IT : Where assessee-trust gave loan to other trusts out of its corpus fund without obtaining prior permission of Charity Commissioner which was never received back, it was a clear case of diversion of corpus fund in violation of specific direction of donors and applicable laws of land, and, thus, assessee's application for renewal of exemption under section 80G(5) was rightly rejected
Sunday 9 March 2014
Interest paid as per Levy Sugar equalization fund Act was not a contingent liability; it was allowab
IT : Following order passed in assessee's own case relating to earlier assessment year, Tribunal was justified in allowing assessee's claim of deduction in respect of interest paid in terms of Levy Sugar Equalisation Fund, rental charges of gas cylinders and broker's commission for importing gas cylinders
Fights At Hearings Over Coal Plans
Villagers in the southern province of Krabi have come out in strong opposition to a coal-fired power plant and coal seaport, saying the planned project would cause pollution and damage eco-tourism industries which generate billions in baht for local people each year.
Other villagers, however, support the project and fights have broken out at public forums held in Krabi to collect opinions and concerns from local people toward the projects.
Initiated by the Electricity Generating Authority of Thailand (EGAT), the projects are aimed at supplying power of some 870 megawatts to the southern region.
In a bid to get approval from the state agency, EGAT is required to conduct an Environmental and Health Impact Assessment (EHIA) and a public hearing before going ahead with the plans.
At the beginning of the forum, EGAT explained the construction plans and impact expected from the projects.
Greenpeace Southeast Asia’s media campaigner Somrudee Panasudtha, who observed the forum, said a fight broke out during the meeting between those who opposed and those who supported the project.
She said most villagers expressed concern over pollution that could be caused from the coal activities and the potential damage to precious marine resources and tourism industries which attract thousands of visitors around the world to see coral reefs under the Andaman Sea.
The 870-megawatt coal-fired power plant is planned for Krabi’s Nua Khlong district, while the coal seaport project would be established at Ban Klong Ruo.
According to the Greenpeace report, the Ban Klong Ruo coal seaport project is a new plan by EGAT to find ways of transporting imported coal from Indonesia, Australia and Africa to its coal-fired power plant. The environmental watch agency said that the port would lie in Taling-chan sub-district, Klong Kanan district, which is the part of an area listed as wetlands of international importance.
Throughout the year, including the monsoon season, the unloading of coal from larger ships to smaller ones would take place at sea around Koh Lanta. The coal will be unloaded again at Ban Klong Ruo coal seaport to an 8.4 kilometre-long conveyer belt to deliver coal to the power plant.
Greenpeace feared this activity would pose severe damage to Krabi, causing impacts on coral reefs, sea grass, mangroves and nursing gro-unds for agnatic species and plants.
Source:- nationmultimedia.com
Steel Demand In India To Remain High, Says Tata Steel
Steel demand in India is expected to remain high, derived by strong fundamentals and the sector is expected to see an investment to the tune of about Rs.2 trillion in coming years, domestic firm Tata Steel Ltd has said.
“Small per-capita consumption will be a major growth driver and India will need to add substantial steel capacity in coming years... More than Rs.1,500-2,000 billion is expected to be invested in the steel sector over the next six-seven years,” Tata Steel has said in a presentation to the ministry of mines. Small per capita consumption will be a major growth driver, it said.
Tata Steel, which is among the top 10 global steel companies, also said the projected capacity addition “is expected to generate 3-4 millions jobs by the year 2017.” India’s per capita steel consumption is around 60kg, as against the world average of over 210kg, and 460 kg in China. The country’s steel consumption grew 3.3%, the lowest in three years, to 73.3 million tonnes (mt) in 2012-13 on subdued demand due to slackening economy and high interest rates. It grew by 5.5% in 2011-12 and 9.9% in 2010-11.
In the presentation, ‘Potential Areas for Technical Co-Operation in Underground Coal Mining,’ Tata Steel also said that the steel industry is an important contributor to Indian economy.
“The steel industry is the second highest contributor to excise revenues (8%) after oil and gas,” it said. Tata Steel Group, with an annual crude steel capacity of over 29 mt per annum, is the world’s second-most geographically-diversified steel producer with operations in 26 countries.
It had a turnover of $24.82 billion in FY13. Its Jamshedpur facility comprises of a 9.7 mt per annum (mtpa) crude steel production facility. Besides, three new greenfield steel projects in Odisha, Jharkhand and Chhattisgarh are underway to augment production capacity further by 23 mtpa.
Source:- livemint.com
Three Nabbed For Stealing Copper Wires In Naranpura
A team of Naranpura police arrested three persons in connection with theft of copper wires belonging to BSNL from near BSNL office on Friday night. Police have started search for the absconding members of the group.
