleging undisclosed cash purchases if payment was routed through bank

IT: Where purchases were actually made and payment was made by account payee cheques, no disallowance could be made on account of undisclosed cash purchases

Assessee was eligible for tax credit as Tribunal had failed to record any finding on forged tax invo

CST & VAT : UP VAT : Where assessee purchased timber from a registered dealer 'H' after payment of input tax and 'H' issued tax invoice and further assessee claimed for credit of input tax paid, in absence of any finding recorded by Tribunal that tax invoice was not genuine, claim of assessee could not be disallowed

HC directed SEBI to allow employee to occupy official quarter until disposal of appeal on vacation o

SEBI : During pendency of appeal against order directing vacation of official quarter by petitioner, SEBI was directed to allow petitioner to occupy said quarter till disposal of appeal

ALP adjustment had to be made only for international transactions with the AEs without extending it

IT/ILT - ALP adjustments could be made only in respect of international transactions with AEs and could not be extended to transactions with non-AEs. Thus, TPO was directed to verify the computation of ALP adjustment and exclude the transactions with non-AEs while calculating ALP under TNM method.

Sum paid to NR to acquire software for in-house use without permission of commercial exploitation is

IT/ILT: Where assessee remits certain sum to its Denish concern for acquiring a software license without any permission of commercial exploitation thereof, remittance attracts royalty under section 9(1)(vi)

Services of erection of transmission tower are exempt from service-tax

Service Tax : Services in relation to civil structure to facilitate erection of electricity transmission tower for State Electricity Board are services 'in relation to transmission and distribution of electricity' and are exempt from service tax

CLB declared petitioner as lawful shareholder as he was pursuing his claim for transfer of shares si

CL : Where petitioner had purchased shares for a valuable consideration and had been pursuing his claim for transfer of said shares in his name since long, he was declared as lawful owner of said shares

HC quashed disciplinary proceedings against CA on alleged misconduct due to inordinate delay of ICAI

Advertisement given by petitioner-chartered accountant for purpose of seeking association with other international chartered accountant firms did not warrant a severe punitive action as alleged misconduct was not grave and ICAI erred in undertaking disciplinary enquiry after a lapse of 18 years when alleged misconduct was done

Lumpsum amount paid for transfer of know-how wasn’t royalty if payment wasn’t made for any particula

IT/ILT : Assessee had entered into an agreement with UK based company for supply and installation of machinery, which involved transfer of technical know-how. It had paid lumpsum amount in connection with transfer of technical know-how. Such payment could not be treated as royalty as it was not made for any particular period.

RBI vigilant on routing of overseas funds; debars Cos from giving guarantee to affiliates for overse

FEMA/ILT : Routing of Funds Raised Abroad to India

No penalty for failure to file undertaking by appellant as it hadn't violated cease and desist order

Competition Act : Imposition of punitive measure by CCI on petitioner for its failure to file undertaking without taking into account that petitioner had not violated its substantive direction to cease and desist from anti-competitive conduct was unjustified

No deemed transfer on handing over of possession of land to developer if he didn't perform his part

IT : When developer has not performed or there is unwillingness to perform his part of contract, it cannot be concluded that there is transfer of capital asset in terms with section 2(47)(v) read with section 53A of Transfer of Property Act 1882, merely because assessee has entered into a development agreement or even handed over possession of land to developer during assessment year in question

Former SC Judge 'G.S Singhvi' appointed as chairperson of Competition Appellate Tribunal

COMPETITION ACT : Section 53C, read with Section 53F of The Competition Act, 2002 – Appellate Tribunal – Composition Of - Appointment of Chairperson of Competition Appellate Tribunal

SEZ units/developers can route their applications for ST refund via SEZ Officer

ST LAWS/SEZ : Section 96J of The Finance Act, 1994 - Special Exemption from Service Tax in Certain Cases – Procedure of Service tax Exemption to SEZ

Prior to 7-12-2008, no ST refund on services used for export if assessee availed drawback on export

Service Tax : Prior to 7-12-2008, if assessee had availed of drawback of service tax paid under Drawback Rules, they become ineligible for benefit under Notification No. 41/2007-ST by way of refund of service tax paid on services used for export

Employee undertaking responsibility of transporting Cylinders held as sub-contractor; sec. 194C invo

IT : Where payment had been made to an employee of assessee who had undertaken responsibility of transporting cylinders and truck owners gave bill to him and in turn he paid to truck owners, he would be treated as sub contractor and assessee was liable to deduct TDS under section 194C

New undertaking won't be treated as existing one due to common management or accounts; sec. 10A reli

IT: Newly established undertaking means an undertaking of an assessee independent of all other undertakings that he is already possessing and mere fact that there is common management or common accounts would not lead to conclusion that they are not separate undertakings

ITAT erred in allowing deduction of unpaid excise duty relying upon its earlier order which was reve

IT: Where Appellate Authorities had deleted addition an account of excise duty payable by simply relying on order passed by Tribunal in earlier assessment year, since said order was reversed by High Court and further facts were also not clearly brought out in assessment order, matter was to be readjudicated

Duty based on production capacity: Liability arose from beginning of FY even if production started i

Excise & Customs : Where assessee admits that he was manufacturing Pan Masala without registration since Jan., 2011, prima facie, factory is deemed to be in operation since 1st April of that financial year i.e., since 1-4-2010 and duty is leviable accordingly

MAT credit should be reduced from tax liability before computing interest under secs. 234B and 234C

IT : MAT credit should be given to assessee before charging of interest under sections 234B and 234C

CLB is empowered to stay its proceedings on pending adjudication of any dispute in a civil suit

CL: CLB is empowered to stay proceedings before it, pending adjudication of any civil suit

No disallowance of employee's contribution to PF/ESI if it was paid by employer before due date of f

IT: Where payment of PF and ESI could not be made on or before due date under relevant Acts but same was deposited on or before due date of filing of returns under section 139, said amount could not be disallowed

Delay in filing appeal due to illness of representative of assessee suffering from depression was co

CST & VAT : Haryana VAT : Where assessee filed appeal before Tribunal late by 159 days and sought condonation of delay contending that order passed by First Appellate Authority was received by its counsel and handed over to its representative who was suffering from depression and most of time was out of office, there was sufficient cause for delay in filing appeal

RBI amends FDI norms; allows FDI in ARCs and in private banking sector by FPIs

FEMA/ILT : FEM (Transfer or Issue of Security by a Person Resident Outside India) (Tenth Amendment) Regulations, 2014 – Amendment in Schedule 1

No revision by CIT to deny sec. 54F relief as AO had examined approved MAP of constructed house prop

IT : No revision by CIT to deny sec. 54F relief as AO had examined approved MAP of constructed house property

No TP addition if assessee didn't charge interest from AE/non-AE debtors on delay in realization of

IT/ILT: Where there was complete uniformity in act of assessee in not charging interest from both AE and non-AEs debtors for delay in realization of export proceeds, no addition of notional interest to assessee's ALP on aforesaid ground could be made in course of transfer pricing proceedings

Assessee can use CENVAT credit to pay ST under reverse charge in respect of GTA services

Cenvat Credit : Assessee can pay service tax under reverse charge on inputs services of Goods Transport Agency's Services using balance lying in Cenvat Credit

Govt. notifies search and seizure norms in respect of Pension Fund

CL : Others/Indian Acts & Rules : Pension Fund Regulatory and Development Authority (Procedure for Search and Seizure by Authorised Officer) Rules, 2014

SEBI establishes its local office at Shimla

SEBI : Establishment of Local Office of SEBI at Shimla

RBI asks banks to carry out due diligence before making payment of unclaimed deposits to customers

BANKING : Section 26A of Banking Regulation Act, 1949- Depositor Education and Awareness Fund Scheme, 2014 – Due Diligence of Customers

RBI updates banks on inclusion of name of 'Doha Bank Qsc' in second Schedule to the RBI Act

BANKING : Inclusion in the Second Schedule to the Reserve Bank of India Act, 1934 – Doha Bank QSC

SEBI revises norms for issuance of Offshore Derivative Instruments on lines of FPI norms

SEBI : Conditions for Issuance of Offshore Derivative Instruments under SEBI (Foreign Portfolio Investor) Regulations, 2014

Indian Textile Sector Has Potential To Cross $500 Bn By 2025, Says Report

The country’s textile industry, which is currently estimated at USD 108 billion, has potential to cross USD 500-billion mark by 2025 if the sector gets adequate support from the government, says a report.

