IT : In pursuance of search proceedings initiated against a company in which assessee was an employee, block assessment proceedings, if any, were to be initiated against assessee, said proceedings could be initiated only under section 158BD and not under section 158BC
Monday 24 February 2014
No question of law involved in whether sum incurred on water proofing and pest control is current re
IT : Where Tribunal having noted that hotel building was severely affected by heavy damage and it also needed pest control, water proofing etc., allowed assessee's claim for repairs, said finding being a finding of fact, no substantial question of law arose thereupon
Excise, Service Tax Collections Cross Rs 10K Cr In State
Central Excise (Ahmedabad zone) has collected revenue more than Rs 10,000 crore in the period April 2013 to January 2014. The zone covers north, central and Saurashtra regions of Gujarat.
The zone collected revenue of Rs 6,559 crore in excise duty and Rs 3,941 crore in service tax during the current fiscal year. In 2012-13, the excise duty collections were Rs 8,535.84 crore while the service tax collections stood at Rs 4,691.80 crore.
For the current fiscal ending March 2014, the central excise department has kept the target of Rs 9,400 crore for excise duty collection and Rs 6,386 crore for service tax.
The department celebrated 'Central Excise Day' on Monday with a cultural programme at Tagore Hall. IIM-A director Ashish Nanda was the chief guest on the occasion. Chief commissioner, central excise, Ahmedabad zone, R K Singh said that the department had to find deviant behaviour in trade without being intrusive.
Singh also said that the department is facing staff shortage and is in the process of cadre restructuring. Top performing officers from different zones of the department were awarded certificates of appreciation by Nanda and Singh during the ceremony.
Source:- indiatimes.com
No debate over probate granted by Court for transmission of shares jointly held under sec. 59 of Com
CL : No debate over Probate granted by court for transmission of jointly held shares u/s 59 of the Companies Act, 2013
HC sets aside best judgment assessment as it was based on assumption of sales made during a particul
CST & VAT : Where best judgment assessment was based on interpolations/ assumptions as per sales made during a particular period of a particular day, such assessment was liable to be set aside
Exp. and depreciation claim pertaining to inoperative unit held allowable by Kolkata ITAT
IT : Where director of assessee-company on an invitation had gone on foreign tour in capacity of President of India Chemical Council and he also explored prospects of export of assessee's products abroad, expenditure incurred on this tour was allowable as business expenditure
Coal Stocks At Indian Ports Rise 5% On Week To 7.9 Mil Mt: Interocean
Stocks of imported coal at 16 major ports in India rose 5% week on week to 7.9 million mt as of February 21, according to data released late Friday by Indian shipbroker Interocean Group.
Of the total, thermal coal accounted for 5 million mt, down 7% week on week, while coking coal stocks jumped 38% to 2.9 million mt, the data showed.
Paradip port on India's east coast had the highest level of coal stocks as of February 21, at around 1.6 million mt, up 6.6% from the previous week, the data showed.
Krishnapatnam port, also on the east coast, had the highest level of coking coal stocks, at 1.1 million mt, up from 241,218 mt a week ago.
The 16 ports surveyed by Interocean were Mangalore, Tuticorin, Kakinada, Paradip, Kandla, Gangavaram, Vizag, Krishnapatnam, Muldwarka, Bhavnagar, Pipavav, Goa, Dahej, Magdalla, Hazira and Haldia.
Source:- platts.com
Why Corn Rallied Last Week
Corn (industrial maize) was one of the top five gainers last week, rising 4.26 per cent. Though the coarse grain has gained 7.43 in the past month, it has shed 37 per cent in the last 12 months.
The decline to multi-year lows since June last year has been mainly on the heels of estimates of a record global production during the current season to August.
From trying to keep its head above $4 a bushel during November-December, corn futures are currently steady above $4.50. Prices had run to a record $8.49 a year-and-a-half ago. On Monday, corn futures maturing for delivery on the Chicago Board of Trade pared some of their gains to rule at $4.55.
According to the US Department of Agriculture , global production is estimated at 966 million tonnes (mt) against 862 mt last season. Though consumption is seen rising by 0.8 mt to a record 943 mt, carryover stocks will be higher than last year at 157 mt (133 mt).
