IT/ILT : SC relied on ratio of Mitsubishi that ‘filing of return doesn’t attracts bar on advance ruling’; sets aside two orders. The assessee, Sin Ocean Shipping ASA Norway, filed the instant SLP seeking to set-aside the orders passed by AAR [GTB invest ASA, In re [2012] 18 taxmann.com 262 (AAR- New Delhi)] and High Court [NETAPP B.V. v. AAR [2012] 24 taxmann.com 174 (Delhi)
Thursday 30 January 2014
AO couldn’t seek proprietary assessment to disallow an exp. because it exceeded the sum incurred in
IT : Where assessee proved identity and creditworthiness of share applicants and genuineness of transaction by furnishing complete details, addition as explained share capital was unjustified
Refund of excise duty in pursuance of State policy is a capital receipt; not chargeable to tax
IT: Amount received by assessee under section 80-IB on account of excise duty refund in pursuance of policy of State would be treated as capital receipt and, thus, not chargeable to tax
Assessee can't seek penalty waiver on pretext of ignorance of law if it clearly provides for ST liab
Service Tax : Section 66A clearly provides for an obligation on recipient of service to remit service tax; hence, there cannot be a plea based on ignorance of a legislative provision and assessee is liable to pay service tax along with interest and penalties
Leather, Products Exports Up By 17.09 % From April-Nov
Export of leather and leather products for the first eight months of the current financial year i.e. April-November 2013 touched $3.78 billion against as compared to $3.23 billion, in the corresponding period of last year, registering a growth of 17.09%.
According to Council for Leather Exports, in Rupee terms, the export touched Rs 22,661 crore in April-November 2013 as against the last year’s performance of Rs 17,615.13 crore registering a positive growth of 28.64%.
The major markets for Indian Leather & Leather Products are Germany with a share of 12.60%, UK (11.96%), USA (10.51%), Hong Kong (8.82%), Italy (8.77%), France (6.39%), Spain (5.34%), Netherlands (3.79%), China (2.48%), Belgium (1.86%), UAE (2.53%), Australia (1.48%).
According to CLE, these 12 countries together accounts for nearly 76.53% of India’s total leather& leather products export. Most importantly, India’s Export of Leather & Leather Products to the European Union touched $2.9 billion in 2012-13, accounting for a share of close to 60% in India’s total leather export trade of $ 4.99 billion.
Meanwhile, the 29th Edition of the India International Leather Fair (IILF), Chennai will be held from January 31 to February 3, 2014.
The India International Leather Fair-Chennai is organised by the India Trade Promotion Organization (ITPO), along with the Council for Leather Exports (CLE). This year the fair will focus on green technology, machinery & equipment, chemicals, materials & components.
Source:- business-standard.com
Sum incurred on recovery of duty drawback is not business exp.; not excludible for computing sec. 80
IT: Duty drawback incentive would not form part of profits earned for purposes of section 80-IB
Nigerian Government To Leverage On Backward Integration Policy To Revive Iron, Steel Sector
The Federal Government said it would develop and implement a comprehensive backward integration policy, BIP, to revive and sustain the growth of the iron and steel sub-sectors of the Nigerian economy.
The Minister of Industry, Trade and Investment, Olusegun Aganga, said at the one-day stakeholders’ forum on Transformation of Minerals, Iron and Steel Sub-Sector for Industrial Revolution in Nigeria in Lagos, on Thursday that the initiative was in line with the Nigeria Industrial Revolution Plan, NIRP.
The stakeholders’ forum, which was organised by the ministries of Industry, Trade and Investment, and Mines and Steel Development provided the platform for all players in the iron and steel sub-sector to fashion out workable and sustainable plans of action to leverage the BIP to support the development of critical industries across the country.
What government did on Thursday, Mr. Aganga said, was to bring together all the stakeholders in the metal sector considered critical to industrialisation, to enable them look at how Nigeria could develop and attract more investors into the sector through the right policies and strategies.
“We cannot just sit down in Abuja and develop a policy for the sector without the full engagement, input and involvement of key players in the sector,” the minister said. “When you look at the current situation in the iron and steel sector, Nigeria spends about $3.3billion annually in the importation of steel, even the country has iron ore deposits.”
