No sec. 68 addition on account of loan transactions if revenue approved of loan repayment in later y

IT: Where department had accepted repayment of loan in subsequent year, no addition was to be made in current year on account of cash credit

Case remanded to check sec. 68 additions on assessee's failure to prove authenticity of bank transac

IT : Where assessee failed to discharge burden as laid down under section 68 and did not prove genuineness of transactions, matter was remanded to Commissioner (Appeals) to decide same afresh in light of judgment of Apex Court in CIT v. P. Mohanakala [2007] 291 ITR 278/161 Taxman 169

Credit couldn't be denied if duty paid goods were returned and used in further manufacturing

Excise & Custom : Where assessee had proved by documentary evidence that they actually received duty-paid goods from their respective purchasers and same were actually used in manufacturing process, credit/refund of duty paid earlier could not be denied merely because a particular form was not maintained/not filed

Inter-corporate deposits can't be treated as deemed dividend, says ITAT

IT : Where assessee-company held 18 per cent shares of a company and during year it received inter-corporate deposit from said company, inter-corporate deposit could not be treated as a loan falling within purview of section 2(22)(e)

SC: Case remanded on issue of allowability of guarantee commission as it was remanded in earlier yea

IT : Issue of guarantee commission claimed by assessee was remanded for fresh adjudication

Petition filed belatedly for regularizing a void-ab-initio sale deal executed in winding up process

CL : Application filed after inordinate delay of 20 years for regularization of sale transaction executed during pendency of winding up proceedings of respondent-company would be rejected

No alleged suppression on part of assessee which Central Excise Officers couldn't raise in its audit

Excise & Customs : Once officers have audited records, they were supposed to examine each and every issue in respect of assessee for audit period and if they have not raised any objection on issues involved, suppression on part of assessee cannot be invoked in present case

Sum paid to foreign co. for transfer of right to use software would be deemed as ‘royalty’

IT/ILT: Consideration paid by Indian customers or end users to assessee, a foreign company, for transfer of right to use software/computer programme in respect of copyright falls within mischief of 'royalty' as defined under sub-clause (v) to Explanation 2 to clause (vi) of section 9(1)

Tea Powder, Factory Equipment Destroyed In Fire In Chikmagalur District

Tea powder and machinery worth nearly Rs. 5 crore were gutted in fire in a tea factory at Koradihitlu village in Koppa taluk of Chikmagalur district on Friday night.

As the fire, reportedly caused by a short circuit, occurred during nonworking period, no casualties were reported.The fire was noticed around midnight.

The night guards informed the police and the fire brigade of the incident. Fire tenders from Koppa, Sringeri and N.R. Pura rushed to the spot and succeeded in preventing the fire from spreading, but could not save some factory equipment.

Aroor Ramesh Rao, managing director, Mysore Plantations (of which the factory is a subsidiary), was in Bangalore when the incident occurred.

According to initial estimates, property worth Rs. 5 crore (including machinery worth Rs. 2 crore and tea powder worth Rs. 30 lakh) has been lost, a figure that was also reported by factory manager Prem Kumar in his complaint.However, after conducting a mahajir, the police estimated the value to be Rs. 3 crore.

Source:- thehindu.com

Sum collected by consignment agents for interest and bank charges can’t be included in assessable va

Excise & Customs : Extra collections made by consignment agents towards interest on delayed payment or bank charges are not, prima facie, includible in assessable value under Central Excise

HC raps revenue for initiating proceedings even when sec. 143(2) notice was time barred; matter rema

IT : Where notice under section 143(2)(ii) is served beyond time specified, further proceeding will be vitiated

Domestic Car Sales Rise 1.39% In Feb After Duty Cut, Auto Expo

Car sales in India rose 1.39 per cent in February, the first time since September, following the recently announced excise duty cut on vehicles and positive sentiment created by the Auto Expo.

The Society of Indian Automobile Manufacturers (SIAM), which released the data today, however, remains cautious on the outlook for the industry.

“It will take some more time to see if the negative trends have reversed. We are getting feedback from companies that footfalls have increased,” SIAM Director-General Vishnu Mathur told presspersons here.