According to Naranpura police, a team was on patrol when they saw a group digging near BSNL office late in the night. Suspicious, when they approached the dug-up hole, one of the men started running away. Police stopped three others and questioned them.
"The trio was identified as Bansiram Kumawat, a resident of Vadaj, Ramesh Parmar, a resident of Shahpur and Labhuram Kumawat, a resident of Vasna. The man who escaped from the spot was identified as Dashrath Dabhi. The group confessed that they were stealing the copper wires laid by the government-owned telecom company. They had stolen and sold the wires earlier as well. They used to dig up the wire line and cut the sections with saw and crowbar," said a Naranpura police official.
Officials added that a number of gangs are active in Ahmedabad specializing in telecom wire thefts. "Three to four of the gangs have been busted earlier and they are being watched regularly. They generally use a truck to use as shield while digging and later carrying the wire to the illegal receiver of the goods. We have also kept tab on such receivers," said a senior city police official.
Source:- timesofindia.indiatimes.com
Only Indian Billionaires Left After Anglo Quits Australian Port Project
Anglo American’s decision to quit plans for a coal-port expansion in Australia leaves Indian billionaires GV Krishna Reddy and Gautam Adani as the last major investors left looking at extending the terminal.
Anglo, the world’s fourth-biggest miner by market value, follows BHP Billiton and Rio Tinto Group in pulling out of Abbot Point in Queensland state.
GVK Group and Adani Enterprises are studying expansions at the port to export power station coal from separate mine projects they are planning inland in the Galilee Basin at a total cost of about $17bn.
Anglo’s move comes as thermal coal prices trade close to September’s four-year low amid a global supply glut swollen by increased output from major producers including Glencore Xstrata. GVK’s Mr Reddy, 76, has been in talks since 2011 to sell stakes in the $11bn project, while Mr Adani said in 2012 it had received approaches for minority stakes in its $6.4bn development designed to supply its power plants in India.
Anglo’s decision "further erodes confidence that the major mines being proposed in the Galilee basin can happen in the current price environment," said Matthew Trivett, a Brisbane-based analyst with Patersons Securities. "The ongoing weakness in the coal market makes it difficult for the returns to be adequate for the massive capital expense required to bring some of these peripheral basins like the Galilee into production."
London-based Anglo said last Thursday it had told the Queensland government of its withdrawal from the AP-X coal terminal development. The company said it was studying port options in the state, adding that its requirements would be determined by a range of factors, including the long-term coal market outlook.
Glencore Xstrata, the world’s biggest shipper of the fuel, last year halted work on the Balaclava Island export terminal also in Queensland, citing poor low coal prices, overcapacity and concerns about the medium-term outlook. Lend Lease Group, Australia’s biggest publicly traded property developer, last month said it wouldn’t take part in an expansion at Abbot Point after its mandate for the project lapsed.
Another major challenge for the mine proposals is the Galilee Basin’s 500km distance from the coast, requiring construction of a new rail road through Australia’s outback.
Source:- bdlive.co.za
Cotton Body Keen To Invest In Crop Development In Africa
The Indian Cotton Federation (ICF) is keen on investing in cotton development in Africa.Senior ICF officials indicated this to the 16-member African delegation, which was on a visit to this part of the country to understand the mill sector’s requirement.
ICF Vice-President KN Viswanathan said: “We are interested in investing in cotton development in Africa and improving trade relationship between African countries and India.” “The textile sector here is dependent on international merchants for sourcing cotton from African countries. The expression of interest by these African cotton farmers and ginners would go a long way in establishing direct trade links between the mill sector and the growers of cotton in Africa,” he said.
The Federation sought production details from the members of the delegation from six African countries such as Benin, Burkina Faso, Chad, Nigeria, Uganda and Malawi.
Late shipment, shade variation, contamination and delays in presenting documents are some of the major concerns that we face at present, said Nataraj, Managing Director, KPR Mills and Vice-President, ICF. KPR Mills, according to Nataraj, has been sourcing close to 40 per cent of the mill’s cotton requirement from Africa. “We depend on merchant exporters,” Nataraj said.
This is the fourth delegation in three months. The delegation’s visit is said to be part of the Centre’s Cotton Technical Assistance Programme for Africa.
It is a three-year project and is expected to come to an end in 2015. The initiative includes setting up of a knowledge cluster in Benin, bio pesticide lab in Uganda and skill development programmes in Nigeria in association with CICR and CIRCOT, said Milan Sharma, Head – Africa Initiatives, IL&FS Cluster Development Initiative Ltd.