He said at the moment, Nigeria has some cold rolling mills in the country, saying government decided to implement the Backward Integration Programme in iron ore so that Nigeria can become a net exporter of iron ore just as it did with cement.
The success the country has achieved with the BIP in the cement industry, he pointed out, has proved that Nigeria can replicate that in at least 15 sectors of the economy.
He said that is what the country can do to be able to diversify Nigeria’s economy, create more jobs and then move from a poor to a rich economy.
He noted that just as the country has done in the cement, sugar and automotive sectors, government’s objective was to co-develop a holistic backward programme that would make Nigeria No. 1 in Africa and top 10 globally over time.
He said that the NIRP had been strategically developed and linked with sectors of the economy where the country currently had competitive and comparative advantage, such as mines and steel and agri-business, among others.
He said there was no doubt that industrialisation was central to national development, pointing out that as a country, Nigeria had undertaken several initiatives in the past to accelerate its industrial development.
However, the minister said what made NIRP different from previous initiatives was that it was the first industrialisation road map to be strategic, holistic and integrated.
In the past, he said, the country made the mistake of relying on exporting raw materials and in the process exported jobs, noting that this was what the industrial revolution plan was trying to change.
He promised to work together with all the stakeholders, including state governments, manufacturers and ministries, departments and agencies of the government to drive the implementation.
The Minister of Mines and Steel Development, Musa Sada, said there was the need for increased collaboration between the Ministry of Mines and Steel Development and that of Industry, Trade and Investment to utilise the nation’s abundant industrial minerals to boost industrialisation.
“Steel is expected to remain the world’s most engineering material for some time to come due to its versatility,” Mr. Sada said. “The annual steel production in Nigeria is estimated at about 3.5million tonnes, while about 17 million tonnes of steel and allied products are imported annually.
He said local steel production is only through 100 per cent melting of scrap steel, while the government wanted to see the iron and steel sector play a major role in the industrial development of our country.
In order to achieve this objective, he said government needed to partner the Ministry of Industry, Trade and Investment by keying into the NIRP to create the critical value chains that will drive sustainable industrial development.
Source:- premiumtimesng.com
Gold Price Falls From Two-Month High
Indian gold futures fell more than 0.5 percent on Thursday, retreating from two-month highs hit earlier in the week, weighed down by weak global markets, though a weaker rupee limited the downside.
At 1215 GMT, the most-active gold contract for February delivery on the Multi Commodity Exchange (MCX) was 0.75 percent lower at 28,838 rupees per 10 grams, falling from a high of 29,849 rupees hit earlier in the week, a level last seen on Nov. 20, 2013.
Silver contract for March delivery was 1.38 percent lower at 44,596 rupees per kg on the MCX.
The rupee, which traded weaker on Thursday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
However, premiums stayed steady at $80 an ounce on London prices, amid steady demand.
"There is not heavy demand as of now ... Gold is still available at a premium due to import restrictions," said Haresh Acharya, head of bullion desk, Parker Bullion.
Indian gold imports may have fallen 70 percent in the final quarter of 2013 from 255 tonnes in the year-ago period and are expected to be half the usual levels at 500-550 tonnes in 2014 if new import rules are maintained, a top trade body official said.
Source:- financialexpress.com
SAT directs public announcement as conversion of warrants increased voting rights of appellants by m
CL: Where on conversion of warrants, voting right of appellants in target-company increased from 50.23 per cent to 62.92 per cent, i.e., more than 5 per cent, in violation of Regulation 3(2) of Takeover Regulations, appellants were to be directed to make public announcement to acquire shares of target-company
No denial of excise registration to purchaser of premises due to pending excise dues of previous man
Central Excise : Recovery proceedings initiated against second subsequent purchaser of auctioned property, after 10 years from auction, in respect of pending excise dues of original owner of property, were barred, as they were initiated after unreasonable period
Matter remanded to decide reasonableness of AMP exp. incurred on brand promotion of AE as per ratio
IT/ILT: Where TPO made adjustment to assessee's ALP taking a view that AMP expenses incurred by assessee on brand promotion of its AE located abroad were excessive, matter was to be remanded back for quantification of AMP expenses in accordance with decision of Special Bench in case of LG Electronics India (P.) Ltd. v. Asstt. CIT [2013] 140 ITD 41/29 taxmann.com 300 (Delhi)
SC relied on ratio of Mitsubishi that ‘filing of return doesn’t attracts bar on advance ruling’; set
IT/ILT : SC relied on ratio of Mitsubishi that ‘filing of return doesn’t attracts bar on advance ruling’; sets aside two orders. The assessee, Sin Ocean Shipping ASA Norway, filed the instant SLP seeking to set-aside the orders passed by AAR [GTB invest ASA, In re [2012] 18 taxmann.com 262 (AAR- New Delhi)] and High Court [NETAPP B.V. v. AAR [2012] 24 taxmann.com 174 (Delhi)
India Considering 2% Cut In Gold Import Duty
India was considering pruning the gold import duty by 2% from the current rate of 10% in view of the demands from the jewellery industry and the increase in gold smuggling.