The excise duty cut and the Auto Expo have created positive sentiment but it is too early to say if all this would translate into sales, he added.

SIAM said domestic car sales increased 1.39 per cent to 1,60,718 units in February from 1,58,512 units in the year-ago month.

“Month after month, numbers are so volatile, there is so much fluctuation that there is no trend visible,” Mathur said.

In the interim Budget on February 17, Finance Minister P Chidambaram cut the excise duty to 8 per cent from 12 per cent for small cars, scooters, motorcycles and commercial vehicles; 24 per cent from 30 per cent for SUVs; 20 per cent for mid-sized cars from 24 per cent, and 24 per cent for large cars from 27 per cent.

During the April-February period of this financial year, car sales declined 4.6 per cent, while the broader passenger vehicle segment witnessed a fall of 5.9 per cent.

“The current fiscal is going to end on a negative for passenger and commercial vehicles. Even if sales are much better in March, it won’t be able to erase the effect of rest of the fiscal, which has been largely negative,” Mathur said.

Market leader Maruti Suzuki India posted a marginal increase in domestic sales at 84,595 units last month from 83,865 units in the same month a year earlier.

Hyundai Motor India sold 33,875 units, marginally lower than 33,936 units despatched in February 2013.

Sales of commercial vehicles were down 29.84 per cent to 47,982 units in February, the 10th straight monthly decline.

“The next fiscal should be better as the new Government would come in and roll out policies on various sectors, including mining. Moreover, various projects could also get approval,” Mathur said.

Source:- thehindubusinessline.com

China Steel, Iron Ore Futures Slide After Dismal Data, Spot Ore At 8-Month Low

Chinese steel and iron ore futures slumped to their lowest levels ever on Monday after a surprise drop in exports swung China's trade balance into deficit last month and amplified fears of a slowdown in the world's No. 2 economy. China's exports fell 18.1 percent in February from a year ago, defying market expectation for an increase.

The dismal numbers followed a series of factory surveys since the start of 2014 that point to weakness in economic activity as demand falters at home and abroad. The disappointing trade data weighed heavily on Chinese-traded commodities including copper and crude oil, although imports of most were up on the year.

The weak exports suggested China's commodity import demand could shrivel in coming months as end-users draw down swollen inventories.

The losses in steel futures would pile more pressure on spot iron ore prices which dropped to the lowest in more than eight months on Friday.

Iron ore swaps have slumped.

The most-traded rebar for October delivery on the Shanghai Futures Exchange was down 4 percent at its contract low of 3,221 yuan ($530) a tonne by midday, falling by its daily downside limit.

Iron ore for delivery in September on the Dalian Commodity Exchange dropped almost 6 percent to 728 yuan a tonne, its weakest since the bourse launched iron ore futures on Oct.

18, also sliding by its daily floor.

"The China data shows there will be more difficult times ahead," said an iron ore trader in Shanghai.

Steel demand in China, the world's biggest consumer and producer, had been weak since the start of the year as a slowing economy curbs demand for the building material.

Construction activity which typically picks up from March is unlikely to spur a strong recovery in demand for steel as Beijing pursues economic expansion that is less driven by investment and more fuelled by domestic consumption.

Iron ore for immediate delivery to China fell 2.3 percent to $114.20 a tonne on Friday, its weakest since June 26, according to data compiled by Steel Index.

Iron ore, China's top import commodity by volume and the biggest revenue earner for global miners Vale, Rio Tinto and BHP Billiton , has lost almost 15 percent this year, among the hardest hit commodities this year.

'MORE RELUCTANT'

The sustained slide in steel prices suggests more downside risk for iron ore, traders said. "Mills are more reluctant to buy iron ore in this situation and we will see iron ore continue to drop in the next few days. We may break $100 in a very short time," said another trader in Shanghai.

A slump in iron ore to a three-year low of $86.70 in September 2012 shuttered many high-cost mines in China and forced global miners to rethink expansion and focus on cost cuts. Iron ore swaps on Monday sustained further losses, suggesting investors are anticipating more declines in spot iron ore prices.

