IT: Where in order to prove genuineness of gift, assessee had only filed an affidavit and copies of cheques and pay orders but did not file any of documents such as copy of proof of income of donor, copy of bank account of donor from where withdrawals were made along with proof of his identity, Tribunal rightly concluded that transaction of gift was sham and, thus, amount in question was to be added to assessee's taxable income under section 68
Tuesday, 21 January 2014
Bank route not sacred anymore; transfer of funds via banks doesn’t prove genuineness of transaction,
IT : Transaction through bank account is not enough to explain money; creditworthiness of creditors and genuineness of transaction is to be examined
Assessee is liable to pay interest on excess duty demand arising due to retrospective increase in pr
Excise & Custom : Liability to pay interest on short payment of duty is absolute and reasons for such short payment are not germane; therefore, differential duty demand arising due to retrospective price-rise is also liable to interest
No substantial question of law arose if Tribunal confirmed estimated additions for a part of bogus p
IT : Where, on basis of records, Tribunal had made addition of only 20 per cent of total purchases from a party as bogus, it was to be upheld due to absence of any substantial question of law
India Exports Rise To Us$ 857.61 M In December- 2013
India's premier research company in export import market research, announced today that India's Pharmaceutical products exports in December- 2013 has grew to US$ 857.61 M, a increase of 17.52% compared to November 2013.
This finding is based on India Pharmaceutical products export data of InfodriveIndia.com and is based on export shipping bills filed at Indian customs by exporters from India through December- 2013 at more than 110 ports in India like JNPT, Bombay Air and Sea , Chennai Air & Sea , Delhi IGI Air, Delhi Tughlakhabad ICD, Delhi Patparganj, Kolkata Air and Sea, Bangalore Air and many more. InfodriveIndia.com India Pharmaceutical products Export database is considered to be the most comprehensive, up-to-date and authentic information on India's foreign trade of Pharmaceutical products.
According to Pradeep, Chief Research Associate of InfodriveIndia.com, compared to November 2013, a increase of USD 857.61 M in December- 2013 has been noticed. He further gives a analysis and break up of major product categories , major countries and major Indian ports under Pharmaceutical products as follows :
A. Exports of Medicaments Consisting of Mixed or Unmixed products for Therapeutic or Prophylactic uses has grew month on month basis by 19.48%.Total value of exports in December- 2013 was 785.63 M, compared to November 2013 , there is a increase of 128.08 M in December- 2013, growth rate in percentage terms is 19.48%, the major destination countries were United States, South africa, Kenya, Nigeria and Russia and major Indian ports were Bombay Air, JNPT, Hyderabad Air, Hyderabad ICD and Bangalore Air.
B. Exports of Medicaments Consisting of Two or more Constituents has fallen month on month basis by -8.11%.Total value of exports in December- 2013 was 37.64 M, compared to November 2013 , there is a decrease of -3.32 M in December- 2013, growth rate in percentage terms is -8.11%, the major destination countries were Nepal, United States, China, Zimbabwe and Germany and major Indian ports were JNPT, Raxaul, Hyderabad ICD, Bangalore Air and Delhi TKD ICD.
C. Exports of Pharmaceutical Goods has grew month on month basis by 45.72%.Total value of exports in December- 2013 was 20.74 M, compared to November 2013 , there is a increase of 6.51 M in December- 2013, growth rate in percentage terms is 45.72%, the major destination countries were Kenya, South africa, Malawi, Mozambique and Spain and major Indian ports were JNPT, Ahmedabad ICD, Madras Air, Bombay Air and Ahmedabad Air.
D. Exports of Human Blood, Animal Blood Prepared for Therapeutic, Prophylactic and Diagnostic uses has fallen month on month basis by -43.45%.Total value of exports in December- 2013 was 6.96 M, compared to November 2013 , there is a decrease of -5.35 M in December- 2013, growth rate in percentage terms is -43.45%, the major destination countries were Turkey, Zambia, Sri Lanka, Myanmar and United States and major Indian ports were Bombay Air, Hyderabad Air, Bangalore Air, Delhi Air and JNPT.
Pradeep says that the above information is on major product categories, and users requiring detailed analysis and reports on their specific products can contact Sales team at InfodriveIndia.com with detailed description of their product, brand names and its uses.According to Pradeep, usually InfodriveIndia.com team delivers most of the projects within 3 working days.