“If the Indian textile industry takes the right steps and gets adequate policy support from the Government, it could cross USD 500 billion by 2025 from its present size of USD 108 billion.

This will also catalyse another 35 million jobs and USD 200 billion of investments,” according to a study report by leading textile and polyester consulting firms Wazir Advisors and PCI Xylenes & Polyesters. The USD 500 billion market figure consists of domestic sales of USD 315 billion and exports of USD 185 billion.

The current industry size comprises domestic market of USD 68 billion and exports of USD 40 billion, Wazir Advisors Joint Managing Director Prashant Agarwal told reporters here today.

“We have belief that India is a goldmine for growth of textiles and apparel value chain, whose potential is yet to be fully tapped,” he said.

Agarwal said the government needs to give more support to the industry with specific focus on manmade fibre based textile value chain.

Immediate GST implementation to remove differential tax treatment to manmade fibres, creation of mega textile parks, single window system for FDIs, labour law reforms, extension of loan period in case of TUFS (Technology Upgradation Fund Scheme) and R&D promotion are some of the policy measures needed to boost the industry, he said.

Implementation of these suggestions will help to attract investment, technology upgradation, innovation and healthy growth of the industry, Agarwal said.

With 5.2 per cent share of global trade, the Indian textile industry ranks second in the world, but far behind China. This is likely to change, with China’s share in global textile trade expected to go down by 5 per cent which will help India to push up its exports to USD 185 billion, the report said.

Indian textile industry needs to effect a major shift in its fibre mix, which is presently tilted towards cotton (55 per cent), while the fibre consumption of the world is tilted towards polyester fibre (50 per cent), it maintained.

Source:niticentral.com

'Dharmarth' receipts collected by a Logistic Co. and routed to a charitable trust couldn't be taxed

IT : Where assessee company having collected certain amount as 'dharmarth', routed it to a charitable trust, amount so collected could not be brought to tax as income of assessee

Welding electrodes used in repair or maintenance of plant and machinery are eligible for credit

Cenvat Credit : Repair and maintenance of plant and machinery, though by itself not a manufacturing activity, has to be treated as an activity in relation to manufacture and inputs/welding electrodes used therein are goods used in relation to manufacture and are eligible for credit

Lamborghini Sees High Import Duty Affecting Sales In India

Italian super-luxury sports car maker Lamborghini today said high import duty ranging up to 167% is a major deterrent for selling its cars in India. As a result, the company expects its sales to be lower than the last year's level in India this year.

"We sold 22 cars in India last year, a growth of 29% over the sales of 2012. We do not expect better sales this year due to very high amount of import duty in the country, which is as high as 167%," Stephan Winkelmann, President and CEO, Automobili Lamborghini S.p.A said.

He said the company would be comfortable if the import duty is capped at 2011 levels, when it was 60%. "We are too small player in India to ask the government to bring down the import duty. It is up to the industry to seek duty concessions collectively," he said.

Another reason for lower sales in India this year, according to him is due to late launch of new model Huracan. It expects to improve its sales in the country next year.

The Volkswagen-owned brand opened its third dealership in India at Bengaluru today. It already has dealerships in Mumbai and Delhi. The company has sold 94 units in the country till date. It has sold three cars from its Bengaluru outlet during the soft launch, he said.

Lamborghini is also considering the possibility of launching its sport utility vehicle in India by 2018, Winkelmann said.

“India is a huge market and holds immense potential for selling luxury sports cars. Lamborghini being the early entrant in the market we want to retain our edge over others. There is a high awareness about the brand here, but sales are low. We need to convert it into sales through various campaigns,” Winkelmann added.

Source:business-standard.com

No penalty on order of protective assessment until substantive assessment order is passed, rules Hig

IT : Assessment order being protective assessment order, penalty could not be initiated

Advances disclosed in returns and subsequently adjusted against sales couldn't be deemed as undisclo

IT : Addition under section 68 be deleted where it was found that said credits were duly disclosed in original return and no incriminating material regarding cash credit was found

In reassessment cases it is to be discussed whether reason to believe constituted a change of opinio

IT : Where section 10(29) exemption was allowed but in view of Supreme Court's decision reassessment notice was issue, matter to be readjudicated to find whether there was change of opinion

HC directed Tribunal to verify earlier order as Tribunal had passed two different orders in same app

Excise & Customs : Where Tribunal had passed two different final orders on different dates in same appeal, High Court remanded matter back to Tribunal for verifying status of earlier order and whether same had been withdrawn

No denial of sec. 10(23C) relief to educational body on existence of general objects in MOA apart fr

IT : Mere presence of objects in memorandum providing for other charitable activities would not disentitle a society to claim approval under section 10(23C)(vi)

Commissioner's order granting liberty to AO to proceed with penalty proceedings wasn't prejudicial t

CST & VAT : An action can be taken by superintendent of taxes under section 29 of Tripura Sales Tax Act only if it is permissible under law; giving liberty to AO to proceed with penalty proceedings would not be prejudicial to trader

Bye laws of NSE had statutory force and would prevail over Limitation Act, 1963

SEBI : NSE bye laws, rules and regulations have statutory force and would prevail over Limitation Act, 1963

Violation of RBI norms by NBFC in advancing loan to affiliates doesn't lead to denial of genuine bad

IT : Wherein regular course of its money lending business assessee - NBF had advanced loans to sister concerns/related parties, bad debts cannot be disallowed on ground of violation of RBI's guidelines

CII had to be taken from the date when asset was held by previous owner for computing cost of inheri

IT: In case of inheritance, cost of acquisition of asset should be calculated on basis of cost of acquisition by previous owner and it has to be indexed according to Explanation (3) to section 48

CBDT's instruction for min tax effect for filing of appeal by dept. is applicable to pending cases a

IT : Instruction No. 5/2014, dated 10-7-2014 revising monetary limit to Rs. 4 lakh for filing appeal before Tribunal would apply to pending appeals as well

Marketing or promotion of products of foreign principal in India would amount to export of service

Service Tax : Marketing/Promotion in India of products belonging to foreign principal amount to export of services and is not liable to service tax

Marketing or promotion of products of foreign principal in India would amount to expert of service

Service Tax : Marketing/Promotion in India of products belonging to foreign principal amount to export of services and is not liable to service tax

No petition before CLB alleging transfer of co's property if transfer was made prior to 3 months of

CL : Where alleged transfer of company's property took places 5 years back, CLB had no jurisdiction to entertain section 397/398 petition as it was time barred being beyond 3 months prior to filing of petition

ITAT computes ALP of interest on advance made to affiliates on basis of interest rate on deposit mad

IT/ILT : Where payment was made to non-resident abroad for services rendered abroad, no TDS liability would arise

Solitary transaction of sale and purchase of land couldn't be termed as 'adventure in nature of trad

IT : Solitary transaction of sale and purchase of land couldn't be termed as 'adventure in nature of trade'

Development Commissioners not to insist on fresh application from SEZ units for services already app

SEZ : Uniform List of Services to be followed in Special Economic Zones

India's Oct. Polished Exports -15%

India’s polished diamond exports fell 15 percent year on year to $2.219 billion in October, data published by the Gem and Jewellery Export Promotion Council (GJEPC) showed. By volume, exports dropped 16 percent to 3.786 million carats, while the average price of the exports rose 2 percent to $686.78 per carat.

