IT : Liberal interpretation of statutory provisions taken by Courts to extend exemption available under section 54 to assessee, even in cases of investments in names of spouse and minor children of assessee cannot be extended beyond a point so to cover investments made in names of other blood relations or other relations
Monday 13 January 2014
Delay in filing appeal due to personal differences with CA was a vague excuse; delay not condonable:
Service Tax : Where assessee sought condonation of delay on ground that delay in filing appeal was caused 'due to some exigencies coupled with developed differences' with Chartered Accountant, delay was held non-condonable as said ground was vague and clearly represented that assessee had knowledge of such intervening developments
MAT credit isn’t analogous to MAT refund; HC dismisses writ seeking refund of MAT
IT : There is no provision under Act to refund amount which has been admitted and which has been paid by assessee as MAT company
Food Commodities, Dry Fruits Get Dearer
Prices of food commodities and dry fruits increased, while vegetables price came down significantly over the past month.Food commodities like rice and lentils have become dearer by as much as Rs 30 per kg. Retailers have attributed price hike to low supplies and soaring prices in India - the major source country - itself.
"Food prices are getting higher as we are not getting adequate supply," Bidur Shrestha, a retailer at Asan, told Republica, urging the government to do the needful for increasing supply. "If the supply is not raised in proportion to the rising demand, prices will increase further in the coming days."
Price of gram lentil increased by Rs 30 per kg to Rs 110 during the review period. Similarly, prices of green gram lentil and split pigeon lentil have gone up by Rs 10 per kg each to Rs 150 and Rs 120, respectively. Red lentil has become dearer by Rs 5 per kg to Rs 115, while price of black lentil has remained unchanged at Rs 138 per kg.
Pabitra Bajracharya, president of Nepal Retailers´ Association, said the recent rise in price of food commodities in Indian market is the reason behind surge in food prices in Nepal. "India is our major supplier (for food commodities). Any fluctuation in prices there affects prices here," he added.
Similarly, price of different varieties of rice has increased by as much as Rs 5 per kg over the period. Mansuli rice and Indian Basmati rice have become dearer by Rs 5 per kg each to Rs 50 and Rs 80, respectively, while price of Jeera Masino has increased by Rs 3 per kg to Rs 65.
Prices of dry fruits have also increased during the period. Almond has become dearer by Rs 75 per kg to Rs 1,100, while prices of pistachio and cashew nut have surged by Rs 150 per kg and Rs 80 per kg, respectively, to Rs 1,500 and Rs 980.
Retailers have blamed dry fruits suppliers for raising prices arbitrarily. "Importers are creating artificial shortage to increase prices on their own," Ujjawal Hada, a wholesaler of dry fruits at Indra Chowk, said.
There, however, is some relief for consumers as vegetables prices have come down significantly on the back of improved supplies. Prices of major vegetables like cauliflower, tomato, potato, and cabbage, among others, plunged during the period.
Price of cauliflower dropped to Rs 35 per kg on Sunday, down from Rs 45 per kg recorded a month ago. Similarly, prices of cabbage, tomato and potato have come down by Rs 10 per kg, Rs 5 per kg and Rs 4 per kg, respectively, to Rs 25, Rs 35 and Rs 25.
"The Kalimati market is receiving adequate supply of vegetables over the past few weeks. This has caused prices to come down," Ramesh Dangol, planning officer at the Kalimati Fruits and Vegetable Development Board, said.The market is receiving an average of 850 tons of vegetables a day at present.
Source:- myrepublica.com
Tribunal not to consider detailed submissions in pre-deposit order, mere prima-facie consideration i
Excise & Customs : While directing pre-deposit, aspects to be considered are : (a) Prima facie case for full waiver, (b) undue financial hardships of party; and (c) safeguarding interest of revenue; appellate authority is not expected to consider submissions on merits in detail and give its findings in detail at that stage
Mere bona fide mistake of assessee leading to wrong claim of deduction won’t attract concealment pen
IT : Where there was no intentional furnishing of inaccurate particulars of income and it was only due to a bona fide mistake assessee claimed deduction of NPA provision under section 36(1)(viia), rejection of said claim would not result in levying penalty under section 271(1)(c)
Onion, Mustard, Cumin Are Flavour Of Rabi Season
Cumin, onion and mustard have found favour with farmers as sowing of these crops was much higher than the expected sowing area. Overall sowing of rabi crop in the state was about 35% higher than the last year.