Why should prices rally then? There are a couple of reasons for corn’s current rally that is seen unsustainable. Corn prices have been rising in the last few weeks primarily due to cold weather affecting shipments in the US. Most of corn for exports is moved through barges on river to the nearest port. The weather has affected the movement. On the other hand, once weather clears up rivers will be flooded again posing a hurdle in transportation. Corn production in Argentina, a major exporter, is projected lower this year at 23.5 mt against 27 mt last year. And corn yield in Brazil is seen hit by the drought prevailing there. The unrest in Ukraine leading to fears of delay in shipments has also aided the bullish trend.
Changing preferences
Besides these developments, there are other reasons too. Some countries have found the lower corn price a boon to change their feed preferences. For example, Europe has begun exporting more wheat and to meet feed demand, it is importing more corn.
South Korea is buying more corn and less wheat for its feed requirement. Mexico, Vietnam, Saudi Arabica and Chile all have gone for higher imports of corn in view of lower prices. Though fund managers, hedge funds and investors were expecting fears of lower plantings to push up corn prices, things are not panning out exactly the same way.
USDA projections
During the weekend, the USDA pegged corn plantings at 92 million acres, lower than initial market expectations of 93.5 million acres. But the lower-than-expected projection of plantings has been offset by estimates of a higher yield. Besides, 92 million acres is the fourth largest in the last six decades.
Corn yields this year may increase 4.1 per cent to help production rise to a record 13.985 billion bushels. That is likely to leave a carryover stock of 2.111 billion bushels (each of 25.4 kg) in the US at the end of the next season (August 31, 2015).
This means, the average price that a corn farmer will earn will drop to $3.90 a bushel or $162.5 a tonne against $4.50 ($177a tonne) projected for this year, according to the USDA. This obviously means that corn’s rally is temporary and prices could come under pressure again.
Indian scenario
In the Indian scenario, production of maize is estimated at 21.06 mt this season to June against 21.76 mt last season. Exports are expected to be lower at three mt, though domestic use may increase on higher demand from the poultry sector. Prices are likely to rule below the minimum support level of ?1,310 a quintal.
On the National Commodities and Derivatives Exchange, maize May contracts were down at ?1,159 a quintal. Spot prices at Davengere, an important growing centre, are ruling at ?1,260 a quintal.
Source:- thehindubusinessline.com
India’S Rice, Wheat Exports To Reach 18M Tonnes
India is likely to export about 18 million tonnes of rice and wheat in 2013/14, the government’s adviser on farm prices said, as the world’s second-biggest producer of these grains looks for ways to handle another record crop.
Ashok Gulati also suggested India should release 15-20m tonnes of the grains for open market sales to cut massive mounds of stocks and help ease food inflation.
India, the world’s biggest rice and wheat producer after China, exported 22m tonnes of the grains in the last fiscal year to March 31, 2013 after New Delhi lifted a four-year-old ban on overseas shipments of the staples in late 2011.
“Exports of 2012/13 and likely exports this year mean 40m tonnes of shipments. You look at whatever historical data you have, India has never ever done that,” said Gulati, chairman of the Commission on Agricultural Costs and Prices.
Gulati has advocated regular exports of rice and wheat from India. Rising rice exports helped India replace Thailand as the world’s top rice exporter and wheat shipments picked up at the expense of rival suppliers Russia and Ukraine.
Unlike wheat, India does not export rice from government warehouses but shipments totalled about 10m tonnes in 2012/13 and Gulati said they may be 11m tonnes this year.
Global wheat prices fell 25.6 per cent to $6.05 a bushel in 2013 due to oversupply, with benchmark Chicago futures still hovering around that level.
Global rice supplies are seeing a sharp increase as the embattled government of Thailand rushes to liquidate its stockpiles in order to pay farmers and avoid further protests.
Benchmark Thai rice prices fell as much as 15pc last week.
Despite its export push, India sits on huge stocks of grains, thanks to bumper harvests since 2007. It took steps to boost production after unfavourable weather conditions hit the2006 wheat harvest, forcing India to import large quantities from Australia at sky-high prices.
Stocks at government warehouses are still 2.25 times more than targets and lack of storage means much rots away even though India tries to provide cheap food to about 800m.
