Additions for undisclosed income due to variation in stock is question of fact; no interference requ

IT: Additions for undisclosed income due to variation in stock is question of fact; no interference required: HC

No penalty for filing of unsigned auditor's report if mistake was subsequently rectified by assessee

IT : Filing of unsigned report of auditor by mistake was merely an irregularity and where it was duly rectified on being pointed out, no case for levying penalty under section 271B was made out

Consideration of appeal on merits tantamounted to condonation of delay even if no separate order was

Service Tax : Though appellate authority cannot consider belated appeal on merits without, first, condoning delay, however, if appeal is considered on merits, authority should appropriately be considered to have entertained appeal by virtually condoning delay

No denial of sec. 10(23C) relief to assessee if exemption certificate was delayed due to revenue's f

IT: Where exemption under section 10(23C)(iv) was available to assessee in previous and subsequent years, however, during assessment years under consideration certificate was not obtained due to technical reason or delay on part of revenue, exemption could not be denied

Ministry does away with max ceiling on sale of export rejects of un-mutilated clothing by SEZ to DTA

SEZ INSTRUCTION : Policy to Regulate Functioning of Worn and used Clothing units in SEZs - Amendment in Instruction, Dated 17-9-2013

Tusker Eats Plastic Waste Thrown By Pilgrims, Dies

A 40-year-old female elephant has died after consuming plastic waste dumped by Sabarimala pilgrims.Forest officials found the carcass at Valiyanavattam along the path leading to the pilgrim centre in Pathanamthitta district.

Veterinary surgeon Saseendra Dev, who conducted the autopsy, said the animal had consumed 2 kg of food packaging waste, including plastic bags, biscuit covers and aluminum foils.

“The waste should have been discharged with dung. But large quantity of the non-degradable waste got stuck in the bowels, leading to intestine obstruction. Its colon was ruptured due to constipation. We found the carcass Saturday, a week after the elephant died,’’ he said.

The two-month-long annual Sabarimala pilgrimage ended in the second week of January. Lakhs of pilgrims, particularly from south India, visit the hill shrine. The government has banned use of plastic bags in the region but the ban has never been effective.

P S Easa, head of wildlife biology division at Kerala Forest Research Institute, said food packaging waste posed a serious threat to elephants and other animals.

“In the past, we have noticed plastic waste in the dung of elephants and deer,” he said. “Many small animals have died in the past but such incidents generally go unreported,” he added.

Easa said the Sabarimala forest region had enough vegetation for elephants. “But the salty content in packaging waste lures them to garbage dumps. Salt is a major attraction that makes elephants consume packaging waste. Some packets also have leftover food,” he said, demanding strict enforcement of the plastic ban in the region.

Source:- indianexpress.com

4,000 Orange Fruit Containers Exported

The former chairman and spokesman of All Pakistan Fruit & Vegetable Exporters, Importers and Merchant Association (PFVA) said on Monday that the export of orange fruit was on full swing to the global markets as 4,000 containers worth USD $88.90 million had been exported, while possibility of export of potato to Russia during current week had also been brightened.

Wahid further said that the export volume of orange fruit to Russia had been restricted to 30% as compared to last year and the exporters were facing huge financial losses despite availability of good quality of Moroccan's oranges. The Russian market has been flooded with Pakistani oranges amid low price offered by this market. On other hand, a ban on import by Iran has further mutilated problems of the exporters.

Sharing good news, he stated that due to an increased demand of Pakistani potato in Gulf, Sri Lanka, Far-East, the export of potato had now reached 65,000 tons and out of the total production of 50 million ton, an additional three million ton was expected to be exported.

Chance of withdrawal of ban by Russian Quarantine on import of Pakistani potato was quite fair and it was strongly anticipated that the export of potato to Russia would commence in the current week, he further added.

The price of potato in local market is thrice of last year since it is being exported via land to Russia through Afghanistan, Iran and Iraq, and if price of potato is reduced locally, then 50,000 tons are expected to be exported to Russia, he further stated.Despite low price of potato from India & Bangladesh, we are still striving hard to achieve export target of potato this year, Wahid said.

