IT : Where assessee-developer had shown valuation of flats mortgaged with Development Authority at higher rate just to meet legal requirement, Assessing Authority could not adopt said value in respect of other flats sold to other persons
Monday 6 January 2014
CAG can audit all receipts of private telecom cos. and not their expenditure, says HC
CL : Delhi HC : CAG can audit accounts of private telecom cos. with the caveat that audit shall be of receipts only
Department couldn't seek condonation of 11 years as there was gross negligence in pursuing matter
Excise & Customs : Where department had been grossly negligent in pursuing matter and had been challenging order before various forums contrary to procedure laid down by law and had consumed 11 years and 227 days, condonation of delay could not be allowed, as assessee must have arranged his financial affairs, which need not be disturbed at such distance of time
HC slams revenue for initiating search proceedings on basis of search warrants issued in violation o
IT: Issuance of authorization of search and seizure warrant without there being any information in possession about assessee and without recording satisfaction about not producing relevant books of account could not be sustained
Pre-deposit order of Tribunal is appealable before HC; writ petition challenging such order dismisse
Excise & Customs : Pre-deposit order passed by Tribunal is appealable under section 35G of Central Excise Act, 1944; accordingly, writ petition filed thereagainst was dismissed in view of effective alternative remedy
Provision of sec. 154 seeks to rectify apparent mistake and not dubious issues
IT : Issue of computation of deduction under section 80HHC in relation to interest received by assessee was debatable, rectification could not be resorted to under provisions of section 154
CAG can audit all receipts of private telecom cos. and not their expenditure, says
CL : Delhi HC : CAG can audit accounts of private telecom cos. with the caveat that audit shall be of receipts only
Cotton Arrival In Local Markets Posts 9.36Pc Increase
About 12.67 million cotton bales have arrived in the local markets, showing an increase of 9.36 per cent as compared to the same period of last year.
Cotton arrival in Punajb posted 7.7 percent increase as compared to same period of last year, said Cotton Commissioner in the Ministry of Textile Industry, Dr. Khalid Abdullah. Talking to APP here on Monday, he said that cotton arrival in Sindh Province also registered 13.49 percent increase as compared to the arrival of same period of last year. The cotton production target for Punjab was set at 9 million bales which was revised to 8.7 million bales and Sindh production estimates were also revised at 3.15 million bales due to flash floods in the country, he added.
He said that production target of Balochistan was set at 0.018 million bales while Khyber Pakhtunkhwa given a task to produce about 0.0043 million cotton bales during last crop season.
Cotton Commissioner said that final cotton crop output figures will be received during month of March. He said that crop production for the period under review was fixed at over 14 million bales which was revised due to damages made by torrential rains and flash floods across the cotton producing areas of the country.
Dr. Abdullah said that cotton price was recorded at 89.1 Cents per pound in international market as compared to its 80.71 Cents per pound in local market where as it was registered at 83.9 Cents in Indian market.
Meanwhile, he said that seed cotton prices at local markets of Sindh was recorded at Rs. 2,500 per 40 kg in Mirpur Khas, Rs. 2,700 in Sangar and 2,900 in Khairpur.
While, in Punjab it was recorded at Rs. 3,600 per 40 kg in Rahim Yar Khan, Rs. 3,700 in Bahwalpur and 3,200 per 40 kg in Multan and, he added.
Source:-nation.com.pk
Indian Textile Ministry To Promote Jute Fabrics For Rural Roads
The Union Ministry of Textile is planning to promote use of jute geo textiles for construction of rural roads across India.Geo textiles are permeable fabrics used as an agent to strengthen the road foundations and prevent soil erosion along the banks. Jute geo textiles are said to be about 25% cheaper than other fabrics. However, this bio-degradable material is low on longevity and is best used in rural or arterial roads, which do not attract heavy traffic.
According to a National Jute Board (NJB) official, jute-based textiles are currently in use in constructing 35 ongoing rural roads, under the Pradhan Mantri Gram Sadak Yojana, across the country.
Rough estimates available with NJB suggest that consumption of the fabric increased by about 10% a year since 2010. © Malcolm Manners
While majority of the projects are in Karnataka, in South West India, the practice is gaining popularity in at least three other states, including Odisha, Madhya Pradesh and West Bengal.