“We have been recommending to the government to immediately liquidate 15-20m tonnes of rice and wheat. Holding on to such high stocks is unnecessary,” said Gulati, who is about to leave office after a nearly three-year term as the adviser.
The government buys rice and wheat from local farmers at a fixed price which is raised every year to encourage production, build stocks to supply subsidised food and meet any emergency needs such as a sudden spike in prices.
Hefty production and higher purchases by the government inflate the subsidy bill, which the government has pegged at1.15 trillion rupees ($18.53 billion). Food Minister K.V.
Thomas has said the subsidy could touch 1.3tr rupees, a major worry for the government as it tries to rein in public finances.
Stocks are going to swell further as India’s harvest from the current crop year to June 2014 is forecast to be a record 263.2m tonnes of grains.
Despite rising production, local prices of grains have jumped because government purchases leave only a small surplus in the market.
Domestic prices of rice and wheat combined rose 11.42pc in January from a year ago, helping to push up food inflation to 9.90pc, government data showed.
Source:- dawn.com
Decommoditisation Of Steel To Underpin Success
The Indian steel market cannot but remain flat, as growth continues to elude the commodity's principal consumption points such as construction, automobiles and machinery-building. Braving resistance from buyers, steel makers raised prices by Rs 1,000-1,200 a tonne in the past three months, across long and flat products, to defray cost rises.
In the current environment, resistance to price revision is understandable. In the first three quarters of this financial year, demand for steel increased a piffling 0.5 per cent to 53.789 million tonnes (mt). Where will steel prices stand in the coming months? Steel Authority of India Ltd Chairman Chandra Shekhar Verma says, "Prices appear to have stabilised at current levels. Customarily, as the country goes into an election mode, it sees a slowdown in government sector spending. Delays in the launch of infrastructure projects and the general lull in investment should be over once a new government is in place in a few months. At this stage, I would venture to say the worst appears to be over for the steel sector."
The economy's growth, as well as raw material prices, is the principal determinant of steel prices. Globally, high idle capacity is not allowing steelmakers to post prices that give them decent margins.
Through the past few years, leading steelmakers, including Tata Steel, SAIL and JSW, are investing heavily to manufacture auto-grade flat and long steel, in an endorsement of global belief that India and China are the last two bastions of the automobile sector's growth. Wasn't that belief somewhat weakened in the wake of sales in Indian falling 6.7 per cent to 1.9 million cars in 2012-13, and 5.2 per cent to 1.45 million units between April and January 2013-14? In China, where the economy is slowing and anti-pollution and austerity campaigns gaining ground, deliveries of passenger vehicles are estimated to rise 10 per cent this year, against 14 per cent in 2013. An official of the Society of Indian Automobile Manufacturers says, "We have to wait for a new government before any demand revival."
Verma says the decelerating car sales are a "blip. Lowering of excise duty on cars of all sizes and SUVs (sports utility vehicles) in the interim Budget is what the automobile industry needed for demand improvement. Similarly, duty relief will give a push to sales of white goods. All this should result in automobile and white goods manufacturers requisitioning larger volumes of steel. Hopefully, the new government will stay the course laid down in the interim Budget".
In recent periods, large investments in flat steel products, particularly Tata Steel's investment in a three-mt project at Jamshedpur, will be justified once demand in the automobile and white goods market rebounds. But how did companies such as Tata Steel (for its Indian operations) and SAIL manage to record good results in the past two consecutive quarters of 2013-14, overcoming the challenges of an extended heavy monsoon and weak economic conditions? In fact, their working has been ahead of the median production and profit forecasts of sector experts. Incidentally, both the groups are engaged in ramping up capacity. They are, therefore, under increasing pressure to push more material into the market, amid a subdued demand environment.
"Despite a flat market, SAIL deliveries of finished steel rose seven per cent to 2.94 mt in the December quarter on a year-on- year basis. Production of saleable steel rose four per cent to 3.17 mt, partly aided by new capacity progressively coming on stream from our simultaneous modernisation and expansion programme. Defying market blues, SAIL recorded impressive growth in turnover and profit, thanks to the best quarterly production of 1.35 mt of value-added steel," says Verma. In an oversupplied market, the success of a producer will be underpinned by "decommoditisation of steel and branding of products".