Polished imports to the country increased 3 percent to $600 million during the month. As a result, net polished exports, representing the excess of exports over imports, declined 20 percent to $1.619 billion.

India’s rough imports fell 17 percent to $1.006 billion in October and rough exports slumped 37 percent to $107 million. Net rough imports, or rough imports minus exports, declined 14 percent to $899 million. India’s October net diamond account, representing the excess of total exports of polished and rough over total imports, fell 26 percent to $720 million.

During the first 10 months of the year, India’s polished exports rose 2 percent to $19.199 billion, while polished imports grew 2 percent to $6.210 billion. Net polished exports increased 3 percent to $12.989 billion.

India’s rough imports rose 7 percent to $14.557 billion during the 10-month period, and rough exports fell 19 percent to $1.295 billion. Net rough imports increased 11 percent to $13.263 billion.

India’s net diamond account fell to a deficit of $274 million during the 10-month period, compared to a surplus of $704 million in the same period a year earlier.

Source:diamonds.net

Essar Steel Raises $1 Billion Via Export Securitization

Essar Steel India Ltd has raised $1 billion through long-term export securitization to prepay existing rupee debt, the company said on Monday.The company had earlier raised $1 billion through external commercial borrowing (ECB) route.

“With this financing, the company has dollarized $2 billion of its debt which has led to significant benefits,” company said in a statement. “These include reduction in the average interest cost from rupee linked rate to dollar linked rate which has resulted in a large interest saving of approximately Rs.720 crore annually, and elongation of the average maturity of its debt from 3.5-6.75 years.”

Essar Steel is the fourth largest Indian steel maker with a capacity of 10 million tonnes at its integrated steel making facility in Hazira in Gujarat.

Source:livemint.com

Rule 8D can't be invoked in absence of any nexus between borrowed funds and tax free investments

IT : In order to bring any interest expenditure claimed by assessee under ambit of Rule 8D(2)(ii), it will have to be demonstrated by Assessing Officer that said interest is not directly attributable to any particular income or receipt

Clarification of DGFT have precedence over clarification issued by CBEC in matters of foreign trade

Excise & Customs : Opinion/clarification of DGFT is binding on customs so far as classification of any item in ITC (HS) or schedule of DEPB Rates, etc. is concerned under Foreign Trade Policy; DGFT clarification would have precedence over clarifications by CBEC

Vw India Begins Exports Of Polo To Mexico

Volkswagen India has expanded its export operations. With the market introduction of the new Polo in Mexico since the beginning of November this year, the carmaker has begun shipping its new Polo hatchback, which is manufactured at the Volkswagen Pune Plant, to Mexico. The Polo becomes the second model, after the Vento, which is exported to Mexico from India. The export versions of the Vento and the new Polo together account for nearly every second car produced at the Pune Plant.

According to Mahesh Kodumudi, president and managing director, Volkswagen Pune Plant and chief representative, Volkswagen Group India, “With the successful entry in Mexico last year with our Vento, we set an example of world-class quality being manufactured in India. With further expansion into the Polo segment, we have reiterated the fact that we are able to manufacture top products through our Indian operations.” He added, “We build the same quality of cars in Pune as around the world with equally robust construction. The Polo built in India has achieved a 4-star Global NCAP rating which is a strength when it comes to exporting to global markets.”

Volkswagen India began exporting cars from its Pune Plant in 2011 with the first export market being South Africa. Since then, the export operations of Volkswagen India have expanded to over 32 countries across three continents of Asia, Africa and North America. The range of cars being exported includes left-hand drive as well as right-hand drive cars. Additionally, Volkswagen India also exports parts and components of its cars to Malaysia which are assembled there for the Malaysian domestic market. The Volkswagen Pune Plant has produced over 89,000 cars for export till date.

Source:autocarpro.in

Spurt In Gold Imports Widens C/A Deficit

While record low oil prices have provided relief to the Indian government — which is struggling to reduce the current account deficit — soaring gold imports, have resulted in a sudden spurt in the trade deficit in October.

According to commerce ministry figures, released last week, the trade deficit went up to $13.3bn in October, up from $10.6bn a year ago. The deficit for the seven-month period (April-October) is slightly lower at $83.75bn as against $87.31bn in the corresponding period in the previous fiscal.

Ominously, gold imports shot up by a phenomenal 280pc in October to $4.17bn, from $1.09bn in October 2013. The deficit widened substantially despite a 19pc fall in oil imports to $12bn. Crude and gold are the two biggest import items in India.

India’s exports also fell by 5pc to $26bn — even as imports grew by 3.6pc to $39bn — with sectors such as engineering goods, pharmaceuticals and cotton yarn performing badly. Non-oil, non-gold imports also went up by 6pc to $22.9bn.

India’s current account deficit (CAD) fell to $32.4bn (1.7pc of GDP) in fiscal 2013-14, from a record high of $87.8bn (4.7pc of the GDP) in the previous fiscal, thanks to a contraction in trade deficit and an increase in net invisible receipts.

In the first quarter of the current fiscal, the CAD fell to $7.8bn (1.7pc of GDP) from $21.8bn (4.8pc) a year ago. In the second quarter though, it was up at $14.2bn. Analysts, however, expect the CAD to be lower at the end of the current fiscal.

An economist for Nomura India expects that the CAD would be contained at around 1.4pc of the GDP by the end of March 2015.

Citigroup, however, believes the CAD would be slightly higher than last year’s figure. “We maintain our view of FY15 CAD at $36.7bn (1.8pc of GDP), with risks balanced,” says a research note by Citigroup.

While admitting that exports could be weaker because of weak demand in Europe and China, the leading financial services group noted that India’s healthy foreign exchange reserves position (at over $315bn), combined with the promised reforms across several sectors would stabilise the Indian economy.

With the CAD unlikely to rise substantially from the level of $32.4bn seen at the end of the previous fiscal, the Indian currency is also expected to remain stable at levels of Rs62-63.

The CAD had shot up to $87.8bn at the end of fiscal 2012-13 following a spike in oil prices and soaring demand for gold. The government then imposed restrictions on gold imports by hiking the import duty from 2pc to 10pc. This had the desired effect as imports of the yellow metal slowed down, easing the trade deficit.

---

THE recent spurt in gold imports is, however, causing worries to the government which could tighten the curbs on imports of the yellow metal. India’s gold imports rose to 143 tonnes in September and topped 150 tonnes a month later on the eve of the festive season. Traditionally, gold consumption soars in India in September and October on the eve of Diwali and other festivals.

According to the World Gold Council (WGC), India regained its position as the world’s largest consumer of gold in the third quarter of 2014, overtaking China once again. During the July-September quarter, India bought 225.1 tonnes of gold in jewellery, coins and bars, as against 182.7 tonnes bought by China. India’s total gold consumption adds up to more than 900 tonnes a year.

Demand for gold jewellery shot up by 60pc in the quarter to 189.2 tonnes. With gold prices having fallen significantly in recent months, consumers went on a buying spree, hoarding up jewellery.