Source:- brecorder.com

Aptma Chairman Urges Government To Ensure Level Playing Field

Islamabad—Muhammad Yasin Siddik, Chairman, All Pakistan Textile Mills Association (APTMA) has advised the Federal Government that the decision to relax trading links with India should have to be in stages and only opening up sectors in the first stage where Pakistani businesses and industries do not feel threatened on a large scale.

In a statement issued to the press, Mr. Yasin Siddik said that the importance of regional trade can not be denied but the decision to liberalize the trade will need to be made keeping in view the developmental stage in different industries and the level playing field should be given due importance while granting MFN status to India.

Chairman APTMA further said that the higher cost of production in a relatively smaller economy in comparison to India will make the Pakistani Industries vulnerable to tough competition and will adversely affect our industries which are not so competitive in terms of prices. He further said that in order to provide a level playing field the duty structure between the two countries should be equal and on reciprocal basis without any discrimination and Non-Tariff Barriers hurting exports to India be removed immediately.

He pointed out that there is no parity between Pakistan and India in the rates of customs duties of similar products, e.g. in case of cotton yarn Government of Pakistan has allowed duty free import of cotton yarn vide SRO 15(I)/2010 dated 6th January 2010 whereas there is 23% total import duty including 10% basic custom duty, 6% to 12% Capital Value Duty (CVD), 3% Custom Education Cess and 4% Special CVD on import of cotton yarn in India. Similarly export of cotton fabrics to India attracts over all 25% whereas there is only 15% custom duty in Pakistan.

Yasin Siddik urged the Government that before entering into a new trading arrangement with India, having long-term implications, the duty structure between the two countries must be equal and on reciprocal basis without any discrimination and Non-Tariff Barriers hurting exports to India in the context of textiles is secured.

He further said that in order to give Pakistan side a fair chance for enhancing exports and also allowing the Indian side to enter in export to Pakistan a level playing field shall be provided to Pakistani Industry as otherwise we will open flood gates for Indian exports while Pakistan side will not be benefiting from this new arrangements.

Source:- pakobserver.net

No penalty for belated filing of tax audit report as it was caused due to delay in completion of sta

IT: Late completion of statutory audit by auditors and consequent late receiving of tax audit report constituted reasonable cause for non-compliance with provisions of section 44AB

Acquiring built up area in lieu of transfer of development rights satisfies conditions for claiming

IT : Where assessee was representative of an AOP, which had been constituted for purpose of receiving income from rent and interest on fixed deposits, and members of AOP in terms of a development agreement sold development rights in a property to one 'S' and received certain super built up area in kind as part consideration for sale of property, assessee was entitled for deduction under section 54/54F

Iron Ore Pellet Producers Threaten To Shut Ops If Export Duty Not Rolled Back

Iron ore pellet producers have told the government that they may be compelled to shut operations if the government does not roll back the 5 per cent duty imposed on exports of iron ore pellets. The shut down would render futile nearly Rs 35,000 crore of investment.

The government had imposing a 5 per cent export duty on iron ore last week, which the companies say has dealt a body blow to their investments and capacity expansion plans.

While recommending the duty, the steel ministry had argued that iron ore was being exported in the garb of pellets, which virtually amounted to exporting the scarce mineral. The finance ministry has imposed the duty despite objections raised by commerce and industry ministry. In a letter dated January 7, the commerce ministry wrote to revenue secretary Sumit Bose saying that it does not support export duty because pellet is a value-added product and it has been the ministry’s stance that there should be no export duty on the same.

However, the commerce ministry said that out of an installed capacity of over 75 million tonne, barely 25 MT is domestically consumed. It says the lack of low domestic demand has, in fact, compelled producers to cut down their capacity utilisation to less than 50 per cent.

Leading pellet producers have told finance ministry that while most plants would find it unviable to operate, bigger players may have to rethink on expanding the capacities unless the government addresses their concerns.