At the same time, capacity expansion should be seen as an opportunity to induct new technologies, allowing production in an energy-efficient, environment-friendly and cost-efficient manner. This is being demonstrated at Tata Steel's Jamshedpur complex, where new flat steel capacity of three mt, based on an integrated thin slab caster and a rolling mill using compact strip processing technology, was put to use last year. The phase-wise commissioning of flat capacity at the new mill will boost Tata Steel's turnover and profits quarter-on-quarter.
Verma claims for "SAIL, the best will start happening in the next two-three years. That is the time our Rs 70,000-crore investment in expansion and modernisation will fully mature". What holds good for SAIL will also be the case with Tata Steel, which will start producing steel at its greenfield plant at Kalinganagar in Odisha in the second half of 2014-15. The three-mt first phase of the six-mt plant will further reinforce Tata Steel's position in the flat steel market by "augmenting the product range that will take care of changing customer needs". Unlike Tata Steel, which must acquire land to build new steel plants, SAIL has about 21,000 acres of surplus land at its five integrated mill sites for an additional 26 mt of hot metal in the next round of its $26-billion expansion.
Source:- business-standard.com
Cotton Prices Under Pressure
Cotton prices came under pressure on Monday where buyers were conspicuous by their absence and underlying sentiment also remained easy.
The dwindling demand for cotton yarn in domestic market is causing cash flow problem for entire textile industry and it was also adversely affecting exports, brokers said.
They said the market is lacking trading interest as spinners were generally reluctant to enter into big deals. The shortage of quality lint is yet another factor which is restricting trading activity, they added.
Trade circles said that India is giving 5 per cent rebate on cotton yarn and fabric exports to Pakistan but has imposed 26 per cent duty on imports from Pakistan. This is encouraging dumping of both the commodities from Indian exporters.
The much-expected high demand for cotton yarn from China also could not materialise and spinners are presently faced with high inventory problem, brokers maintained. Besides, very little cotton stocks are left in the country as the current season is near fag end.
The Karachi Cotton Association (KCA) reduced its spot rates by Rs50 to Rs6,900 per maund and trading activity on ready counter was extremely slow.
The following deals were reported to have transpired on ready counter: 200 bales, station Bahawalnagar, at Rs6,875; 400 bales, Bahawalnagar, at Rs6,900, 1,500 bales, Haroonabad, at Rs6,900 and 1,500 bales, Faqirwali, at Rs6,900.
Source:- dawn.com
Sum paid on production of TV serial would attract TDS under sec. 194C instead of under sec. 194J
IT : Provisions of section 194C which specifically cover activity of production of television serial programmes will prevail over section 194J which is general in nature
India's Gold Imports May Bounce Back To 1,000 Tons Level This Year: Wgc
Former top gold importing nation India's yellow metal imports may bounce back to 1,000 ton level this year as demand remains firm despite an official crackdown , as per World Gold Council.
According to WGC, for the first time India lost its tag of the world's largest gold consumer to China, which lapped up 1,065.8 tons of the precious metal in 2013. India's demand came down to 974.8 tonnes following wide- scale curbs imposed by the government to tame hunger for the precious metal.
After a drop last year, India's gold demand is expected to remain in the level of 900-1,000 tons in 2014, said Somasundaram PR, Managing Director (India) at World Gold Council, via FE.
He, however, didn't offer any precise forecast on imports in 2014, saying that official import data don't factor in supplies through illegal channel and, therefore, don't reflect the correct picture. But analysts say imports in this calendar year could hit at least 900 ton in 2014, up 9% from last year.
Source:- metal.com
Cbec To Fill Up Vacancies Through Promotions By June
The Central Board of Excise and Customs (CBEC) aims to fill up vacancies through promotions by mid-2014 as well as expedite the process of direct recruitment.
This is a part of its cadre restructuring programme, as approved by the Cabinet in December, which envisages creation of 18,067 additional posts to be filled up through internal promotions and direct recruitment.