Government officials have been in talks with the Reserve Bank of India (RBI) about additional measures to be taken to curb gold imports. But officials acknowledge that increasing duty on gold imports could result in a spurt in smuggling.

Ever since the government imposed a 10pc duty on gold, there has been a significant rise in gold smuggling. Organised gangs deploy carriers who travel abroad and return home — mainly to the non-metro international airports — loaded with the yellow metal, which is concealed in their bodies or in their personal baggage.

The WGC estimates that about 200 tonnes of gold was smuggled into the country last year. But the authorities have also cracked down on the trade. The Directorate of Revenue Intelligence (DRI) has reported a 330pc increase in seizures; it made 2,150 seizures of gold worth Rs6bn in the first six months of the fiscal.

Earlier this year, the government eased curbs on ‘star trading houses’ — who export jewellery — to import gold directly. A ban had been imposed on these imports in July 2013 when gold imports had risen sharply.

The All India Gems and Jewellery Federation is opposed to the government introducing new curbs on imports. Last week, it urged the government and the RBI not to impose new curbs, which could ‘spell doom for the gems and jewellery sector.’

According to Haresh Soni, the federation chairman, the sharp increase in gold imports in Sep­tember and October was because of the low base effect. In September and October 2013, gold imports were low, but this year they have returned to the normal, pre-festive season levels, giving the impression that there has been a substantial increase in imports, he argues.

The federation has also asked its members to stop selling gold coins and bars, once their sale exceeds 300 tonnes as part of a self-regulatory initiative. It also wants the government to reduce import duty on the yellow metal to 2pc to reduce smuggling.

Source:dawn.com

Rupee Gains 8 Paise Against Dollar In Early Trade

The rupee strengthened by eight paise to 61.68 against the dollar in early trade today at the Interbank Foreign Exchange on increased selling of the US currency by exporters and banks amidst sustained foreign capital inflows.

Forex dealers said apart from increased selling of the American currency by exporters and banks, the dollar's weakness against

some currencies overseas, supported the rupee. A higher opening in the domestic equity market, which soared to new highs, too supported the rupee, they added.

The rupee had strengthened by 18 paise to end at 61.76 against the Greenback on Friday on suspected selling of the US dollar by state-run banks on behalf of the RBI and a strong rally in local stocks.

Meanwhile, the benchmark BSE Sensex spurted by 180.35 points, or 0.63 per cent, to hit another record-high of 28,514.98 points in opening trade today.

Source: economictimes.indiatimes.com

SC: 'BIFR' is sole authority to decide whether a sick company can be moved out of its jurisdiction

CL : After a reference is registered by BIFR, all throughout subsequent stages, BIFR has complete supervisory control over affairs of a sick industrial company till it is revived or decision to wind up such company is taken

HC upheld concealment penalty on assessee as it had filed nil return without paying the MAT liabilit

IT : Where assessee filed nil return and failed to compute book profit and pay MAT, which it was liable to pay, levy of penalty was justified

ITAT lays down criteria for selection of accounting method in construction projects

IT : In order to compute income from construction projects, method of accounting has to be selected keeping in view transfer of significant risks and rewards of ownership coupled with absence of uncertainty associated with realization of revenue, so that sale can be said to have taken place

ITAT had rightly set-aside time-barred assessment under sec. 144 after considering facts of the case

IT: Where Tribunal on appreciation of facts came to conclusion that order passed under section 144 read with section 251 was time-barred and cancelled same; conclusions reached by Tribunal could not be interfered with

Postal endorsement that there was nobody in factory neither amounted to refusal nor as closure of fa

Excise & Customs : Endorsement by postal authority that 'there is nobody in factory' cannot tantamount to refusal of assessee nor that can be read as factory is closed; hence, authority/Tribunal must take fresh steps to ensure service as per law

Units manufacturing diverse products with separate machinery were independent units; sec. 80-IB avai

IT : Where assessee company's both units manufacturing different products, having different machinery, assessee would be entitled for deduction under section 80-IB

No rejection of books due to non-issuance of cash memo on every sales as assessee was issuing one me

IT : Books of account of assessee could not be rejected on sole ground that only one consolidated cash memo was issued at end of day as it is not necessary that a cash memo is required to be issued for each and every sale

Discount given to customer via credit note could be claimed as deduction even if it wasn't shown in

CST & VAT: Where assessee issued credit note to customer subsequent to issue of sale bill and claimed deduction of same as discount given to customer, it was permissible for assessee to show discount given by a separate credit note subsequently and claim deduction even though discount was not shown in sale bill

HC quashed proceedings for violation of CIS norms by director as she had ceased to be a director on

SEBI: Proceedings for violation of CIS Regulations by director of agro-company were to be quashed if she had ceased to be director on date of offence

No unexplained investment if construction cost was determined as per State PWD rates and not Central

IT: Where assessee computed cost of construction of building on basis of rate fixed by State PWD, in absence of any circular or notification indicating that Central PWD rate alone was to be adopted in arriving at cost of construction, Assessing Officer was not justified in making addition under section 69 to assessee's income by adopting rates fixed by central PWD in respect of building in question

State Govt. Co. providing long-term finance for industrial projects would be eligible to benefits of

IT: A State Government company providing long-term finance for industrial projects would fall within meaning of 'State Industrial Investment Corporation' under section 43D

HC denies to condone delay due to death of counsel as assessee delayed to appeal by 4 years after de

IT : Death of counsel before matter was heard could not be a sufficient reason for delay of another 4 years in challenging an ex parte order of Tribunal

No concealment penalty if AO had disallowed claim of assessee after taking a different view of evide

IT: Where Assessing Officer rejected assessee's claim for deduction of commission paid to selling agents taking a different view of evidence on record, he was not justified in passing penalty order under section 271(1)(c) for raising a false claim of deduction

'Ford India doesn't have a dominant position in SUVs Market, says CCI

Competition Act: 'Ford India doesn't have a dominant position in SUVs Market

Hiring and renting of cab aren't distinguishable; ST is leviable irrespective of who enjoys control

Service Tax : Renting of cabs is liable to service tax irrespective of whether control over vehicle is of service provider or of service recipient and irrespective of whether it is 'hiring' of cabs or 'renting' of cabs; therefore, supplying vehicles for transportation of papers/answer sheets, examiners, staff etc. on distance travelled basis also amounts to rent-a-cab services

Aluminium and similar non-ferrous metal 'dross and skimmings' are manufactured goods; excisable wef

Central Excise : Aluminium dross and skimmings and similar non-ferrous metal dross and skimmings which arise as a by-product in process of manufacture of aluminium/non-ferrous metal products are manufactured goods and hence excisable with effect from 10-5-2008 in view of explanation added to section 2(d)

No sec. 11 relief to a trust involved in newspaper publishing without verifying materials on record

IT: No sec. 11 relief to a trust involved in newspaper publishing without verifying materials on record by ITAT

CBDT reconstitutes DRP at various places consequent to change of designation of DRP members

IT/ILT : Section 144C of The Income-tax Act, 1961 - Dispute Resolution Panel (DRP) - Reference to - Constitution of DRPS at Delhi, Mumbai, Pune, Kolkata, Ahmedabad, Hyderabad, Bangalore and Chennai

ESI Corporation wasn't liable to service tax; CESTAT sets aside demand of Rs. 1945 crores

Service Tax : No service tax can be collected in respect of services provided by the Employees' State Insurance Corporation set up under the Employees State Insurance Act, 1948

No additions by AO on other grounds without making addition in respect of reasons given for escaped

IT : Where no additions were made in respect of reasons given for reopening of assessment, it was not open to Assessing Officer to independently assess some other income

Govt. exempts excise duty on Anti-Malarial drugs and other goods required for Intensified Malaria Co