Officials said that in 2012-13 the sowing was in an area of 27.23 lakh hectares, which this year it was in 37.36 lakh hectare. The normal sowing of rabi crop in the state is an area of 35.75 lakh hectares. Officials said high prices of onion and cumin have led to extensive sowing in the state. Usually, onion is sown on 53,600 hectares of land, but this year it crossed the 72,500 hectares - an increase of nearly 19,000 hectares. Officials said that this was only 14,000 hectares last year.
Officials said that rabi crop sowing has picked up this year. Agriculture officials said that the sowing of onion was earlier limited to Bhavnagar only, but this year onion has spread across almost all of Saurashtra and Kutch.
Officials in the department said sowing of mustard, cumin, wheat grams and garlic had crossed 100% sowing.
Agriculture department officials said "the sowing of cumin in state was in an area of 4.54 lakh hectares which was in an area of 3.29 lakh hectares. The normal area of sowing was in 3.49 lakh hectares." Similarly the sowing of mustard was in 2.81 lakh hectares, wheat 14.08 lakh hectares, garlic 40100 hectares of land.
Officials said that this year, wheat has also really picked up. Against normal sowing of 12.44 lakh hectares, it was sown on 14.08 lakh hectares.
Officials further said that this year, because of the good rains, check dams and farm ponds which have been constructed especially in water scarce areas are full, and hence sowing has picked up in all districts.
In Saurashtra and Kutch - barring Amreli - all districts have completed 100% sowing. In Saurashtra, sowing takes place on 9.47 lakh hectares and this year it has crossed 12.32 lakh hectares which is on the higher side as compared to previous years.
Source:- timesofindia.indiatimes.com
Textile Lining Material: New Customs Value Fixed
Directorate General of Customs Valuation Karachi has fixed $3 per kg as new customs value on import of textille lining material from China It is learnt here on Monday that the directorate has issued a new valuation, which has superseded Valuation Ruling No 483/2012. According to the ruling, the customs value of textile lining material was earlier determined vide Valuation Ruling No 483/2012, dated 25-10-2012.
Various representations were received, including representations made by KCC&I regarding revision of Customs value of the said goods to reflect the current price trend of these goods in the international market. This prompted an exercise to re-determine Customs value of Textile Lining Material under Section 25A of the Customs Act, 1969.
The valuation methods given in Section 25 of the Customs Act, 1969 were followed. Transaction value method provided in Sub-Section (1) of Section 25 was found inapplicable because requisite information as per law was not available. Identical / similar goods value methods provided in Sub-Sections (5) & (6) of Section 25 of the Act ibid were examined for applicability to the valuation issue in the instant case. These methods furnished unreliable values and were not found applicable. Deductive Value Method under Sub-Section (7) of Section 25 was, therefore, adopted to determine customs values for Textile Lining Material in this case read with Sub-Section (9) ibid. Meetings were held with the stakeholders and attended by representatives of FPCC&I and KCC&I who provided feedback regarding the valuation of subject goods.
In cases where declared/transaction values are higher than the Customs value determined in the Ruling, the assessing officers shall apply those values in terms of Sub-Section (1) of Section 25 of the Customs Act, 1969. In case of consignments imported by air, the assessing officer shall take into account the differential between air freight and sea freight while applying the Customs value determined in the ruling.
The value determined vide this Ruling shall be the applicable Customs value for assessment of subject imported goods until and unless it is rescinded or revised by the competent authority in terms of Sub-Section (1) or (3) of Section 25-A of the Customs Act, 1969. The Collectors of Customs may kindly ensure that the value given in the Ruling be applied by the concerned staff without fail, it added.
Source:- brecorder.com
Nickel Climbs To Two-Week High On Indonesia Ore Export Ban
Nickel climbed to the highest level in two weeks on fears that Indonesia’s ban on mineral ore exports will cut global nickel supplies while allowing Freeport-McMoRan Copper and Gold Inc. to keep exporting copper concentrates.
Indonesia’s President Susilo Bambang Yudhoyono signed a regulation implementing the ore ban, energy and mineral resources minister Jero Wacik told reporters on 11 January, after a meeting of government ministers in West Java. The rule, which went into effect after months of wrangling, prohibits all raw ore exports and permits shipments of minerals that are processed or refined in the country.
While the decision eases concern copper shipments will be disrupted, it’s pushing up nickel prices as Indonesia is the world’s biggest mined producer. The ban is part of a wider policy in Southeast Asia’s largest economy to boost state revenue by turning Indonesia from an exporter of raw commodities into a manufacturer of higher-value products.
“The law should clearly be bullish for nickel, as we should expect to see significant lower volumes of ore flow from Indonesia to China,” David Wilson, an analyst at Citigroup Inc. in London, said after the decision.