InfodriveIndia.com analysis and research is done from export statistics from Indian customs which is based on export shipping bills filed at various ports, InfodriveIndia reporters collect this data from every Indian port, and InfodriveIndia database yields the most timely, accurate, comprehensive information available on trade through India Ports. Recently after a long and persistent lobbying with Indian Govt, InfodriveIndia.com has been able to release export import data almost on realtime basis, bringing the backlog time to just 3 days, compared to Govt sources which are around 6 months old. Another unique feature of InfodriveIndia.com database is unparalleled coverage of 110 ports in India.
InfodriveIndia.com is 16 year old market leader and primary source of India Export data in India. The India Import Export data bank, which is at the core of InfodriveIndia.com trade information services is unique and has been categorized by Harmonized system in over 25,000 product codes. InfodriveIndia researchers provide expert data analysis and interpretation tools, Charts, Pivot reports in MS Excel and detailed item wise records to support decision-marking for International Trade, understanding India export market, competitive intelligence and brand protection.
World's top market research companies, Export promotion councils, trade associations, domestic and foreign governments, and over 15,000 corporates from more than 30 countries rely on InfodriveIndia.com for meaningful export import trade intelligence to guide their International business strategies.
Source:- indiaprwire.com
Delay in filing appeal to be condoned in absence of either gross negligence or mala fide intention o
IT : Unless there is gross negligence or mala file intention, delay in filing appeal to be condoned
Cabinet Allows Import Of Electricity From India
In an attempt to keep up the momentum for friendly relations, the federal cabinet allowed on Monday import of electricity from India despite internal opposition.
“The cabinet gave approval to the signing of an MoU (memorandum of understanding) between Pakistan and India for trade of electricity,” an official statement said. The water and power ministry had initiated negotiations with India in this regard, it said, adding that the World Bank had undertaken to finance feasibility study of the project.
Informed sources told Dawn the cabinet meeting had discussed the issue for almost an hour and most of the ministers opposed the proposal, particularly its timing, and said it would have a “negative symbolic impact” at a time when India was taking steps to deprive Pakistan of its water by building dams on rivers assigned to this country.
Moreover, they said, it would be taken in bad taste by the nation and influential quarters as the Indian army chief had recently confessed to having killed Pakistani troops on the Line of Control and threatened to do the same in case of future violations of the LoC.
It was argued that allowing the bilateral electricity deal soon after relaxation on trade relations would provide the opposition parties an opportunity to gain public support.
On Saturday, the two countries had agreed to keep the Wagah border opened for 24 hours for trade and remove non-tariff barriers.
However, some influential cabinet members like Finance Minister Ishaq Dar and Water and Power Minister Khwaja Mohammad Asif spoke in favour of the electricity import from India. Khwaja Asif was of the opinion that technically it was quite a feasible option.
The crux of the two ministers’ arguments was that whatever might be the prevailing circumstances, at the end of the day if the government failed to ensure power supply to people it would be politically difficult to face them. Therefore, the government should exploit all options to increase power supply irrespective of its sources.
Prime Minister Nawaz Sharif supported this view and allowed the water and power ministry to go ahead with the signing of an MoU between Pakistani and Indian companies.
In September, the Senate’s standing committee on water and power had opposed the proposal to import electricity from India, asking the government to give up the plan and focus on completing the ongoing hydropower projects.
“How is it possible to import electricity from India amid exchange of heavy fire on the borders for 20 days in a month,” wondered chairman of the standing committee, Senator Zahid Khan of the Awami National Party.
The committee had observed that the government was going to spend a substantial amount on feasibility studies and raise loans form multilateral agencies for the project. The money should be spent on expediting the ongoing hydropower projects.
Source:- dawn.com
Apgmja Urges Government To Lift Ban On Import Of Gold
The All Pakistan Gem Merchants and Jewellers Association (APGMJA) has urged the government to lift Economic Co-ordination Committee's ban of 30 days on the import of gold in a bid to ease pressure on Pakistani rupee against the US dollar. In a statement on Tuesday, Chairman APGMJA Habibur Rahman alleged that the government continued putting up hurdles in export of handmade pieces of jewellery and value-added goods.