Source:- thehindubusinessline.com
In case of removal of capital goods after use prior to 13-11-2007, pro-rata credit relating to sales
Cenvat Credit : In case of capital goods cleared after use even prior to introduction of specific provision in Cenvat Rule 3(5), while entire credit cannot be reversed, pro rata credit pertaining to depreciated value or sale/transaction value is reversible
HC approves of sale and lease back transaction as no evidence was filed to prove it as sham; allows
IT : Where assessee claimed that during year it had purchased certain imported metallic cops from Kota factory of one 'J' and leased out same to Delhi factory of 'J', assessee was entitled to depreciation on metallic cops
India Willing To Pay Iran For Crude Oil In A Currency Of Its Choice
India has told Iran that it is willing to clear the pending crude oil payments of over $3 billion in a mode of currency of Iran’s choice.
These pending bills are for the period starting February 6, 2013, when the Turkey route of payment for oil sourcing was halted following the Western sanctions on Iran.
“We are still awaiting their (Iran’s) response,” a senior Petroleum Ministry official said. India is hoping that Iran’s recent talks with the US would give some space and clarity on the currency in which the payments have to be made.
Recently, Iranian Foreign Minister Javad Zarif was quoted as being disappointed with India’s decision to cut oil imports following US sanctions. On the oil import payment issue he had said that Iran expects India to repatriate the money “in one way or another”.
Following the Western sanctions on Iran, India had put in place a rupee payment mechanism which allowed it to pay for 45 per cent of oil purchase in its local currency. The mechanism has so far been successful with very little money lying idle in Iran’s Rupee account held with UCO Bank.
India’s exports to Iran have almost doubled to $4.2 billion in the first 10 months of the current fiscal compared with $2.4 billion in the same period last fiscal. Also, India expects to buy 11 million tonnes of crude oil from Iran in 2013-14 and similar volumes in the next fiscal.
During the April-January period of the current fiscal, India imported 8.47 million tonnes of crude oil from Iran. Imports from Iran have fallen from 21.20 million tonnes (mt) in 2009-10, to 18.50 mt in 2010-11, 18.11 mt in 2011-12, and 13.14 mt (provisional) 2012-13.
“Now almost all the Indian currency that is deposited with the UCO Bank in Iran’s account in lieu of payment for 45 per cent of India’s oil purchase is getting used up by Iran for making payments for its imports from India,” a Commerce Ministry official told Business Line.
Since India reduced its oil purchases from Iran last year, the trade gap has narrowed further.
Exporters bullish
According to estimates made by the Federation of Indian Export Organisations, exports will easily cross the $5-billion mark in the fiscal as buyers and sellers from both sides were meeting frequently to seal deals.
“Indian exporters were hesitant to visit Iran earlier fearing that an Iranian visa on their passports could come in the way of receiving visa from the US, though there was no written rule. But, now the fear is fast easing and Indian exporters are willing to engage more with Iran,” pointed out Anupam Shah, Chairman, Engineering Export Promotion Council.
Some Pre-Poll Rule Changes
As expected, the Union commerce ministry made some useful amendments to the Foreign Trade Policy (FTP) and gave some additional benefits to exporters before the election code of conduct took effect. The finance ministry also altered its dispensations for importers which want to pass on Cenvat credit to buyers upon resale/transfer of the goods and notified the procedures for claim of Cenvat Credit refund under Rule 5B of the Cenvat Credit Rules, 2004.
To help exporters seeking corporate debt restructuring (CDR) from banks due to financial difficulties, the FTP was amended to provide that wherever the holder of any EPCG (Export Promotion Capital Goods) Authorisation is granted relief under CDR, it may be allowed extension of the export obligation period up to three years from the date of approval of the CDR scheme, without having to pay any composition fee for this. Under the Market Linked Focus Product scheme (MLFPS), 13 items (mostly textiles) were notified for additional benefit of duty credits of two per cent of the FOB value of exports. Ten more chemicals were added in the list of items eligible for two per cent duty credit under the scheme. For five items relating to the telecommunication sector, the duty credit entitlement was raised from two per cent to five per cent. Three more items were added to benefits under the Focus Product Scheme. Cotton yarn was removed from the exclusion list for the purpose of benefits under the Incremental Exports Incentivisation Scheme.
The finance ministry brought the Customs Baggage Declaration Regulations, 2013, into effect from the beginning of this month. The Central Board of Excise and Customs (CBEC) revised its action plan for monitoring cases where the export obligation period and time prescribed for furnishing evidence of fulfilling the export order was over. CBEC instructed that the guidelines contained in the Ammonium Nitrate Rules, 2012, for its import or export be scrupulously followed by the field formations.
With effect from April, importers which issue invoices on which Cenvat credit can be taken must be registered with the Central Excise department. The registered importer is required to file a quarterly return. So, if manufacturers or service providers or registered dealers want to get inputs from an importer, they must ensure the latter is registered with the central excise department. The Cenvat Credit Rules, 2004, have been amended to facilitate distribution of credit by the input service distributor to its manufacturing units or units providing output service.