According to officials in the Finance Ministry, the case for a reduction of the import duty had been finalised, but a final decision would be taken closer to the end of current fiscal year on March 31, 2014, as stated by Finance Minister P Chidambaram.
However, the Ministry was yet to take a final view of the jewellery industry’s demand for quantitative easing of gold imports, the officials added.
The current quantitative restriction was 80:20 or merchant importers were mandatorily required to re-export 20% of each inward shipment of gold before being able to place an order for a fresh consignment.
In an interview with the local media, Chidambaram on Wednesday said that, while the higher import duty and quantitative restrictions were significant contributors in reining in the country's current account deficit (CAD), it had also triggered a spurt in gold smuggling, which he pegged at around 3 t per month.
The improvement in CAD was reflected in recent data released by the government which estimated the CAD during July to October 2013 at $5.2-billion, or 1.2% of the gross domestic product (GDP), compared to 6% of GDP during 2012.
However differences persisted between the government and the central bank, the Reserve Bank of India (RBI), on the prudency of easing gold import restrictions.
Commerce Minister Anand Sharma has made a strong plea for easing fiscal and quantitative restrictions in the interest of keeping the gems and jewellery industry competitive in the exports markets.
He said that while the government had by and large gone along with moves of the revenue department under the Finance Ministry and RBI on the issue, it was also the responsibility of the government to ensure the competitiveness of the labour-intensive and export-oriented gems and jewellery industry.
However, the deputy governor of the RBI, K C Chakrabarty, has cautioned that India could not afford to continue to pay foreign currency for importing gold, or to borrow money from banks to import gold, when the CAD continued to be negative.
Source:- miningweekly.com
SEZ unit can claim refund of ST paid on GTA services on production of GTA bills
Service Tax : Where SEZ unit availed goods transport agency's services for movement of goods within SEZ or from SEZ and bills showed that recipient of service was assessee located in SEZ, assessee could claim refund of service tax paid thereon
Mere sale of shares at low price won’t cast doubt on validity of such dealing, unless revenue proves
IT : Amount forfeited by assessee on cancellation of agreements of sale of its two manufacturing units in excess of that mentioned in agreements would be revenue receipt
India Tightens Restrictions On Raw Material Exports
The Indian government has imposed a 5 percent duty on exports of iron ore pellets in a move that will further clamp down on raw material exports and ensure iron availability for domestic steel producers.
Since December 2011, India has levied a 30 percent tax on exports of iron ore fines and lumps, and sought to curb mining exports from Karnataka and Goa states. These curbs are estimated to have cut India’s iron ore exports by around 85 percent (roughly 100 million tons) since their implementation.
Iron ore pellets, the subject of India’s new 5 percent duty, were previously exempt from these taxes due to negligible exports.
“However, in April-November 2013, exports of iron ore pellets have risen sharply, causing an apprehension about shortage of iron ore in the country,” India’s Ministry of Finance said in a statement on Monday. In recent months, the establishment of new processing units across India have driven this increase.
In past years, India exported between 2 and 3 million metric tons of iron ore pellets annually, which rose to between and 4 and 5 million metric tons in the current financial year.
In response to this surge, Indian steel producers lobbied last month for the government to implement a tariff on exports of iron ore pellets to safeguard domestic supply.
China, the largest importer of iron from India and the world, is likely to be most significantly impacted by the new tariff. Last year, Indian iron ore exports to China dropped 65 percent to 11.7 million tons last year according to Chinese customs data – primarily due to the new taxes introduced in 2011.