The country accounts for 18% to 20% of global nickel supply, 9% to 10% of aluminum from bauxite and 3% of copper, Goldman Sachs Group Inc. estimates.
Futures advance
Nickel futures in London jumped as much as 2.4% to $14,190 a tonne on Monday, the highest level since 30 December, after gaining 3.3% on 10 January. Chinese ore stocks will become more valuable and many producers will not be able to use lower- grade ore from the Philippines as an alternative, said Wilson.
Shares of Nickel Asia Corp., which accounts for about a third of Philippine output, climbed as much as 4.1% to the highest intraday level since 5 November. Alumina Ltd jumped as much as 5.8% in Sydney trading on prospects for increased demand after Indonesia banned bauxite exports.
The rule reinforced a 2009 mining law that called for greater state benefit from the industry, local metals processing and reduced foreign participation. The government first limited ore exports in 2012 and then faced a series of legal challenges, leading to policy flip-flops on implementing the ban that created uncertainty over whether it would go ahead.
Newmont Mining Corp. and Freeport, which runs the world’s second-largest copper mine in eastern Indonesia, can keep exporting concentrates, said Wacik, in a turnaround from government comments last year that called for a halt to exports of concentrates, a basic product mix of copper and gold ores that have been crushed, milled and concentrated.
Freeport permit
“More than 60 companies that are planning to process ore domestically will also be allowed exports,” Wacik said, without giving the purity levels that need to be met. “Details will be published later,” he said.
PT Vale Indonesia and PT Aneka Tambang, which mine nickel and have some processing facilities in Indonesia, climbed 5.4% and 2% on Monday after Wacik’s comments.
“Freeport Indonesia has concentrate shipments set for Spain and the Philippines and expects export permits to be issued soon,” its president director Rozik Soetjipto said on Sunday. “Newmont’s local unit is operating normally while it waits for the official regulation document,” spokesman Rubi Purnomo said.
The energy and mineral resources ministry proposed 8 January companies be allowed to continue shipping mineral concentrates for three years. The minimum level of copper in the concentrates may be set at 15%, according to Soetjipto, less than the percentage produced by Freeport and Newmont in Indonesia.
Ore stockpiles
“Indonesia appears to be willing to allow miners who do some degree of processing or have definite plans for smelters in place to keep exporting but is still acting tough with the little guys,” Keith Loveard, a risk analyst at Jakarta-based Concord Consulting, said on Sunday, pointing to around 4,000 companies with mining business licenses.
Aluminum Corp. of China Ltd, the nation’s biggest producer of the metal, said 10 January that it stockpiled bauxite before the ban even as it expected the Indonesian curbs to be diluted because of the potential economic consequences. Indonesia will re-open exports as it has such a big impact, according to Li Haiming, president of the Hong Kong unit.
“The government may not backtrack on bauxite and nickel as it is confident processing plants will come online,” said Shaun Levine, an analyst at consultancy Eurasia Group in Washington.
Nickel prices
Indonesia’s nickel-ore exports are mostly in the form of laterite with 1% to 2% nickel, according to RBC Capital Markets. In China, the ore is processed into so-called nickel pig iron, an alternative to the refined metal.
“Chinese stockpiles of nickel ore are large enough to sustain the output of nickel pig iron through until at least the final quarter of this year,” RBC Capital Markets said on 19 December, citing an estimate from researcher Wood Mackenzie. Indonesia’s industry minister M. S. Hidayat told reporters in Jakarta on 8 January that China has 20 million tonnes of nickel ore in reserves ahead of the ban.
“Nickel may average $15,500 this year,” according to an ABN Amro Bank NV report on 3 January that cited the curbs in Indonesia and improved demand spurred by a global economic recovery. Last year’s average was $15,081 as prices touched a low of $13,205 on 9 July. Refined nickel prices fell 19% on the London Metal Exchange in 2013, dropping for a third year amid a glut to post the worst performance among major base metals.
Export revenue
“The curbs could worsen Indonesia’s 2014 current-account position by as much as 0.3% of gross domestic product,” Citigroup Inc. said last month, while Nomura Holdings Inc. said it will cost at least $5 billion in export revenue. “Nickel and bauxite account for about 48% of total mineral exports,” said David Sumual, economist at PT Bank Central Asia in Jakarta.
“If the ore ban had been implemented in full, the current- account deficit would increase by about 0.6% of GDP,” Sumual said. “Persistent trade and current-account deficits last year made the rupiah Asia’s worst-performer in 2013.”