Subrata Gupta, Jute Commissioner, said that the use of jute geo textiles is likely to move up substantially in the next two years. According to Gupta, project reports for nine roads spread across five states such as Chhattisgarh, Madhya Pradesh, Odisha, Assam and West Bengal have also been prepared.
Jute geo textiles production
Rough estimates available with NJB suggest that consumption of the fabric increased by about 10% a year since 2010.
In 2010, approximately 60 lakh square metres of jute geo textile were used in road development, a top official of the cell added. Out of the 80 odd jute mills operating across the country, 13 mills manufacture jute geo textile.
Despite efforts to promote the natural fibre, absence of a regulation for mandatory use of jute instead of synthetic textiles and lack of support from local administration pose challenges before the industry, it has been reported.
Challenges.
“It is an uphill task to convince various agencies and engineers the benefits of jute geo textile unless there is a mandate,” the top official said.According to him, it will also be difficult to involve more jute mill owners in production of the fibre until the demand situation improves.
Source:- innovationintextiles.com
Revenue should make TP adjustment even during tax holiday periods, says ITAT
IT/ILT: Transfer pricing computation is also to be made even for years in which assessee is entitled to section 10A exemption
HC condones delay in passing review order by department by compensating assessee for prejudice cause
Excise & Customs : In case of delay in passing of review order by Department on account of sufficient cause, instead of non-suiting Department on technical ground, it would be appropriate that dispute between parties is decided on merits by compensating assessee, for prejudice caused to it, by way of payment of costs
No winding up if there was no admission of debt and petition was filed after lapse of three years of
CL : Winding up petition filed after lapse of three years when alleged unpaid invoices were issued would be hit by limitation
Vulnerable Gold Likely To Trade Sideways
Gold is likely to trade sideways in the domestic spot and futures market on Tuesday as the market weighs the demand, especially from China, against waning investor interest.
Overnight, the market saw gold prices tumbling $30 an ounce all of a sudden before the trading was stopped and then resumed. Since then, gold managed to crawl back to the levels seen on Monday.
But these are grim reminders of the pressure that gold is likely to come under in view of uncertainty among investors. On Monday, falling equities market and a flat dollar helped gold gain.
The other factor pushing up gold was shipments to China from Hong Kong doubled to over 1,000 tonnes till November, a clear signal that India has been overtaken.
Gold holdings in SPDR gold trust, the biggest exchange-traded fund backed by the yellow metal, was unchanged at 794.62 tonnes, while data from the US Commodity Futures Trading Commission showed that funds and money managers increased their bullish bets on gold.
In India, currency could play a role, albeit a minor one. Any drop in the rupee against the dollar could make commodities such as dollar, crude oil and vegetable oils costlier.
Spot gold, gold futures
In early Asian trade, spot gold was quoted at $1,242.55 an ounce and gold futures maturing for delivery in February at $1,241.70.
NCDEX spot gold was unchanged at Rs 29,600 for 10 gm. MCX and NCDEX gold February contracts are likely to trade below Rs 29,500.
Crude oil is likely to head lower on bets that stocks in the US rose. But cold weather in the US and the Libyan factor could cushion it from falling sharply.
Brent crude February contracts were quoted at $107.25 a barrel and US crude at $93.72.
Demand for soyameal and concerns that dry weather in Argentina could put more stress on the soyabean crop are likely to help the oils and oilseeds market to keep its head above water. Pressure is likely from the continuous arrival of domestic oilseeds crop.
Chicago Board of Trade soyabean contracts maturing for delivery in March were down at $12.70 a bushel in early Asian trade. Crude palm oil March contracts opened lower at 2,579 ringgit or $784 a tonne.
Fears that cold snap in the US could affect the winter wheat, despite higher area under the crop, and higher export enquiries are likely to keep wheat firm. Corn (industrial maize), too, could gain in tandem and also due to short-covering.CBOT wheat for March delivery ruled at $6.07 a bushel and corn for the same month at $4.27.
Source:- thehindubusinessline.com
Indian Rupee Depreciates 15 Paise To 5-Week Low Of 62.31 Against Us Dollar
The Indian rupee fell 15 paise to close at a five-week low of 62.31 against the dollar today amid bearish local stocks and importer demand for the US currency.Capital outflows from the equity market aided the rupee's decline, while a weakening US dollar overseas helped the Indian rupee to come off the day's low, a forex dealer said.