EXCISE & CUSTOMS LAWS : Section 5A of The Central Excise Act, 1944 – Power to Grant Exemption from Duty of Excise – Exemption to Goods Required for The Intensified Malaria Control Project (IMCP)-II Under The National Vector Borne Disease Control Programme (NVBDCP), Funded by Global Fund to Fight AIDS, TB and Malaria (GFATM)

Penality had to be reduced to 25% if full duty was paid alongwith penalty/redemption fine before iss

Excise & Customs : Where assessee had made deposit for provisional release of seized goods and said amount exceeds full amount of duty along with penalty and redemption fine, penalty under section 11AC must be reduced to 25 per cent of duty

IRDA mandates submission of life insurance data to Insurance Information Bureau

INSURANCE : Submission of Life Insurance Data to IIB

Commission paid to directors for managing Co's affairs partakes character of salary; not liable to s

IT : Commission paid to directors for managing affairs of company partakes of character of salary and, therefore, provisions of section 194H are not applicable in respect of for such payment

CLB directs transfer of shares to petitioner as person to whom transfer was pending didn't object to

CL : Where shares were pending for transfer in name of a person due to some non-compliances on part and in meantime no objection was given by such person in favour of petitioner to get shares transferred in petitioner's name, impugned shares were to be transferred in name of petitioner

RBI allows ECB borrowers to park ECB proceeds in fixed deposits for 6 months pending their utilizati

FEMA/ILT : External Commercial Borrowings (ECB) Policy – Parking of ECB Proceeds

Authorized dealers and money changers can release basic travel quota of Forex to Haj Pilgrims in cas

Release of Foreign Exchange for Haj/Umrah Pilgrimage

Assessee would get exemption from CST even on non-submission of 'C' form if exemption was granted by

CST & VAT: Where assessee was granted exemption from payment of tax under Madhya Pradesh General Sales Tax Act and Central Sales Tax Act and Assessing Authority denied exemption under Central Act on plea that in respect of inter-State sales assessee did not submit 'C' form, assessee was eligible to get exemption, even though it did not submit 'C' form

Decorating plain glazed ceramic tiles via printing/embossing was manufacture for sec. 80-IA relief

IT: Where assessee was engaged in job work of decoration of plain glazed ceramic tiles through process of printing and embossing designs, said process being in nature of 'manufacturing activity', assessee's claim for deduction under section 80-IA was to be allowed

DRP can't set aside proposed variation in draft assessment order and issue direction for further enq

IT : In terms of provisions of section 144C(8), DRP does not have power to set aside any proposed variation in draft assessment order and issue direction for further enquiry

Sum received by international news agency on distribution of news and related photos in India is roy

IT/ILT : Sum received by international news agency on distribution of news and related photos in India is royalty

Mere receipt of summons in Calcutta from authorities of Kerala won't give arise to cause of action i

Service Tax : Where assessee having centralized service tax registration at Kolkata received summons from Central Excise Intelligence, Kerala, no integral part of cause of action arose in Kolkata; therefore, Calcutta High Court did not have jurisdiction to hear writ thereagainst

HC ordered winding-up of respondent-Co. as it failed to pay agreed sum to petitioner and other credi

CL : Where respondent failed to pay admitted and agreed sum to petitioner and several other creditors, respondent was unable to pay its debts and was to be wound up

Levy of service tax on restaurants and hotel accommodation is unconstitutional, says Kerala High Cou

Service Tax : Levy of service tax on : (1) service forming part of supply of goods in a restaurant, as well as, (2) short-term accommodation services in hotels, inns, etc. is unconstitutional being violative of Entries 54 and 62, respectively, of State List

Penalty had to be waived off if assessee had paid ST even when there was confusion regarding manner

Service-tax : When there was confusion as to manner of payment of tax and assessee had acted honestly by paying service tax, without further delay, on being pointed out, penalties were liable to be waived

No additions on basis of confessional statement made during search if it wasn't supported with evide

IT : Assessing Officer cannot presume income under section 153A merely on basis of confessional statement; he is required to bring on record positive material in support of addition

No additions on basis of confessional statement made during search if it was supported with evidence

IT : Assessing Officer cannot presume income under section 153A merely on basis of confessional statement; he is required to bring on record positive material in support of addition

HC can’t review orders of SetCom; powers are confined to reviewing its decision making process rathe

IT: High Court cannot assume the role of an appellate authority to review orders passed by the SetCom -Its role is confined to judicial review of the decision making process adopted by the SetCom and not the decision itself

Tribunal can't extend stay indefinitely so as to operate during pendency of appeals

Excise & Customs : Tribunal can extend stay beyond 365 days but, in view of specific provisions of section 35C(2A) and especially third proviso thereto inserted by Finance Act, 2013, Tribunal cannot extend stay indefinitely to operate during pendency of appeals

Sum paid in excess of net assets to acquire business division on slum sale basis was to be treated a

IT : Where assessee required annual maintenance contract (AMC) of 'elevator division' business of ECE, said rights being in nature of 'business or commercial rights of similar nature'

AO had rightly made reference to DVO as assessee had utilized unaccounted income in construction of

IT : Where cost of construction shown in books of account was not proper, reference by Assessing Officer to DVO was justified

HC directed assessing authority to suspend recovery proceeding as assessee had agreed to pay sales t

CST & VAT : Tamil Nadu VAT : Where assessee was in arrears of sales tax and thereupon Assessing Authority addressed a letter to principal of assessee informing in this regard, since assessee agreed to pay dues, Assessing Authority was directed to keep impugned proceedings in abeyance

No abuse of dominance by electricity-co. when it didn't allow others to supply electricity in its ar

Competition Act: Where OP-Local authority opposed Informant's request for supply of electricity no case of contravention of provisions of section 4 was made out as exemption is granted to a local authority in terms of provisions of section 42(3) of Electricity Act, 2003 from provision of its network to other distribution licensee for wheeling electricity by way of open access

No agency PE under India-France DTAA even if agent is wholly dependent on foreign Co. unless transac

IT/ILT : As per Article 5(6) of India-France DTAA, even if agent is wholly or almost wholly dependent on the foreign enterprise he still will not constitute dependent agent PE unless additional condition of the transactions being not at arm’s length price is fulfilled. The initial onus is upon the Revenue to show that the transactions are not at arm’s length price, thus, AO was directed to examine whether the transactions between the agent and assessee (i.e., foreign company) were at arm’s lengt

Sec. 14A disallowance can be made even when assets yielding tax-free income form part of trading ass

IT : Provisions of section 14A, read with rule 8D of 1962 Rules, apply even in a case where assets yielding tax-exempt income form part of trading assets of assessee

Concealment penalty on assessee upheld on his failure to explain source of flats acquired and shown

IT: Where assessee claimed that flats shown in return of income was acquired by surrendering his tenancy rights but failed to prove such rights, penalty levied under section 271(1)(c) was justified

ITAT directs AO to allow sec. 54F relief after considering recent ruling of Apex Court in case of Sa

IT: Where assessee cited order of Supreme Court in support of claiming deduction but same being recent was not available to Assessing Officer, nor before Commissioner (Appeals), matter was to be restored to decide in light of said order

No revision by CIT due to retro-amendments if AO had already made assessment

IT : Though amendment in section 115JB by Finance (No. 2) Act, 2009 by way of insertion of Explanation (i) is retrospectively brought with effect from 1-4-2001, revenue could not have benefit of same where assessment was already made

Delay filing appeal due to accident of staff of representative wasn't condonable without medical cer

Service-tax : Delay caused due to accident of staff of Chartered Accountant cannot be condoned when assessee could not name said staff and no medical certificate evidencing injury was filed