“This is a retrograde step, and one more blow to the industry,” Basant Poddar, Vice Chairman of the Federation of Indian Mineral Industries, said. “On one hand, they want us to go for more value addition, but on the other hand they are imposing more taxes.”
Until two years ago, India was the world’s third-largest iron-ore exporter. This year, however, India’s overall exports are estimated to be only 15 million tons combined with 67 million two years ago. Exports between 2009 and 2010 stood at 118 million tons. Revenue lost from this decrease is estimated to exceed US$17.5 billion in the past two years.
On Monday, the Chinese National Development and Reform Commission (NDRC) encouraged Chinese steelmakers to buy up stakes in global iron-ore assets, mines, mills, ports, railways and energy facilities in the interest of Chinese strategic security.
Currently, China imports roughly two-thirds of its iron ore, and some domestic projects have experienced delays due to a lack of supply in recent years.
“China’s iron-ore demand will still rise, its reliance on imports won’t change, and the degree of monopoly in global iron-ore resources will still keep increasing,” the NDRC said.
Despite India’s new duty on iron ore pellets, sagging Chinese iron ore demand around the Lunar New Year is expected to counterbalance the tax. Many economists additionally point to increasing stockpiles of iron ore domestically as steel demand grows more slowly along with China’s economy.
Source:- india-briefing.com
Microsoft-Nokia deal won't have adverse effect on competitions in India; CCI nods to proposed combin
Competition Act : Proposed combination relating to acquisition by Microsoft entire Device & Service (D&S) business of Nokia did not have appreciable adverse effect on competition in India and, therefore, same was to be approved
Sum incurred to advertise product of foreign holding co. in Indian sub-continent held as an allowabl
IT : Where assessee engaged in rendering software implementation support services to its customers located abroad, claimed exemption under section 10A, in view of fact that assessee could not prove nature of services rendered for which it received foreign exchange, matter was to be remanded back to Assessing Officer for disposal afresh
IRDA issues guidelines for filing of products under CSC distribution model
INSURANCE : Guidelines - Process to be Followed for Filing of Life Products Under CSC Distribution Model
HC treats revised return of income as application for condonation of delay; allows legitimate tax re
IT : Revised return of income to be considered as application for condonation which consequently results in refund of legitimate taxes
RBI hikes investment cap for Govt. debt securities to USD 10 billion for long-term NR investors
FEMA/ILT : Foreign Investment in India by Sebi Registered Long Term Investors in Government Dated Securities
Mere allegation of fraud on assessee to invoke extended period was not sufficient cause to levy pena
Cenvat Credit : Allegation in show-cause notice as to contravention of certain rules with intention to evade payment of tax made for specific purpose of invoking extended period cannot suffice for levy of penalty where no allegation of that kind is raised in para relating to levy of penalty
Brought forward losses pertaining to block period to be set off from undisclosed income assessed und
IT : In computation of undisclosed income of block assessment, benefit for brought forward losses pertaining to house property cannot be disallowed if same is related to block period
Attachment order barring sale of asset is assessee-specific; can’t cover assets owned by others in s
IT : Attachment order was to be limited to plot owner by person against whom order was passed and not extended to plots owned by others in residential area
Peak credit method to compute undisclosed income not contrary to IT Act; coded entries don’t mean un
IT : Application of peak credit concept for quantifying undisclosed income, is not contrary to provision of Act
Ignorance of amended law can be an excuse; concealment penalty unjustified if relief claimed wrongly
IT : Where assessee, a co-operative society engaged in business of banking, claimed deduction under section 80P(2) and Assessing Officer disallowed claim of deduction and also levied penalty under section 271(1)(c) upon assessee on plea that it had intentionally claimed inadmissible deduction to reduce taxable income, since claim for deduction had been a matter of bona fide mistake, levy of penalty was not justified
Gujarat HC orders winding up as company lost its financial substratum and became commercially insolv
CL: Where company had become commercially insolvent and had failed to pay loan advanced to it by petitioner, company was to be wound up
Department can't fix redemption fine without first determining quantum of unaccounted stock, rules D
Excise & Customs : While determining redemption fine, only unaccounted stock can be taken into consideration and, therefore, redemption fine cannot be imposed without considering books of account produced and without determining quantum of production pertaining to duly accounted purchases
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