CBEC Chairperson JM Shanti Sundharam said the board had shortened the time line for internal promotions. It is now expected that all six Departmental Promotion Committees (DPC) will complete their exercise by June 30, she said while addressing Central Excise Day and Investiture Ceremony here on Monday. Under the proposal, 989 additional posts will be for Group ‘A’ officials, such as Chief Commissioner, Commissioner and Assistant Commissioners. The remaining will be for Group B, C and the other category consisting of superintendents, inspectors, havaldars and field staffs. Currently, the sanctioned strength of CBEC is 66,808. After restructuring, it will reach 84,875.
It has also been decided to create 2,118 temporary posts for five years. This will enable superintendent-level personnel to get promoted to Group A as assistant commissioner, which will help remove stagnation at this rank. Creation of additional posts will involve an expenditure of approximately ?774 crore, and will help collect around ?68,000 crore annually.
Tax mop-up
Finance Secretary (who is also Revenue Secretary) Sumit Bose said that indirect tax collection in December and January showed an upsurge. Indirect taxes include customs duty, excise duty and service tax.
“I am happy to report that December and January tax collections show a very positive trend; we have overcome the negative flows into central excise in previous months to report moderate progress in December and even better progress in tax collection in January,” he said.
Indirect tax collections in December were up 16.6 per cent at ?48,000 crore, while service tax collections grew 45.6 per cent to ?18,196 crore, custom mop-up in December stood at ?14,441 crore showing a growth of 4.4 per cent, whereas Central excise collection in December was ?15,367 crore, registering a growth of 3.6 per cent.
Source:- thehindubusinessline.com
Bhutan To Cut Fossil Fuel Imports 70%, Embrace Electric Cars
Africa isn't the only continent where clean energy could leapfrog fossil fuels. In Asia too, where economic growth has brought major air quality and pollution issues, there are signs that a new paradigm could be emerging. From India's proposed 4000 megawatt solar power plant to China's efforts to curb smog, renewables, alternative fuel vehicles and energy efficiency are moving firmly into the mainstream.
The small, mountainous nation of Bhutan is getting in on the act too. The same country that has made headlines for measuring Gross National Happiness (there are some legitimate questions for how GNH is calculated) and aiming for 100% organic agriculture recently announcing a partnership with Nissan to supply electric vehicles (EVs) to government and taxi fleets, as well as electric vehicle chargers, as part of a broad scale effort to cut fossil fuel imports by a whopping 70%, eventually aiming to become a zero emissions nation.
There are a number of reasons why this is important, most notably because while Bhutan is a net exporter of hydroelectric energy, it also imports all of the gasoline and diesel used for transportation. Much like Richard Branson's recent efforts to encourage energy independence for island nations, a country like Bhutan serves to benefit disproportionately from cutting the cord from fossil fuels.
Here's how the press release from Nissan describes the opportunity:
The country currently only uses 5% of the clean power it produces, exporting the majority to India. But almost all of the revenue earned from selling electricity is spent on fuel imported from India to run the nation's existing vehicles, which number some 36,000 vehicles in Thimphu alone.
According to Sandy Dechert over at Cleantechnica, the government fleet and taxi purchases already contracted make up 10%-15% of the vehicles in Bhutan, and the taxi fleet alone would represent 3.5% of all the EVs Nissan has sold worldwide so far. So this is a significant announcement purely on a numbers basis. Dechert also notes that Bhutan's commitment to EVs offers a testing ground for EV performance at high elevations, where internal combustion engines face compromised propulsion, while battery electric vehicles may face challenges of their own—most notably steep terrain and extreme weather.
The other challenge, of course, is that Bhutan remains a relatively poor nation. Most citizens can't afford a vehicle of any type, and many have no access to electricity. (Although the economic benefits of reducing fuel imports could mark a shift in this regard.) Ultimately, though, initiatives like this serve as an important symbolic marker. When entire nations pin their development hopes firmly to clean tech, it sends a sign to the rest of the world as to where the future is headed. Especially if Bhutan gets serious about fixing cities too.
Bhutan's larger neighbors will no doubt be watching closely.
Source:- treehugger.com
Indian Rupee Opens Higher At 61.98 Per Dollar
The Indian rupee opened with a marginal gain of 8 paise at 61.98 per dollar on Tuesday as against previous day's closing value of 62.06 a dollar.