Petitioner couldn't file civil suit to recover interest if CLB admitted winding up plea on default o

CL: Where winding up petition for non-payment of principal sum had been allowed, petitioner was not to be relegated to remedy of civil suit for its claim of interest on that sum

ITAT deletes TP addition by following earlier case to hold that transaction was at ALP as facts rema

IT/ILT : Following order passed by Tribunal in assessee's own case relating to earlier assessment year, impugned addition made by TPO to assessee's ALP in respect of exports of spares and components to AE by applying internal TNMM, was to be set aside

RBI reduces realization and repatriation period for export proceeds to 9 months for units in SEZ, EO

FEMA/ILT : Export of Goods / Software / Services - Period of Realisation and Repatriation of Export Proceeds for Exporters Including Units in SEZS, Status Holder Exporters, EOUS, Units in EHTPS, STPS and BTPS

Banks to alert customers via SMS/email before levying penal charges for not maintaining min balance

BANKING : Levy of Penal Charges on Non-maintenance of Minimum Balances in Savings Bank Accounts

Sum received for hiring out dredgers wasn’t taxable as royalty under Article 12 of India-Netherland

IT/ILT : Sum received by Dutch Company for hiring out dredgers to its Indian AE would not be taxable in India as 'Royalty' as Article 12 of India-Netherland DTAA does not include such payments within its ambit.

No writ against CLB's order unless Compat was dysfunctional at the time of filing writ petition

Competition Act : CCI imposed penalty upon petitioner and directed it to file undertaking in terms of directions contained in order, writ petition filed by petitioner challenging that order would not be maintainable as CompAT was functioning and appeal if preferred by petitioner to CompAT would have been taken up for hearing along with application for interim relief which would have been filed therewith and petition could not be compared with other petitions in batch wherein interim relief was g

Sums collected by director from customers in ordinary course of business couldn’t be held as deemed

IT : Where assessee, a shareholder and director of a company collected certain amount from customers of company in ordinary course of business and kept it in his savings account which was finally remitted to company within a gap of short period, same could not be added to assessee's taxable income as deemed dividend

Credit of input services can't be denied merely because value thereof don't form part of final produ

Cenvat Credit : Revenue's submission that 'CENVAT credit cannot be allowed for service if value thereof does not form part of value subjected to excise duty' runs counter to fundamental concept of Service Tax; hence, transportation of final product upto customer's premises was eligible for Cenvat credit as input service

Income from letting out of office alongwith furniture is income from other sources if both are insep

IT : Income received by assessee by letting out fully furnished office premises and furniture was required to be assessed under head income from other sources

Sec. 14A disallowance couldn’t be made if assessee hadn’t earned or received any exempt income durin

IT : Disallowance cannot made under section 14A where assessee had not earned/received any exempt income during relevant year

In lending business one can’t assume that cash shortage found in search to be set-off with unexplain

IT: When undisclosed income that was invested remained unexplained by assessee, shortage of cash in unaccounted money lending business could not be set off against unexplained investment on basis of mere presumption

Sec. 80P: Society wasn't a co-operative bank if it didn't receive deposits and admits other society

IT : Where assessee, a co-operative society registered under the Karnataka State Co-operative Societies Act, did not receive deposits from public and, moreover, by-laws of society permitted admission of any other co-operative society as its members, assessee could not be regarded as primary-co-operative bank and, there being no application of section 80P(4), its claim for deduction under section 80P(2)(a)(i) was to be allowed

Mere claiming forex fluctuation loss under wrong provision won't lead to levy of concealment penalty

IT : Merely because assessee had claimed deduction of foreign exchange fluctuation loss on account of acquisition of fixed assets wrongly under section 37 instead of dealing same under section 43A, no penalty would be levied under section 271(1)(c)

CLB directs Kanthi Narahari to re-commence hearing on judicial matters of Andhra Pradesh and Telenga

COMPANIES ACT, 1956 : Section 10E of The Companies Act, 1956, read with Regulation 4 of The Company Law Board Regulations, 1991 - Constitution of Board of Company Law Administration - Revision in Work Distribution of Chennai Bench – Cessation of Office Order Dated 4-9-2014 w.e.f. 1-12-2014 Allocating Additional Charge of Chennai Bench Pertaining to States of Andhra Pradesh and Telengana to Member (Judicial) in Addition to his Existing Work

SEBI plans to widen definition of insider in insider norms and to reduce timeline to complete delist

SEBI : SEBI Board Meeting – Proposed Replacement of SEBI (Prohibition of Insider Trading) Regulations, 1992 Inter Alia for Strengthening Legal and Enforcement Framework; Conversion of Listing Agreements into Regulations; Proposed Amendment in SEBI (Delisting of Equity Shares) Regulations, 2009 & SEBI (Mutual Funds) Regulations, 1996 etc.

Mere claiming forex fluctuation under wrong provision won't lead to levy of concealment penalty on a

IT : Merely because assessee had claimed deduction of foreign exchange fluctuation loss on account of acquisition of fixed assets wrongly under section 37 instead of dealing same under section 43A, no penalty would be levied under section 271(1)(c)

No evasion penalty on issue relating to classification if assessee was boda-fide disputing it before

Excise & Customs : In matters involving classification, where assessee was bona fide disputing classification before Supreme Court, no 'evasion penalty' can be levied under rule 25 of Central Excise Rules, 2002

HC dismissed winding-up plea against guarantor-Co. as adjudication of debt against borrower was stil

CL : Winding up petition against guarantor of loan would not be maintainable when adjudication of debt against borrower was pending

No sec. 41(1) addition if liability towards old creditors was discharged in subsequent years

IT: Where liability towards old creditors shown in books of account was discharged in subsequent years, section 41(1) could not be applied to make addition of said amount

Sums paid for managing routine affairs of new branch attracts sec. 194J TDS as they were professiona

IT : Manage day-to-day affairs of new branch of assessee-company would be professional or managerial in nature, and payment made for same would be allowable expenditure subject to compliance of section 194J

HC condoned delay in filing of appeal as appellant-stock broker had sufficiently explained cause of

SEBI : Where appellant-stock broker company had sufficiently explained delay in filing appeal, delay was to be condoned

HC condoned delay in filing of appeal as appellant-stock broker had sufficiently explained cause of

SEBI : Where appellant-stock broker company had sufficiently explained delay in filing appeal, delay was to be condoned

In settlement of cases, 'co-operation' means full and true disclosure of facts pertaining to assesse

Excise & Customs : 'Co-operation' not only means participation; in context of settlement, it means true and full disclosure of facts pertaining to assessee; hence, where Settlement Commission found 10 aspects where information was withheld by assessee, order sending back case to Central Excise Officer was valid

In case of inherited property CII had to be taken of the year in which asset was acquired by previou

IT: When an asset is acquired by way of inheritance, cost of acquisition of asset should be calculated on basis of cost of acquisition by previous owner and said cost of acquisition has to be calculated on basis of indexed cost of acquisition as provided in Explanation (3) to section 48

ITAT rejects plea of improper/delayed service of notice as it was sent in time via speed post on pro

IT : If notice under section 143(2) has been sent through post and delivered on time on correct address, it is a proper service in time

Assessee could demand execution of comparable due to differences in FAR analysis even after selectin

IT/ILT : Where TPO made addition to assessee's ALP in respect of export made to AE by applying internal CUP method, in view of fact that Tribunal in earlier year had made certain adjustment to price charged to third parties so as to make it comparable with price charged from AE, following said order of Tribunal, matter was to be remanded back for disposal afresh

Assessing authority directed to supply copy of seized docs to assessee for enabling him to file repl