April iron ore swaps traded at $102.50 a tonne in early deals after settling at $108.56 on Friday, when it fell by almost $4, traders said.

Offers for April and May contracts ranged at just above $100, they said.

The May contract fell $4 to $107.94 on Friday.

The price slide comes after stockpiles of imported iron ore at Chinese ports rose to a fresh record of 105 million tonnes on Friday, according to data from industry consultancy Steelhome.

China's iron ore imports rose 11.9 percent in February from a year earlier to 63.2 million tonnes, but down from a record high of 86.8 million tonnes in January.

The sustained increase in stockpiles reflected arrivals of iron ore contracted by Chinese mills under long-term deals with miners, traders said, as well as the growing use of the commodity as a loan collateral amid tight credit conditions.

Source:- brecorder.com

Indian Textile Industry Working To Boost Business In Bangladesh

Indian textile businessmen are focusing on increasing the country's market share in Bangladesh to offset the impact created by China in last few years, say industry experts.



"Bangladesh is a natural trading textile partner for India. But for last two years, China is increasingly consolidating its footsteps in the Bangladeshi markets," Sanjay Murarka, partner of Kolkata-based FM Textile Private Limited, told PTI yesterday on the sidelines of the ongoing International Ethnic Week (IEW) Goa 2014.



A proper and concentrated focus on Bangladesh markets can work wonders for the textile industry, which is amongst the top trading communities in India, he said.



"From Surat itself, the trade of textiles to Bangladesh is to the tune of Rs 1,000 crore," Murarka said.



The ongoing IEW, which has 1,000 Indian and 400 international visitors joining hands, has provided Business to Business (B2B) platform for buyers and the sellers.



Surat Dreams, a Gujarat-based textile business initiative, which has organised the event, expects over Rs 1,000 crore business deals to be signed among participants.



The textile businessmen from the US, UK, Bangladesh, Dubai, Colombo are looking out to expand their horizons during the two-day-long event that began here yesterday.



Nihal Jain, an organiser and partner of Siddharth Feb Text Pvt Ltd, said India and Bangladesh are like one family but "Chinese manufacturers are reaping the benefits."



A strong contingent of 130 Bangladesh traders has arrived for the IEW and holding across the table discussions with various traders, who have set up their stalls displaying the products on the sidelines of the event.



"We are here to look out for fabric and unstitched material," said Mohammad Shahidul Alam from Dhaka-based Joint Impex Trade company.



Indian places like Surat, Delhi and Ahmedabad are hot spots for such material, he said.



Refusing to comment on China's increasing presence in its domestic market, Mohammad Wahid Murad, another buyer, said the ethnic wear products manufactured in Bangladesh are traded within the country.



"We are a huge consumer market. Places specially like Dhaka, Chittagong and Sylhet are consumer hubs," he said, adding that the trade with India is more preferred due to the geological proximity.

Source:- economictimes.indiatimes.com

Oilmeal Exports From India Down 53% In Feb: Sea

Oilmeal export from India has reported a sharp decline of about 53 per cent for the month of February 2014 against the same month last year. The drop in the oil meal exports is attributed to the disparity in soybean crushing, which led to lower processing of soybean and availability of soybean meal for export.

The data compiled by the Solvent Extractors’ Association of India (SEA) showed that export of oilmeals for the month of February, 2014 was 307,260 tonnes against 659,101 tonnes in February, 2013.

Out of 307,260 tonnes of total oilmeal exports reported during the month, soybeam meal was 183,550 tonnes, while 82,294 tonnes was rapeseed meal.

For the period April 2013 to February 2014 is reported at 3,933,664 tonnes compared to 4,415,606 tonnes during the same period of last year down by 11 per cent.

SEA further noted that exports of oilmeals to countries like Vietnam, Japan, Thailand and Indonesia have dropped significantly during the period April-February. Oilmeal exports to Vietnam have dropped by 69 per cent against the same period last year, the same has dropped by 60 per cent to Japan and 48 per cent to Indonesia.