“The government hastily announced the 5 per cent export duty on pellets, despite the fact entrepreneurs have invested thousands of crores of rupees to create capacities and expand their operations. This action deepens investor’s fears of a stable policy. Flip-flop policies can turn investments sour overnight,” Essar Steel executive vice chairman Firdose Vandrevala told The Indian Express.

State-run Kudremukh Iron Ore chairman Malay Chatterjee said his pellet project in Karnataka has a capacity of 3.5 MT and is a 100 per cent export oriented unit, which had recently commenced overseas sale of pellets. “For my company the situation is even more worrisome. My unit can only survive on exports. The duty will hugely impact commercial viability of our operations,” he said. Chatterjee said that over 1,000 employees could be rendered jobless.

JSPL Group CEO Ravi Uppal said the move exhibits lack of consistency in government policy. “It is a decision without any rationale, which would do colossal damage to the pellet industry, which have invested over Rs 30,000 crore during the last three years.”

UK-based Stemcor’s India subsidiary Brahmani River Pellets Ltd MD ND Rao described the 5 per cent export duty as “a regressive step” and a hurdle towards investments in clean technology and natural resource conservation.

Vandrevala said little over 1 million ton pellets have been exported abroad till January this fiscal against the installed capacity of 75 MT. “I fail to understand what motivated the steel ministry to recommend the duty and how much revenue would the government gain in imposing it when exports are abysmally low.”

Senior officials of the Pellet Manufacturers Association of India said that the move to levy the duty is suspect and would virtually close down the industry.

Source:- indianexpress.com

India Ready To Export Power From Amritsar To Lahore

While India faces energy shortage, its state of Punjab will soon be surplus, technically ready to export electricity from Amritsar to Lahore.“This can increase if more infrastructure is added. There will be third party assurance and presently the method of payment and trying to involve the private sector are being looked into,” says Manish Mohan, Director Confederation of Indian Industry, who says he has also worked with Aman Ki Asha.

However, one view heard everywhere is why Nawaz Sharif suddenly had cold feet after initially he was so enthusiastic about importing Indian electricity. Fingers point in a familiar direction as in all matters concerning India. Initially, 259MW can be provided to Lahore.

Mohan recalls a meeting set up initially for 15 minutes with Sharif which stretched to over an hour. “That Indo-Pak relationship is complicated is an understatement. We have not been able to create the right chemistry,” he adds.

Meanwhile, Nisha Taneja, who heads the Indian Council for Research on Economic Relations, says that many in Pakistan are completely unaware of the items they can freely trade with India. “At times we found out on our visits to Pakistan that they are clueless of the number of items they can export,” she said.

But, she added, there is less bureaucratic constraints in Pakistan. The project, she heads on Pakistan, is the biggest in India. She admitted that there are factors on both sides that are trying to slow down the process. “If everything was open and there was no impediment, both countries could trade including in oil, a sum of two billion annually with the balance of trade in India’s favour,” she added.

Source:- thenews.com.pk

Call For Ban On Rubber Imports

Given the declining prices of natural rubber in the recent period, the Indian Rubber Growers Association has demanded the suspension of rubber imports through all channels for a period of one year. It has also asked the authorities concerned to redefine the policy on import-related exports.

Siby J. Monippally, President of the association, pointed out that importers, who import through duty free channel, delay their export commitments unreasonably to an extent of three years, which was adversely affecting the balance in the industry.

The association has also submitted a memorandum to the visiting Union Defence Minister A.K. Antony in this regard.

It has been pointed out in the representation that 2.70 lakh tonnes of rubber were imported till now, where 65 per cent was imported through duty-free channel (duty exemption entitlement certificate). It is pertinent to note that the deficit of natural rubber in India is only 70,000 tonnes.

If this trend continues, three lakh tonnes of rubber are expected to reach India through import. This import is directed towards artificially creating supply in the market. Therefore, it is not in the interest of rubber industry and farmers.The memorandum also demanded that the standard input and output norms for duty-free import should be revisited.

Source:- thehindubusinessline.com

Govt Cuts Import Tariff Value Of Gold, Silver

Government on Monday slashed the import tariff value on gold and silver to USD 404 per ten grams and USD 635 per kg, respectively, taking into account the volatility in the global prices.