CST & VAT : Where Assessing Authority conducted survey upon assessee and seized various records and thereafter he issued show cause notice to assessee, Assessing Authority was directed to supply copies of documents being relied upon by him to assessee so as to enable it to submit effective reply

Time-limit of six months prescribed for taking credit for first time; not applicable for taking re-c

CENVAT CREDIT/EXCISE & CUSTOMS LAWS : Rule 4 of The Cenvat Credit Rules, 2004 - Conditions for Allowing Cenvat Credit – Clarification on Availment of Cenvat Credit after Six Months

Freight forwarding transaction was at ALP as assessee had chosen standard model of 50:50 to share pr

IT/ILT: Where assessee, along with its associated enterprise, offers multi modal transportation services to business to business shippers through global freight forwarding services in relation to both import and export, 50:50 business model of sharing profits in equal ratio with service provider at other end of transaction, is a standard practice

No reassessment to tax subsidy as revenue receipt if it was held as capital receipt in prior revisi

IT : Where subsidy received under West Bengal Industrial Promotion Scheme, 1994 was treated as Capital receipt in revisional proceedings taken under sec. 263 in earlier year, Assessing Officer could not reopen assessment during relevant year taking a view that amount in question was revenue receipt

Assessment in name of deceased person is void-ab-inito, says ITAT

IT: Assessment made in name of deceased person is non est and void ab initio

Any transaction involving acquisition of immovable property under FEMA norms shall be subject to Ind

FEMA/ILT : FEM (Acquisition and Transfer of Immovable Property In India) (Amendment) Regulations, 2014 – Insertion of Regulation 9

SC transfer various appeals pending before CESTAT benches to full bench to ensure uniform order

Service Tax : Supreme Court directed that various cases pending at Bangalore, Hyderabad and other places, be heard together by a Full Bench, presided over by President CESTAT so that in ultimate eventuate, uniform order is passed

No deemed seizure of agricultural land as it wasn’t a valuable article of which physical possession

IT : Unless valuable article or thing found as a result of search is of a nature that it is not possible or practicable to take physical possession of same, seizure of petitioner's immovable properties would not be necessary

No sec. 153A addition in respect of completed assessment when no incremental material was found duri

IT: No addition can be made in respect of assessments concluded on date of search unless some incriminating material is found during course of search

No penalty if there was no intent to evade tax and assessee had failed to mention invoice no. in dec

CST & VAT : Where Assessing Authority imposed penalty upon assessee under section 54(1)(14) of U.P. VAT Act on plea that column No. 6 of Form 38 had been left blank, since there was no intention to evade payment of tax, levy of penalty was not justified

No reference to Valuation Officer to ascertain undisclosed investment unless AO had rejected books o

IT : Where Assessing Officer made a reference to Valuation Officer without rejecting books of account of assessee, addition under section 69B was to be deleted

Appeal was not maintainable as it was signed and verified by the ex-Managing director of a company

IT : Where 'S' was neither Managing Director nor director of assessee company when appeal was filed before Tribunal, therefore, he was not an authorised person to sign and verify appeal filed on behalf of assessee company

ROC restores Co.'s name on an undertaking that it will comply with all statutory requirements therea

CL: Where petitioner-company had undertaken that statutory compliances shall be made and requisite statutory records and accounts will be filed with ROC once name of company is restored, name of petitioner-company was to be restored subject to payment of costs

ITAT directs AO to examine revised TDS return for deciding issue of sec. 40(a)(ia) disallowance

IT : Where revised TDS return was filed by assessee during appellate proceedings, matter was restored to Assessing Officer to examine same

Matter remanded by Tribunal without any observation on merits couldn't be challenged before HC

Excise & Customs : Where Tribunal has : (a) neither opined on quality of material, (b) nor held that it should necessarily be admitted and examined etc., but, has merely thought it proper that it should be examined by adjudicating authority rather than by Tribunal, said remand order could not challenged in appeal before High Court

Penalty upheld as source of deposits wasn’t explained and income wasn’t disclosed in pursuance of se

IT : Where assessee did not explain cash deposits and did not disclose income in response to notice issued under section 153C and did not give details as to how he would fall within explanation 1 to section 271(1)(c), penalty would be levied

Prior to 1-4-2005, no denial of sec. 80-IB relief even if space for commercial establishment exceede

IT : Where approval to housing project was given prior to 1-4-2005, deduction of section 80-IB could not be denied on ground that commercial establishments exceeded 2000 sq. feet

ITAT set-aside TP addition as some of the comparables chosen by TPO were functionally different

IT/ILT : Where TPO made addition to assessee's ALP in respect of rendering research and development support services to its AE, in view of fact that some of comparables selected were inappropriate on account of functional difference, regarding, impugned addition was to be set aside and matter was to be remanded back for disposal afresh

Interest on refund to be calculated from date of filing of first application and not from date of re

Excise & Customs : Where assessee had applied for refund on 4/11-2-2003, but, had re-submitted same in June 2004 after having won on merits before Commissioner (Appeals), interest on refund would be granted with reference to 4/11-2-2003

MMTC couldn't be said to be in dominant position as other players in market were also trading in gol

Competition Act: Where not only OPs, i.e., government nominated agencies for import and allocation of gold, but also other dealers, Jewellery, manufacturers and retailers were engaged in trading of gold, it could not be said that OPs were in a dominant position

Casual vacancy in appellate committees can be filled up by assigning review powers to other Commissi

EXCISE & CUSTOMS LAWS : Section 35B of the Central Excise Act, 1944 – Appeals to the Appellate Tribunal – Constitution of Review Committee of Commissioners of Central Excise – Assignment Of Charge of a Commissionerate where Committee is left with only one member

Uranium May Head To India In 2015

The uranium industry is hoping to make trial shipments to India next year.Prime Minister Tony Abbott and Indian leader Narendra Modi have discussed the supply of Australian uranium for India's nuclear power plants.It follows their signing of a safeguards agreement in New Delhi in September, overturning a long-standing ban on uranium exports to the subcontinent.

In his address to federal parliament on Tuesday, Prime Minister Modi said he saw Australia as a major partner in his country's quest to boost electricity production and address climate change.Advertisement "(We seek) energy that does not cause our glaciers to melt," he said. "Clean coal and gas, renewable energy and fuel for nuclear power."

The pair discussed energy security and what Mr Abbott called Australia's "readiness and willingness" to supply uranium to India for peaceful purposes.

"If all goes to plan, Australia will export uranium to India - under suitable safeguards of course - because cleaner energy is one of the most important contributions that Australia can make to the wider world," Mr Abbott said.

The agreement is now being examined by the parliamentary treaties committee, which will close submissions on November 28. There are also talks between officials on administrative arrangements. Both the treaties process and the administrative arrangements must be finalised before Australian uranium producers can start exports to India.

Minerals Council uranium spokesman Daniel Zavattiero told AAP the industry expected to start shipments next year. "The industry position is things are moving okay," he said. "We expect some point next year it will come into force and become operational, then we can start on shipments and sales."

Initial sales are expected to start on a small scale, but the outlook is strong. The International Energy Agency estimates that while nuclear provides three per cent of India's power today, it will grow to 12 per cent by 2030 and 25 per cent in 2050.

India plans to invest $96 billion in nuclear plants to 2040, with 21 operating now, six under construction and 57 planned or proposed. "It's very positive for us," Mr Zavattiero said.

The agreement stipulates India must only use the uranium for peaceful purposes that adhere to recognised international safety standards. It is controversial because India has refused to sign the Nuclear Non-Proliferation Treaty despite possessing an arsenal of atomic weapons.