At the interbank foreign exchange market, the Indian rupee resumed sharply lower at 62.35 a US dollar from the previous close of 62.16. It moved in a range of 62.24 to 62.4650 on alternate bouts of demand and supply.
The Indian rupee closed at 62.31, a fall of 15 paise or 0.24 per cent. This was the lowest level for the Indian rupee since closing at 62.36 on December 3.
"It started the session on a weaker note today, tracking a strong dollar index and weak Asian currencies. Additionally, a falling euro seemed to have added pressure on the rupee. US dollar has strengthened against overseas currencies on upbeat outlook by the US central bank," said Abhishek Goenka, CEO of India Forex Advisors.
The HSBC/Markit Purchasing Managers Index for India's services industry fell to 46.7 in December from 47.2 in November as new orders declined. It was the sixth consecutive monthly decline in output and the longest period of continuous reduction since the 2008/2009 global financial crisis.
The benchmark 30-share S&P BSE Sensex continued its slide for the fourth straight session and closed 64 points lower. Overseas investors sold a net Rs 318.91 crore of shares today after net sales of Rs 18.06 crore last Friday, as per provisional data.
"The US dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, is trading weak for the day, which helped the Indian rupee to recover from its intra-day low," said Pramit Brahmbhatt, CEO of Alpari Financial Services (India). "During the day it depreciated almost half per cent, taking cues from local equities which traded weak and closed down." Continued receipts by exporters kept forward US dollar premiums under pressure. The benchmark six-month forward dollar premium payable in June eased to 246-248 paise
Source:- financialexpress.com
Mere delay in filing form for accumulation of surplus funds of trust won't lead to denial of sec. 11
IT : When surplus funds were accumulated and deposited with a nationalized bank, delay in filing Form No. 10 should have been condoned by Assessing Officer
Even prior to 1-4-2008, no input credit available on outward transportation from factory to buyer's
Cenvat Cedit : Definition in rule 2(l)(ii) of CENVAT Credit Rules makes it clear that outward transportation charges or taxes paid in regard thereto are claimable only with regard to transports made from one place of removal to another place of removal; no credit was available for transport upto buyer's premises prior to 1-4-2008, or thereafter
Demand arising merely due to interpretation of conditions related to SSI exemption doesn't attracts
Excise & Customs : Where issue involved 'whether value of intermediate product is includible in gross value of clearances for purpose of SSI-exemption' required interpretation of relevant conditions of SSI notification, no penalty could be levied on assessee in respect of demand depending upon interpretational exercise
Sec. 54 relief not available on mere transfer of tenancy rights
IT : Where assessee was not owner of property but held mere tenancy rights in respect of property, exemption under section 54 was not allowable
HC slams revenue for holding payment via Cenvat credit instead of PLA as invalid in absence of any d
Excise & Customs : Merely by payment of duty through use of Cenvat credit instead of payment in cash/through PLA, there is neither evasion of duty nor any loss to revenue; hence, such payment cannot be held invalid so as to seek payment in cash with interest and penalty.
No reassessment to deny sec. 80-IB relief on housing projects if AO was aware of sale of open plots
IT: Where while completing scrutiny assessment Assessing Officer was aware that assessee had sold open plots also and concluded that assessee was eligible for claim of deduction under section 80-IB (10) in relation to 'eligible profits of business' of housing project, reopening of assessment on ground that housing project was not complete as per plan approved by local authority could not be sustained
No penalty leviable on assessee as non-carrying of Form ST-18A by driver was bona-fide mistake
CST & VAT : Though Rajasthan Sales-tax Act provides that Form ST-18A is to be produced mandatorily by driver of vehicle at check-post, however, if all other relevant papers/documents like bills, vouchers and authorization letter are available with driver and Form ST-18A was missed by driver mistakenly, no penalty should be levied
Restructuring of existing roads would create new infrastructure facility; eligible for sec. 80-IA re
IT : Work involving strengthening and improving of existing road may be considered as new infrastructure facility eligible for deduction under section 80-IA
Excise laws don't mandate assessment on successors; it permits only recovery of duty from them, rule
Excise & Customs: Central Excise section 11 empowers only recovery of dues already assessed on predecessor; assessment of duty must be made on predecessor and a successor is liable only for recovery of liability once assessment order is passed and adjudicated against predecessor
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