Import tariff value is the base price at which customs duty is determined to prevent under-invoicing. The tariff value is revised on a fortnightly basis after analysing the global price trend.

Till Sunday, the tariff value on imported gold was at USD 407 per ten grams, while on silver it stood at USD 663 per kg.

The notification in this regard has been issued by the Central Board of Excise and Customs (CBEC), an official release said on Monday.

Besides precious metals, the tariff value on imported brass scrap has been cut to USD 3,959 per tonne from USD 3,995 per tonne, while those on crude soyabean oil has been reduced to USD 917 per tonne from USD 944.

Similarly, the tariff value on imported RBD palmolein has been reduced to USD 898 per tonne from USD 902, while that on imported crude palm oil has been slashed to USD 857 per tonne from USD 877.

In London, gold prices on Monday fell by 0.33 per cent to USD 1,241.80 per ounce, while silver dropped by 0.23 to USD 19.12 per ounce. Domestic gold and silver prices remained down following weak global price trend.

Gold is the second largest import item for India after petroleum. However, gold imports are expected to decline this year as government has taken several measures to curb shipments to address the high current account deficit.

According to the jewellers body, total gold imports may decline to below 500 tonnes this fiscal due to these restrictions, from 845 tonnes in the last fiscal.

Source:- timesofindia.indiatimes.com

Rupee Logs 1St Rise In 3 Days, Up 12 Paise To 62.56 Vs Dollar

The rupee on Monday gained for the first time in three days and closed up 12 paise to 62.56 against the dollar on fag-end sales of the U.S. currency.

After dropping 27 paise in the previous two sessions, the rupee’s strength was also linked to anticipation of spectrum auction inflows and a weak American currency overseas.

At the Interbank Foreign Exchange (Forex) market, the domestic currency resumed slightly lower at 62.70 a dollar from last weekend’s close of 62.68.

It later fell further to a low of 62.79 on weak local stocks, worries over recent cut in U.S. stimulus and lacklustre Chinese data. However, later the rupee bounced back to settle at day’s high of 62.56, a rise of 12 paise or 0.19 per cent.

The dollar index was down 0.14 per cent against a basket of six major currencies when local forex markets ended.

“The initial weakness was due to poor China data and strength in US dollar index. Fed’s decision of tapering its asset purchase programme every month is seen getting reflected in emerging market currencies,” said Abhishek Goenka, Founder & CEO, India Forex Advisors.Data showing India’s manufacturing sector in January expanded at the strongest pace in 10 months, helped sentiment.

Pramit Brahmbhatt, CEO, Alpari Financial Services, (India) observed that rupee’s rise was aided by the dollar index trading weak as investor focus on emerging-markets fears faded. “The trading range for the USD/INR pair is expected to be within 62.00 to 63.50,” he said.The BSE Sensex slipped about 305 points to end at its lowest level in over 11 weeks.

“USD-INR witnessed some flat to negative movement with weakness seen in dollar internationally along with improved Indian manufacturing PMI data. Equity markets witnessed sharp downside movement. Indian benchmark yields witnessed some lower movement during the day. Dollar Index resistance is seen at 81.40,” said a note from Admisi Forex India.

As per provisional data, FIIs sold stocks worth Rs 735 crore on Monday.Meanwhile, forward dollar premiums remained weak on persistent payments by exporters.The benchmark six-month forward dollar premium payable in July softened to 250.5-252.5 paise from 252-254 paise last Friday.Far forward contracts maturing in January eased to 493-495 paise from 494-496 paise.The RBI fixed the reference rate for the dollar at 62.6891 and for the euro at 84.5780.The rupee rebounded to 102.27 against the pound from last close of 103.14. It improved to 84.51 per euro from 84.87.It, however, declined further to 61.27 per 100 Japanese yen from 61.27.