However, the data showed that Europe has turned out to be a bigger market for Indian Non-GMO Soybean Meal. Oilmeal exports to Europe have increased by 16 per cent on year-on-year basis during April-February period. Iran has emerged as a major market for us.

Source:- thehindubusinessline.com

Rupee Trading At 61.21 Vs Dollar

The rupee dropped to 61.33 against the dollar in morning trade on fresh demand for the US currency from banks and importers due to higher value of the greenback overseas.



The rupee resumed lower at 61.28 per dollar as against the last weekend’s level of 61.09 at the Interbank Foreign Exchange market.



It hovered in a range of 61.15-61.33 per dollar before quoting at 61.21 at 12.32 pm.



Market men believe that the rupee will not sustain above 61 at this point in time, as oil importers and the RBI will immediately buy dollars when they see the domestic unit appreciate. Last week, the domestic unit gained 1.5 per cent against the greenback.



“After seeing the rupee fall to below 68 last year, any gains beyond 61 will make the markets jittery and importers will buy dollars,” a chief dealer of a public sector bank said.



A sudden appreciation of the Indian unit is also seen as detrimental by some analysts, as a stronger rupee will hit export gains.



In New York, the dollar turned broadly higher on last Friday after data showed the US economy in February added far more jobs than expected, providing a more upbeat read on economic growth this year.



The 8.83 per cent 10-year benchmark bond maturing in 2023 declined to Rs 100 from the previous close of Rs 100.09 , while its yield moved-up to 8.82 per cent from 8.81 per cent.



The inter-bank call money rate, the rate at which banks borrow money from each other, opened higher at 8.10 per cent against the previous close of 7.90 per cent.

Source:- thehindubusinessline.com

TPO can’t select comparable on basis of info obtained under sec. 133 unless such info is furnished t

IT/ILT : Where TPO selected a company as comparable on basis of information obtained under section 133(6), non-furnishing of such information to assessee would vitiate selection of that company

HC condones delay in filing appeal on demise of assessee's mother

IT: Where assessee against assessment order dated 21-12-2009 filed appeal before Commissioner (Appeals) on 15-11-2010 and sought condonation of delay stating that (i) his mother was not keeping good health for last many years and died on 23-12-2008, and (ii) he was only person to look after his mother, delay in filing appeal deserved to be condoned

HC rejected winding-up appeal as petitioner couldn't provide cogent reason to prove unpaid claims

CL : Where there was no cogent material to show that amount claimed by petitioner was legitimately due, or that there existed a creditor-debtor relationship between petitioner and respondent, winding up petition was thoroughly misconceived as it was misdirected and deserved to be dismissed

HC slams revenue for contending that profits on sale of flats were business profits first time befor

IT : Where revenue all through treated proceeds of flats received under land development agreement, etc. as short term capital gains, it could not for first time before Tribunal claim it as business income

Cash discounts allowable as deduction in computing assessable value under excise even if it wasn't a

Excise & Customs : Cash Discount is in nature of interest and is allowable as deduction in computing assessable value under Central Excise, whether or not it is availed of

ITAT to make open remand order to AO for verifying sec. 11 compliance in case of application of fund

IT : For purposes of finding out compliance of section 11 in respect of application of fund, remand of matter to Assessing Officer, should be an open remand

Current year’s data preferred over multiple year’s data to fix ALP unless it shows distorted view of

IT/ILT: In order to determine ALP, comparability of an uncontrolled and unrelated transaction with international transaction has to be decided by using current year data and it is only when current year data does not give a true picture of affairs and results of comparables due to existence of abnormal circumstances, multiyear data can be considered

Writ allowed by single judge on wrong assumption of date of assessment order deserved to be quashed:

IT: Accepting revision on wrong assumption about date of assessment order, to be re-adjudicated

Disposable Aluminium Foil Casserole/ Trays/ Baking Dish to be classified in CETA heading 76.15 and n

Excise & Customs : Disposable Aluminium Foil Casserole/Trays/Baking Dish is classifiable under Heading 76.15 "Table, kitchen or other household articles and parts thereof, of Aluminum"; and not under Heading 76.12 "Aluminium Casks, Drums, Cans, Boxes and Similar Containers"