"Its claims of promotion of exports and strengthening of economy have proved to be empty slogans, he added. He said the government has slapped ban on the commercial import of gold on the presumption that 4,000 kilogram of gold was imported, 1,000kg of hand made jewellery was exported whereas 3,000 kilogram of gold remained unaccounted for, therefore dollar is being drained out from the country on account of gold import.
He recalled that the government had imposed ban on the import of gold under SRO 760 on 28th July, 2013 to stop dollar drain out and strengthen dwindling exchange rate but that policy also failed and the Pak Rupee continued to slide. He pointed out that the gold and gem industry imported raw gold for the purpose of export of hand made jewellery to Gulf states, UK and the United States. However, due to unilateral policy of the government the export of gem and jewellery has decreased by 95 percent.
Rehman categorically stated that the exporters of jewellery have nothing to do with the import of 4,000kg of gold. The gold industry importers imported only 76kg gold under the SRO 760 out of which 50kg of jewellery has so far been exported whereas jewellery of the remaining 26kg is under process of making.
He said under SRO 760, the Trade Development Authority of Pakistan (TDAP) gives permission to import gold. It is a matter of great concern for APGMJA that 4,000kg of gold was imported whereas only 1,000kg gold was used for handmade jewellery. He demanded of the government to investigate who gave permission to whom for import of such a large quantities of gold. He said due to bad policies of the government, the export of jewellery has come down to $2.5 million from September to January as compared to $30 million of corresponding period of last year.
He said Pakistan has lost its markets and customers to India, due to cheap labour and withdrawal of EU GST facility for India, Pakistan's exports of jewellery was rising. However, due to ban on import of gold, export of jewellery has been hit hard. He called upon the government to lift the ban on import of gold otherwise APGMJA will consider countrywide agitation and closure of the business.
Source:- brecorder.com
De Beers Hikes Rough Prices
The world's biggest diamond cutting and polishing centre in Surat is bracing for the increased flow of lab-grown synthetic diamonds after De Beers increased the prices of rough diamonds in the small category by around 6-7 per cent and big diamond category by an average of 5 per cent at first sale sight of 2014 held in Botswana's Gabarone on Monday.
Industry leaders fear the hike in rough diamond prices by the De Beers is set to affect the profit margin of the small and medium diamantaires and force them to go for buying cheap lab-grown diamonds, which would be later mixed with the natural diamond parcels.
The DTC sightholders who attend the first sale sight of De Beers at Gabarone on Monday informed that the company has increased prices in all the diamond categories by an average of 5 per cent.
While the big diamond category above 0.50 carat has attracted price hike between 5-6 per cent, there was a 6-7 per cent increase in the small diamond category below 0.30 carat.
"De Beers is anticipating the Christmas season in 2014 to remain robust following increased demand from US and other diamond consuming markets. However, they will continue to increase the price till March-2014. But, things are not as good in the cutting and polishing centre as many small time unit owners are not in the position to buy costly raw material. Instead, they will go for lab-grown diamonds and mix them with the natural diamond parcels," said a DTC sightholder requesting anonymity.
In order to tackle the issue of lab-grown diamond being mixed with the natural diamond parcels, the Gems and Jewellery Export Promotion Council (GJEPC) trying hard to convince the Director General of Foreign Trade (DGFT) and the ministry of commerce to separate out the HS code for the natural and lab-grown diamonds.
Pankaj Parekh, vice-chairman, GJEPC said, "It is a big cause of worry for the industry as the lab-grown diamonds are coming into the country and they are being exported along with the natural diamonds under the single HS code. We urgently need separate HS codes for the natural and lab-grown diamonds to stop the menace"
Dinesh Navadia, president, Surat Diamond Association (SDA) said, "The small unit owners can't buy raw material from the second market as the prices will shot up to 8-9 per cent. In 2013, there was a 15 per cent increase in the rough diamond prices."
Source:- timesofindia.indiatimes.com
Rupee Takes A Plunge Against Dollar Ahead Of General Elections, Figures Show
Rupee displays an anomalous behaviour during general elections in India. In a pattern seen in every Lok Sabha election in the last 15 years, rupee has weakened against the dollar during election time or months preceding the polls.