Source:- thehindu.com

Guarantee commission deemed at ALP as it was within range of prevailing bank rate for guarantee comm

IT/ILT: Rate of 0.5 per cent guarantee fee/commission would be at arm's length where rates of guarantee commission charged by various banks were found to be in range of 0.15 per cent to 3 per cent

Non-delivery of notice by security agency to assessee wasn't a valid reason to condone delay in fili

Central Excise : Receipt of order by registered post with acknowledgement due amounts to 'communication of order'; ground that security agency hired by assessee did not hand over said post to assessee is not a valid ground to rebut presumption of said communication and accordingly, delay caused thereby cannot be condoned

SAT upholds penalty as appellant was trading within group to create artificial volumes of illiquid s

SEBI : Where appellants had traded amongst themselves in a synchronized manner within group at incremental prices in respect of an illiquid scrip, inference drawn by Board that alleged trades were carried out with a view to create artificial volume was justified

Export rebate was available even if goods were not directly exported from factory, rules HC

Excise & Customs : Even if assessee has not exported duty-paid goods 'directly' from his factory/warehouse, export rebate may be allowed subject to documentary evidence proving direct co-relation between duty-paid goods manufactured/cleared by assessee and those exported by him

Receipts from sale of goodwill of profession are capital receipts; not chargeable to tax

IT: Sale of goodwill of profession would not as such come within ambit of provisions of section 55(2)(a); same is not taxable as LTCG

Director General has specifically been denied power to investigate suo-motu under the Companies Act,

Competition Law: Though MRTP Act, 1969 empowered Director General to exercise suo motu power of investigation, said power has been expressly denied to him under Competition Act

Land located beyond 8 km from village panchayat isn't a capital asset; profit derived from its sales

IT : Where assessee claimed that during previous year he in terms of an agreement entered with a promoter of land had sold his agricultural land and said land was situated at a distance of more than eight kilometres from nearest panchayat, profit derived on sale of land was not liable to capital gain tax, because land was not a capital asset by virtue of section 2(14)(iii)

Prior to 19-04-2006, reimbursable expenses were not includible in value of services

Service Tax : For period prior to introduction of Service Tax Valuation Rules, 2006 with effect from 19-4-2006, in case of a Clearing and Forwarding Agent, only remuneration and commission paid to C&F Agent by principal is chargeable to Service Tax and not expenses reimbursed by service recipient

HC remands case as appeal was disposed off in name of dead assessee

IT: Since order was passed by Commissioner (Appeals) in name of dead person, order of Commissioner (Appeals) needed readjudication

Hiring of vehicle on hourly basis shifts TDS obligations from sec. 194C to sec. 194-I front yard; Ke

IT : Where assessee entered into an agreement with a contractor for hiring of vehicles and made use of vehicles and equipment and paid hire charges on basis of number of hours of use, section 194-I, and not section 194C, would be attracted

Delay in filing of appeal not condonable on advocate's negligence if assessee remained silent for ye

IT : Where delay in filing appeal was due to negligence of advocate and also negligence of assessee who did not enquire about filing of appeal for more than two and half years, application for condonation of delay was to be rejected

Exemption granted on non-resident deposits from maintenance of CRR and SLR requirements withdrawn

BANKING : Section 42(1) of The Reserve Bank of India Act, 1934 Read With Section 24 of The Banking Regulation Act, 1949 - FCNR(B)/NRE Deposits - Exemption From Maintenance of CRR/SLR and Exclusion From ANBC for Priority Sector Lending

In view of sec. 38A, omission of a rule doesn't affect already accrued obligation

Excise & Customs: Though section 38A in Central Excise Act refers only to 'amendment or repeal or supersession or rescission', even omission or otherwise of a rule would not affect any obligation or liability that had already accrued or incurred

No additions under sec. 68 on mere grounds that lenders dealt with persons providing accommodation e

IT : Where in respect of loan transaction, it was apparent that amount was advanced through account payee cheques and lender had got sufficient balance in their bank account before issuing cheques, said transaction was to be regarded as genuine and, thus, loan amount could not be added to assessee's income under section 68 merely on ground that lenders were related to a person who was involved in providing accommodation entries

Service clause barring employees from competing with ex-employer can't be held as abuse of dominance

CL : A clause in service contract restricting an employee from taking employment with competitors, after he leaves employment, for a particular period, raises no competition issue