Australia has the largest share of uranium resources in the world but currently exports only 8400 tonnes a year, valued at over $820 million. Sydney will host a meeting on Wednesday involving ministers from 12 countries to discuss nuclear non-proliferation.

The Forum for Nuclear Cooperation in Asia is a regional network to promote the peaceful uses of nuclear technology in the Asia-Pacific. Industry Minister Ian Macfarlane, who will host the event, said Australia was committed to the safe and efficient application of nuclear science and technology.

Source: news.theage.com.au

[Indian Customs Circular] : Regarding All Industry Rates (AIR) of Duty Drawback w.e.f. 22.11.2014

Circular No. 13/ 2014-Customs

F. No. 609/118/2014-DBK

Government of India

Ministry of Finance, Department of Revenue

Central Board of Excise & Customs

New Delhi, dated 18 th November, 2014

To

All Chief Commissioners of Customs / Customs (Prev.)

All Chief Commissioners of Central Excise/Customs & Central Excise

All Director Generals under CBEC

All Commissioners of Customs / Customs (Prev.)

All Commissioners of Central Excise/Customs & Central Excise/Service Tax

Subject: All Industry Rates of Duty Drawback effective 22.11.2014 - Reg.

Ma’am/Sir,

The Ministry has notified revised All Industry Rates (AIR) of Duty Drawback vide Notification No. 110/2014- Customs (N.T.), dated 17.11.2014. This notification comes into force on 22.11.2014.

2. Some of the broad aspects, from amongst the changes notified with respect to AIR of duty drawback and entries in the Schedule, are the following –

(a) As before, the drawback rates have been determined on the basis of certain broad average parameters including, inter alia, prevailing prices of inputs, input output norms, share of imports in input consumption, the applied rates of central excise and customs duties, the factoring of incidence of service tax paid on taxable services which are used as input services in the manufacturing or processing of export goods, factoring incidence of duty on HSD/furnace oil, value of export goods, etc.

(b) Many items already covered under the Drawback Schedule prior to incorporation of erstwhile DEPB items, shall see a change in the AIR. In continuation of a transitory arrangement, for the items incorporated in the drawback schedule from the erstwhile DEPB Scheme there is a reduction in the AIR.

(c) Drawback caps continue on most tariff items with AIRs above 2%. The caps have been revised. At rates below 2% there is cap with respect to guar gum and frozen marine products.

(d) Further, in the case of project exports, where export product is accompanied with ARE-1 and for which no drawback cap has been prescribed in the Schedule, the Note/Condition (6) in the AIR notification now specifies a cap. It has been provided that such cases shall be declared by the exporter and the maximum amount of drawback that can be availed under the Schedule shall not exceed the amount calculated by applying the ad valorem rate of drawback to one and half times the ARE-1 value. In such cases, before Let Export Order is made, the relevant ARE-1 value (s) are to be recorded in the "Departmental Comments" field which is to be also taken into account at the subsequent stage of drawback processing.

2

(e) Several entries have been rationalized by merging them at respective four digit level or under the respective residuary sub-heading ‘others’. Tariff item numbers have seen a change in many cases.

(f) The hitherto residuary rate of 1% (composite) and 0.3% (Customs) is changed to 1% (composite) and 0.15% (Customs). Further existing residuary rates of 1.3% and 1.7%, have been increased to 1.4% and 1.9%, respectively, with some exceptions.

(g) In chapter 57, the six digit tariff item (TI) under 5705 have been changed to refer to the composition of fibre as is under other four digit tariff items. Further, all caps have been made on the basis of per sq.mtr instead of earlier per kg (for some items) in the chapter.

(h) Several entries have been modified /amended to address issues brought to Ministry’s notice. Laptop bags and shopping bags have been specifically mentioned at six digit level below TI 4202. ‘Cami’ has been included with women’s/girl’s tops in TI 611402 and 621102; ‘three fourth pants’ along with ‘capris’ included in TI 610302, 610402, 620302, and 620402; and ‘leggings" included in TI 610402. An entry for ‘other jackets’ below TI 6114 and 6211 has been made. Mountain terrain bicycles have been specified against TI 871203. Cricket bats made from English willow (TI 9506) have been distinguished from other cricket bats.

(i) Separate entries have been created distinguishing certain export products such as cotton yarn of less than 50 counts or 50 or more counts (Chapter 52); core spun cotton yarn containing 3% or more of lycra /spandex/ elastane (TI 5205); flame retardant fabric treated with organic phosphorous compound (TI 5209); knotted/tufted woolen /fine animal hair carpets containing 15% or more by weight of silk (TI 5701, 5703); embroidery in the piece, in strips or in motifs, of flax/linen (TI 5810); cotton blankets (TI 6301); leather safety footwear with protective toe caps of composite/synthetic material (TI 6403); glass artware/handicraft made out of two or more ply glass with or without metallic fusion (TI 7020); delivery tricycles/cycle rickshaws (TI 8712); specified electrical apparatus, of aluminium (TI 8536) and parts of aluminium for specified electrical apparatus (TI 8538).

(j) AIR has been provided to calcined kaolin packed in HDPE/ LDPE/ PP bags (TI 2507), umbrellas, etc. of Chapter 66 and artificial flowers, etc. (TI 6702). Composite rate of 7% has been provided for all agricultural machinery etc. of TI 8432.

(k) AIR has been fixed as Rs. 219.9/gm for gold jewellery /parts and Rs. 3112.5/kg for silver jewellery /articles. Guar Gum has been provided ad valorem rate (composite) of 0.75% with a cap of Rs. 1270 per MT.

(l) Note/Condition (20) in the AIR Notification specifies that "shirts" shall include "shirts with hoods". Similarly, Note (25) specifies that "vehicles" of Chapter 87 shall comprise completely built unit or completely knocked down (CKD) unit or semi knocked down (SKD) unit.

3. It has been made explicit that where the claim for duty drawback is filed with reference to the rate in the AIR Schedule, an application for fixation of Brand Rate under Rule 7 of the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995 shall not be admissible. For this, para 2 of the Notification and amendment to the said Rule vide Notification No.109/2014-Customs (N.T.) dated 17.11.2014 may be referred. 3

4. In this context, it is also clarified that the exporters opting for claim of brand rate shall declare the figure "9801" as an identifier in the shipping bill under the Drawback Details on basis of which they may subsequently apply to Central Excise for determination of brand rate. The Commissioners of Central Excise shall facilitate such exporters in terms of paras 5A-5C of Instruction No. 603/01/2011-DBK dated 11.10.2013 with, interalia, the grant of provisional brand letters.

5. The Commissioners are expected to ensure that the due diligence is exercised to prevent any misuse. As before, it may be ensured that exporters do not avail of the refund of service tax paid on taxable services which are used as input services in the manufacturing or processing of export goods through any other mechanism while claiming AIR. Moreover, there is need for continued scrutiny for preventing any excess drawback arising from mismatch of declarations made in the Item Details and the Drawback Details in a shipping bill. Also, in case of claim of the composite (higher) rate of AIR, the processing at the time of export should specifically ensure availability of ‘ Non-availment of Cenvat certificate ’ etc at that stage itself.

6. It is requested to download the notifications from the Board’s website (www.cbec.gov.in) and carefully peruse them and thereby take note of all the specific changes notified.

7. With trade facilitation in view, tenure of the Drawback Committee constituted by Central Government has been temporarily extended. Therefore, if any inconsistency or error is noticed or difficulty faced, the Board may be apprised so that the appropriate action can be initiated.

8. Suitable public notice and standing order may also be issued for guidance of the trade and officers.

(Rajiv Talwar)

Joint Secretary to the Government of India