CBEC has notified the procedure, safeguards, conditions and limitations for claiming refund of unutilised Cenvat credit taken on inputs and input services during the half-year for which it is claimed, for providing the services of renting of a motor vehicle designed to carry passengers on the non-abated value to any person who is not engaged in a similar business, supply of personnel for any purpose or security services or service portion in the execution of a works contract. The notification prescribes a formula for claiming refund and stipulates this shall not exceed the amount of service tax liability paid or payable by the recipient of the service. Only one claim should be made for each half year. The amount of refund claimed should be debited in the Cenvat account. No refund is admissible for credit taken on input or input services received prior to July 1, 2012.
Source:- business-standard.com
Dollar Slips On Back Of Us, China Data
The Australian dollar has started the week on a softer note, after a stronger-than-expected US jobs report and weaker Chinese trade data pushed the currency lower by almost one cent.
The local currency, which had traded as high as US91.33¢ on Friday, slipped below US90.40¢ on Monday morning. It was buying US90.58¢ about 11am.
The US payrolls data, released on Saturday morning, showed an increase of 175,000 jobs in February, above economists' forecasts. The improved report, in spite of severe winter conditions, saw the US dollar strengthened against a range of currencies. The employment increase also boosted expectations that the US Federal Reserve would continue to taper its stimulus program.
The weaker Chinese data, which was driven by a surprise fall in exports, revived concerns about the strength of the world's second economy. The central government set a growth target of 7.5 per cent for 2014 last week - the same target it has set for the last two years.
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The Australian dollar has been the fourth-biggest gainer against the US currency this year among G10 countries, and has risen 1.6 per cent against the greenback since the start of 2014.
Last week, the currency rose by 1.6 per cent against the US dollar after two consecutive weeks of 0.6 per cent declines. The Australian dollar had been boosted by a jumped in fourth-quarter growth, which took the year-on-year GDP rate to 2.8 per cent.
"It was a strong week for the Australian dollar last week on a truckload of strong data - GDP, exports, retail sales - and the RBA Governor on Friday at his semi-annual testimony noted that he did not see a case for easing at this point in time," TD Securities head of Asia-Pacific research Annette Beacher said.
She added the Chinese trade data was "clearly distorted" by the Chinese New Year festive season, which started in late January.
Investors are turning their attention to the February labour market report, which will be published by the Australian Bureau of Statistics on Thursday. Economists are tipping the jobless rate to remain at a decade-high of 6 per cent, with 15,000 jobs added to the economy.
The Reserve Bank of New Zealand is set to release its monetary policy decision for March on Thursday. A rise in the cash rate could boost the New Zealand dollar at the expense of the Australian currency.
At the same time, an improvement in US retail sales data and consumer confidence, which will be published on Thursday and Saturday respectively, could also weigh on the Australian dollar, FXCM currency strategist Ilya Spivak said.
Commonwealth Bank of Australia currency strategist Peter Dragicevich said he expected the Australian dollar to soften slightly this week on the jobs report. Weaker-than-expected Chinese data released this week, which include figures on new loans, money supply, retail sales and industrial production, could also see the dollar trade lower.
Over the medium-term, the US dollar was expected to strengthen as the Fed's stimulus reduction continues, Mr Dragicevich said.
"In terms of the Fed, it's right to look through the noise of the weather. Given the guidance a lot of the Fed speakers have come out with, it will take a change in their medium-term outlook to stop tapering. I don't think that's going to be the case when they meet next week.
"It's likely they will just maintain their course and do another $US10 billion step-down and continue to stress that if it more than just the weather, they will need to reassess. I think everyone is just looking for the US data to bounce back in the second quarter."
Source:- smh.com.au
Survey party's promise of non-selection of case in scrutiny won't invalidates cases selected as per
IT: Even where based on assurance of survey party that return of income would not be taken-up for scrutiny, petitioner disclosed additional income, Assessing Officer was still empowered to select it for scrutiny assessment
Security Services at job worker's premises and not at its guest house held eligible for Cenvat credi
Cenvat Credit : Cenvat credit is available in respect of security services utilized by assessee at premises of job workers and paid for by assessee; however, services availed at guest houses are ineligible for credit
Employee of a co. held guilty under Competition Act as he put lot of efforts to bring anti-competiti
Competition law : Where an anti-competitive agreement brought about by efforts of a person, then that person would also be equally responsible for contraventions of provisions of section 3 or 4
TP adjustment relating to reimbursement of AMP exp. to AE to be made as per ratio of LG’s case; case
IT/ILT: Following order passed by Special Bench in case of L.G. Electronics India (P.) Ltd. v. ACIT [2013] 29 taxmann.com 300 (Delhi), matter relating to reimbursement of advertisement expenses from AE located abroad, was to be remanded back for disposal afresh
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