Four Lok Sabha elections have been held since 1998 and the political parties are rolling up their sleeves for the upcoming polls scheduled in May this year. The elections may get notified in the first week of March.Interestingly, the currency had gone in a tailsplin against the greenback in August last year too, owing to global factors like Federal Reserve’s imminent decision on quantitative easing. From Rs59.66 level against the dollar on July 10, the currency, in its steepest fall ever, came down to Rs68.33 per dollar within one-and-a-half month. However, it remains to be seen whether the currency replicates the pattern of weakening against the dollar in the months preceding the Lok Sabha elections this time round.
Take for example the case of general elections of May 2009, when the United Progressive Alliance (UPA) government had completed its first term and had gone into the elections in five phases for one month starting April 16. As per the data accessed by dna, on January 1 2009, rupee was at 48.77 against the dollar and it touched Rs 50.52 against the dollar on April 28, when the general elections were at its peak. Interestingly, in the whole of March 2009, the currency remained above Rs50 a dollar. From 51.94 level on March 2, it kept oscillating till 50.39 to end the month at 50.73 on March 31. After the elections in June the rupee reached Rs47 level against the dollar. Almost similar was the case in 2004. From 43.60 level in March, the currency weakened almost by Rs2 to Rs45.41 against the dollar on May 11.
Elections were held in four phases between April 20 and May 10, 2004. Experts agree that weakening of the currency is seen in the election year. Most of the forex punters dna spoke to were ambiguous about the reasons behind the pattern. However, most agreed that foulplay and rigging to get maximum value of dollars stashed illegally abroad could not be ruled out.
According to the findings of forex consultants India Forex Advisors, rupee depreciated 27% one year prior to the 2009 elections and saw 4.5% depreciation three months before the 2009 elections. The agency’s findings reveal that in 1998 too, the currency depreciated by 10% one year prior to the elections and 7.8% three months before the elections. In 1996 also, the currency registered a 13% depreciation according to the forex advisory consultants.
Source:- dnaindia.com
There is no requirement to seek more than one comparable to apply CUP method; TP matter remanded
IT/ILT : Where it is proved that effective rate of royalty paid by assessee was less than royalty paid by other AEs; addition would be unjustified
Order of Tribunal on merits can't be stayed at admission stage, otherwise it tantamounts to allowing
CST & VAT : Where Tribunal has held in favour of assessee on merits, such judgment cannot be stayed at admission stage as that would permit assessing authorities to pass orders against assessee, thereby, virtually allowing appeal; however, to safeguard interests of revenue, it was held that subsequent assessments would be subject to outcome of present appeal
CLB wasn’t an appropriate forum to adjudicate on transferor’s right to sell shares to transferee
CL: CLB is not an appropriate forum to adjudicate on transferor's right to sell shares to transferee
President gives his assent to creation of Directorate of Income-tax (Risk Assessment)
IT/ILT : Creation of Directorate of Income-Tax (Assessment) at New Delhi
Foreign investors allowed to remit funds via bank of their choice for transactions permitted under F
FEMA/ILT : Clarification on Facilities for Persons Resident Outside India
IRDA drops charges against Max Life Insurance on complying with Anti-money laundering norms
INSURANCE : Compliance with AML Guidelines - Letter of Advisory to Max Life Insurance Co. Ltd.