The dollar steadied against its rivals as traders seek more clarity on the pace of the US economic recovery after a series of soft data releases in the past few weeks. Ashutosh Raina of HDFC Bank said, "The markets have been by and large fairly rangebound in recent past.
We saw a knee jerk reaction after the Fed minutes but markets across asset classes have rallied after that. The Sensex and rupee have been no exceptions." "Dollar-rupee is back in the 61.50-62.50/USD range.
The near-term range for the rupee is seen between 61.50-62.50/USD," he added.
Source:- moneycontrol.com
TP adjustments without comparing them with similar transactions or comparables are uncalled for; cas
IT/ILT : Where in course of transfer pricing proceedings, TPO made adjustment in respect of excess price paid to AE located abroad for purchase of software, in view of fact that a comparison had to be done based on similar transactions entered either by assessee or by AE with third parties or other similarly placed entities for acquiring same items, impugned adjustment was to be set aside and, matter was to be remanded back for disposal afresh
Deemed exports are includible in FOB value of exports to determine eligibility of 100% for DTA clear
Excise & Customs : Sales to other 100 per cent EOU (deemed exports) are to be treated at par with physical exports and hence, same will form part of FoB value of exports for purpose of determining eligibility of assessee-EOU to make DTA clearances
SAT reduced penalty imposed on defunct co. as it made due efforts to redress investor's grievances
SEBI : Penalty imposed upon appellant-company for failure to redress investors grievance was to be reduced in view of fact that appellant had become defunct and had tried its best to redress investors grievances
AO can direct special audit even after adjustment is made by TPO under sec. 92CA, rules HC
IT/ILT : Even after TPO makes adjustments under section 92CA, special audit can be directed by AO under section 142(2A)
SC: I-T authorities to be suspended on strong case of criminal misconduct; their removal allowed if
IT : Suspension order of IT authority should be passed only where there is a strong prima facie case against delinquent, and if charges stand proved, would ordinarily warrant imposition of major punishment, i.e., removal or dismissal from service, or reduction in rank etc.
Commissioner can revise matters which were not appealed before Commissioner(Appeals)
Service Tax : When issue of tax liability is not in appeal before Commissioner (Appeals), Commissioner can very well revise adjudication order which had failed to levy penalty under section 76 for failure to pay service tax in time
HC couldn't deal with question of law as to whether incentive was a capital receipt if it wasn't rai
IT: Question as to whether incentive realized by way of additional quota of free sugar, under Sampat Incentive Scheme was capital receipt or not, cannot be decided by High Court if it was not raised before/or adjudicated by authorities below
HC directs respondent to pay sum to Official Liquidator after setting off damages caused by petition
CL : Where petitioner had executed a work for respondent but had left it incomplete due to its winding up, respondent was to be directed to pay sum due to petitioner after adjusting damages incurred by respondent for completing incomplete work
Trust can work for charity with life-long members; registration can't be revoked on ground of perpet
IT: Merely because a trustee is a life long member of a trust, it would not lead to finding that trust is not charitable
Purchase of immovable property under sec. 269UD by CG revoked as authority ignored HC's direction in
IT: Order under section 269UD could not be sustained where appropriate authority had not considered evidence of expert valuer, choose wrong comparable and adopted wrong method of valuation of property
Entitlement to benefit of cum-duty is dependent upon bona-fide payment of duty, rules HC
Excise & Customs : Entitlement to benefit of cum-duty is dependent upon bona fide payment of duty
Penalty for wrong claim of losses and sec. 43B disallowance held justified but not for wrong claim o
IT : Where Assessing Officer in reassessment proceedings had disallowed assessee's various claims and also imposed penalty under section 271(1)(c) upon it, imposition of penalty in respect of disallowance of loss on sale of investments and vehicles and disallowance made under section 43B was justified, whereas imposition of penalty on wrong claim for depreciation on plant and machinery was not justified
Laxity of petitioner estopped her from challenging transmission of shares to another member after a
CL : Where petitioner neither after death of her father nor after having knowledge of Will of her father applied to company for transmission of shares held by her father, she was estopped from challenging transmission of shares by respondent company at a highly belated stage
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