“I think the rupiah has priced in for the total ban, meaning 0.6% of GDP, while the impact of the ore ban on the current-account deficit should only be 0.25% of GDP,” Sumual said.
The rupiah surged 1.1% to 12,033 per dollar as of 9:55am in Jakarta on Monday, the most in six weeks. “The currency will probably be the main winner given the the export ban was diluted,” Dariusz Kowalczyk, a senior strategist at Credit Agricole CIB in Hong Kong, said in a research note on Monday.
Job losses
The final decision reduced the impact of the rule on the country’s mining industry and economy ahead of national elections this year. Yudhoyono cannot run for a third term and has no clear successor, with Hatta Rajasa, the coordinating minister for the economy, trade minister Gita Wirjawan and state-owned enterprises minister Dahlan Iskan among those vying to be potential presidential candidates.
“It is stereotypical of President Yudhoyono’s leadership style these last few years, namely to wait until the last second to decide on something,” said Eurasia’s Levine. His decision to allow exports of some minerals and avert a possible economic catastrophe when the country can hardly afford it, is commendable.
As many as 800,000 jobs may be at risk from the ban on shipments, the Indonesian Chamber of Commerce and Industry said on 16 December. “It remains to be seen whether the government will be prepared to deal with the domestic fallout,” Loveard said.
“There is also the potential for more challenges in the courts so it is unlikely that this is the end of the story,” Loveard said. Bloomberg
Source:- livemint.com
India's Dec Vegoil Imports Hit 11-Month High Ahead Of Duty Hike
India's vegetable oil imports in December climbed 13 percent to an 11-month high, data from a trade body showed, as poor local supply and fears the country would soon hike duties on overseas purchases of edible oils prompted traders to stock up.
The government finally hiked duties last week - to 10 percent on all refined edible oils, including palm oil, up from 7.5 percent - after fierce lobbying from domestic refiners desperate to curb a flood of cheap imports from Indonesia, the world's leading palm oil producer.
India snapped up 1.07 million tonnes of vegetable oils in December, data from the Solvent Extractors' Association of India (SEA) showed on Monday, the highest since arrivals hit a record 1.2 million in January 2013 and the second-highest level since volume restrictions on imports were removed in April 1994.
"The duty hike expectation led to a surge in the monthly imports," said B.V. Mehta, executive director of the Mumbai-based trade body.
Total overseas purchases of palm oil by India, the world's top importer of vegetable oils, rose 11.5 percent to 863,205 tonnes on month, the data showed. The market had expected a drop in shipments as cold weather solidifies the oil and makes it more expensive to heat up and use.
Imports of crude palm oil rose by a quarter from a month ago to 691,740 tonnes, while imports of the refined variant fell 21 percent to 164,026 tonnes despite being cheaper.
The cost of importing refined palm oil was lower than that for crude palm oil due to Indonesia's duty structure, with the average price of imported refined palmolein at $854 per tonne versus $864 per tonne for crude palm oil, SEA data showed.
Indian import duty is paid on top of these prices."Imports of refined oil may fall in January unless the top palm oil producer adjusts its tax structures," said a Mumbai-based trader.
Last week, an Indonesian minister said the country could review its duty policy after India raised the import duty.But India's refiners want an even higher duty, possibly as much as 14.5 percent, and say last week's move was too little and too late.
India buys palm oil mainly from Indonesia and Malaysia. Palm oil makes up 80 percent of the country's total vegetable oil imports and New Delhi brings in around 60 percent of its annual vegetable oil needs which average 17 to 18 million tonnes.
Increased buying by India has not lent support, however, to benchmark palm futures on Bursa Malaysia, as rising stocks continue to pressure prices there, which fell on Monday to their lowest in over two months.