SEBI brings in stringent monitoring mechanism for FIIs gross long position in interest rate futures
SEBI : FII Position Limits in Exchange Traded Interest Rate Futures (IRF)
SEBI gives two more years to existing users and sales personnel to get interest rate derivative cert
SEBI : SEBI (Certification of Associated Persons in The Securities Markets) Regulations, 2007 - Obtainment of Series-IV : IRD Certification by Specified Approved Users and Sales Personnel of Trading Members Who are Registered as Such in Currency Derivatives Segment of A Recognized Stock Exchange & Trading in Interest Rate Derivatives - Extension of Time Period for Obtaining of Said Certification
Prescribed authority allowed to furnish info received under Prevention of Money Laundering Act to CC
MONEY LAUNDERING : Section 66 of The Prevention of Money-Laundering Act, 2002 - Disclosure of Information - Notified Authority - Amendment in Notification No.GSR 381(E), Dated 27-6-2006
Sums paid for purchase of software without transfer of license isn’t royalty under DTAA
IT/ILT : Payments for Multiple purchases of software sans transfer of license to buyer-assessee is not royalty under DTAA
No unexplained investment in stock as assessee had sufficiently explained valuation of stock
IT : Where books of account of assessee were not rejected, and assessee explained valuation of stock based on gross profit rate and discount rate, no interference was called for
Charge against a property couldn't be enforced against bonafide buyer of such property who had no no
CST & VAT : Commercial Tax Department cannot recover pending tax dues of a person from second buyer of such person's property, if such buyer has had no notice of such charge
Share trading business on own behalf is ‘jobbing’; not speculative in view of proviso to sec. 43(5)
IT : Share trading business on own behalf is "jobbing"; Jobbing is not speculative in view of proviso(c) to section 43(5)
Royalty paid to Foreign Parent Co. was at ALP as it was lesser than paid by other AEs and approved b
IT/ILT: Where assessee made payments of royalty to its parent AE for use of technical know how and trademark, in view of fact that said payments were duly approved by RBI and, moreover, amount paid by assessee was lesser than similar payments made by other group entities to parent AE, TPO was not justified in making adjustment in respect of same in course of transfer pricing proceedings
CCI approved combination of Mitsubishi and Hitachi as it was already facing competition constraints
Competition Law : Where assessment of proposed combination was based on market of BTG equipments, in view of fact that there was overcapacity in domestic BTG manufacturing sector as well as competitive constraint was posed by other significant players in market including imports, it was considered that proposed combination was not likely to had any appreciable adverse effect on competition and, therefore, proposed combination was to be approved under section 31
ITAT rightly recalled its order as assessee presented sufficient reasons for his absence from procee
IT : When Tribunal on being satisfied, had recalled its earlier order dismissing appeal for non-prosecution and decided appeal on merits, its order need not be interfered with
No credit available, if inputs were stored outside factory without following prescribed procedures
Cenvat Credit : If inputs have been stored outside factory without seeking permission and without following procedure specified in Rules and there is no positive finding that inputs were used in manufacture and credit was taken only after receipt of inputs in factory, assessee cannot be allowed any credit on such inputs
HC slams revenue for making scrutiny assessment without serving scrutiny notice within stipulated pe
IT : Assessment order passed under section 143(3) without serving notice to assessee under section 143(2) within stipulated period of time, was invalid and, thus, deserved to be set aside
TDS credit can't be allowed to de-jure owner even if de facto owner didn't claim credit thereof
IT: Credit for TDS has to be normally given to person in whose hands corresponding income is assessable and mere fact that said person has paid tax in full on his own, or has not preferred to claim credit in respect of TDS, is no ground for allowing credit to another
VCES - CBEC advises assessees to pay full tax, take discharge certificate and, then, take credit as
GST : Section 107 of The Finance Act, 2013 - Service Tax Voluntary Compliance Encouragement Scheme - CBEC Clarifies That : (A) Declaration Becomes Conclusive only Upon Issuance of Acknowledgement of Discharge, Which Can be Issued only After Payment of Tax Dues in Full Along With Interest; (B) VCES Declarants Should Make Payment of The Entire Service Tax Dues at The Earliest and Obtain The Discharge Certificate; and (C) Eligibility of Cenvat Credit Would be Governed by The Cenvat Credit Rules, 2
Excise department may raise demand deducted from income surrendered to IT department and documents s
Excise & Customs : Where : (a) assessee surrendered substantial unaccounted income to Income Tax Authorities and (b) based upon this disclosure, documents seized and inventories prepared by Income Tax Department, excise department has raised demand of duty, assessee cannot be granted full waiver of pre-deposit
ITAT nods to adjustments towards working capital as assessee received advances whereas comparable ha
IT/ILT: Where in course of transfer pricing proceedings, it was noticed that assessee had been receiving advance payments as compared to its comparables which were having sundry debtors, in such a situation, working capital adjustment was to be given to assessee
Govt. allowing sale of medicines at discounted price within allotted premises isn’t anti-competitive
Competition Act: Chemists and druggists allotted shops by State within premises of public health facilities can be bound with reasonable conditions which facilitate availability of medicines and drugs to consumers at a reasonable price; such a policy cannot be said to be an anti-competitive policy
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