India's imports of soyoil rose more than three-fold from a month ago to 53,500 tonnes in December, the SEA data showed, as a result of slow crushing and a lower soybean crop which was hit by late rains during the harvest season.India imports small quantities of soyoil from South America. (Editing by Jo Winterbottom and Himani Sarkar)
Source:- in.reuters.com
ITAT directs afresh ALP determination after considering JV agreement; sec. 14A ruled out in business
IT/ILT: ALP determined without verifying relevant JV agreement, to be determined afresh
No extended period to recover duty if no discrepancy was found earlier in audited accounts of assess
GST: Prima facie, when assessees accounts were audited and checked in 2008 by Department and no discrepancy was detected, invocation of extended period of limitation in 2011 may not be justified
Ex-employee of liquidating-co. couldn’t claim his pending salary relating to post wind-up period, sa
CL: Claim of ex-employee of company-in-liquidation towards pending salary after date of winding up would not be maintainable
Maharashtrian VAT Authorities extend due date of audit of developers to give effect to SC’s verdict
GST : Article 366(29A)(B) of the Constitution of India read with section 61 of the Maharastra Vat Act and rule 58 of the Maharastra Vat Rules, 2005 - Works Contract - Amendment in rule 58 in line with judgment in Larsen & Toubro's case is pending consideration and till then, due date for filing audit report is extended (except in case of builders opting for composition scheme)
Haryana VAT - Notices may be sent vide e-mail/fax
GST : Rule 79 of The Haryana Vat Rules, 2003 - Notices, Etc. May be Sent Via E-Mail/Fax, Etc. - Form of Declaration in Case of SEZ also Changed
Rule 8D to be triggered on assessee’s failure to establish that indirect exp. has no bearing on exem
IT : Onus to establish that indirect expenditure has no bearing on income not forming part of total income is squarely on assessee, failing which prescription of rule 8D, subject of course to expenditure actually incurred and claimed in computing total income, would follow
No writ maintainable against show cause notice in which factual disputes are involved: HC
Excise & Customs : High Court, in its writ jurisdiction, cannot interfere at stage of issuance of show-cause notice where there are disputed questions of facts, more so, because there is an effective alternative remedy under provisions of Customs/Excise/Finance Act
Market fees levied under Bihar Agricultural produce Act not a tax for purpose of sec. 43B
IT : Section 43B, as amended by Finance Act, 1988 has, no retrospective application
Mere filing of I-T return doesn’t bar advance ruling unless scrutiny notice is also issued before fi
IT/ILT : Advance ruling application was to be admitted even if return of income was filed earlier and, scrutiny notice was issued after filing of advance ruling plea
On assessee’s failure to explain unaccounted stock, sec. 69B additions righty made by appellate auth
IT: Where in course of survey, assessee admitted that he was unable to explain unaccounted stock, authorities below were justified in making addition in respect of same under section 69B
Department can’t cancel export-import license without giving opportunity of being heard to assessee
Excise & Customs : Before cancelling assessee's Import Export Code on account of non-fulfilment of export obligation, an opportunity of being heard must be granted so that assessee may substantiate its claim as regards fulfilment of export obligation
Filing of return before due date isn’t a pre-requisite for availing of immunity from concealment pen
IT : Where assessee surrendered income during search, explained manner in which it was derived in statement and paid tax as well as interest thereon, it was not necessary to file return before due date to get immunity from penalty for concealment under clause (2) of Explanation 5 to section 271(1)(c)
Order passed by Tribunal on anti-dumping matters is appealable either before High Court or Supreme C
Excise & Customs : Since provisions of Customs Act relating to appeals are incorporated in Section 9A(8) of Customs Tariff Act, order of Tribunal passed in appeal under Section 9C of Customs Tariff Act would be subject to appeal, either to Supreme Court or to High Court
No reassessment beyond four years due to TDS default if assessee had disclosed all facts during asse
IT: Where assessee disclosed all material facts necessary for completing assessment, in view of proviso to section 147, Assessing Officer could not initiate reassessment proceedings after expiry of four years from end of relevant assessment year on ground that assessee had made payments of salary to its employees rendering services abroad without deducting tax at source and, thus, amount so paid was liable to be disallowed under section 40(a)(iii)
Issuance of scrutiny notice before filing plea of advance ruling bars its admission
IT/ILT : Bar on admission of advance ruling application under section 245R(2) attracted if notice under section 143(2) issued before filing of application
Receipt of old TV by dealer under exchange scheme tantamounts to purchase; liable to purchase tax
CST & VAT : Where assessee, a dealer of TV, had provided new TV sets in lieu of old TV sets on payment of additional consideration, such transaction amounted to purchase of old TVs and sale of new TVs liable to purchase/sales tax as appropriate
No exemptions if assessee failed to prove source of money camouflaged as agricultural income
IT : Where assessee failed to explain source of agricultural income claimed to have been earned by it, no exemption could be allowed in respect of such income
Grant of Injunction by DRT conditional upon deposit of certain sum doesn’t ipso facto constitutes a
Banking Laws : Where DRT in an interlocutory application taken out in an appeal under section 17 of SARFAESI Act determines prima facie amount of debt due by appellant/debtor, same constitutes debt due by appellant as determined by DRT for purpose of second proviso to section 18 of SARFAESI Act
Subscribe to:
Posts (Atom)