Judiciary denies to pardon consultant's laxity which caused delay in filing of appeal

Excise & Customs : Delay in filing appeal is condonable where consultant, though instructed to file separate appeals for buyer and seller arising from common cause, failed to file separate appeal in time on behalf of assessee-buyer

Interest income couldn't be adjusted with pre-operative exp. if investment had no nexus with busines

IT: Where there was no inextricable link between investment and project, interest income on said investment could not be permitted to be adjusted against pre-operative expenses in respect of said project

ITAT set aside TP adjustments as functionally inappropriate comparables were selected by TPO

IT/ILT : Wherein transfer pricing proceedings, TPO made certain adjustment to assessee's ALP in respect of import of traded goods, in view of fact that some of comparables selected by TPO were inappropriate on account of functional difference and, moreover, after excluding certain unrelated expenses such as depreciation on let out building, write off of fixed assets etc., assessee's operating margin was higher than that of remaining comparable adopted by TPO, impugned adjustment made to assessee

Sec. 27 of customs Act isn't applicable for refund of anti-dumping duty

Customs : Sections 9A and 9AA of Customs Tariff Act are a complete code for refund of anti-dumping duty, section 9A(8) ibid read with section 27 of Customs Act, 1962 has extremely restricted application and can be applied only for manner and time-limit for refund until framing of rules under section 9AA(2) ibid.

SAT remanded matter to pass a fresh order as both parties pleaded for inclusion of additional docs o

SEBI : Where penalty was imposed upon appellant for violation of PIT Regulations and parties pleaded for remand of case to Adjudicating Officer for considering some documents on record, matter was to be remanded to Adjudicating Officer for passing fresh order on merits

ITAT set aside TP adjustments functionally inappropriate comparables were selected by TPO

IT/ILT : Wherein transfer pricing proceedings, TPO made certain adjustment to assessee's ALP in respect of import of traded goods, in view of fact that some of comparables selected by TPO were inappropriate on account of functional difference and, moreover, after excluding certain unrelated expenses such as depreciation on let out building, write off of fixed assets etc., assessee's operating margin was higher than that of remaining comparable adopted by TPO, impugned adjustment made to assessee

No depreciation on development of roads/highways on BOT basis; development exp. to be amortized - CB

IT : Section 119, Read With Section 32, of The Income-Tax Act, 1961 - Income-Tax Authorities - Instructions to Subordinate Authorities – Clarification On treatment of Expenditure Incurred for Development of Roads/Highways in Bot Agreements

Govt. notifies revised Form 'A' for 8% savings (taxable) bonds, 2003

IT : 8% Savings (Taxable) Bonds, 2003 - Amendment in Paragraph 9

RBI bans repayment of domestic loans through ECBs

BANKING/FEMA/ILT : Fund/Non-Fund Based Credit Facilities to Overseas Joint Ventures/Wholly Owned Subsidiaries/Wholly Owned Step-Down Subsidiaries of Indian Companies

El Nino Likely To Reduce Farm Incomes And Wheat Exports

All the climate models now show an El Nino pattern is likely this year, with six of the seven global models predicting the threshold will be reached as early as July.

The Australian Bureau of Meteorology says it's based on warmer temperatures in the Pacific Ocean along the equator.

El Ninos tend to bring hotter and drier weather to eastern Australia.Seventy per cent of the El Nino events in the past century have resulted in drought over Australia, especially when combined with a positive Indian Ocean Dipole, which is also predicted for early spring.

Luke Matthews, agricultural commodity researcher with the Commonwealth Bank, says it's likely to reduce farm output and exports this year, with wheat crops in eastern Australia worst affected.

Since 1970, none of the 11 El Nino events have produced bumper grain crops.

"Specifically for wheat yields across eastern states; what we see is that in eight of 11 of those El Ninos, yields have fallen by at least 15 per cent.

"So there is a significant chance that if we have an El Nino, we'll see disappointing wheat crops across the east coast."

Mr Matthews says it's different for Western and South Australia, where there is no consistent correlation between El Nino and low wheat yields.

He hopes there won't be an El Nino, and remains optimistic that the recent weeks of autumn rain have set up the soil to grow good crops.

Global wheat prices have fallen in the past week, but Mr Matthews says the price is still around $290 a tonne, which is in the high range, with the unrest in the Black Sea region providing a floor to the price.

The US wheat crop is currently rated as a 'very disappointing 34 per cent good to excellent'.Wheat futures have also fallen off a recent high of 725 US cents a bushel to 680 US cents bushel for July delivery.

Source:- abc.net.au

No sec. 80-IB relief to manufacturer of polyurethane foam as it is specified under prohibited list

IT : Where assessee was engaged in manufacture of polyurethane foam [PT foam] in different shapes of automobile seats and it claimed deduction under section 80-IB contending that PT foam was used by it as a raw material for manufacturing automobile seats and, therefore, end product was automobile seats, since assessee simply produced foam seats and did not undertake any further process to change its original character as PT foam, said item was covered by Entry No. 25 of Eleventh Schedule to Act

ST penalty under sec. 80 couldn’t be waived off if extended period was validly invoked

Service Tax : Confirmation of service tax demand by invoking extended period and waiver of penalty by invoking Section 80 cannot go hand in hand; therefore, penalty cannot be waived, if extended period is validly invoked

Bring Indian Investments To Boost Exports: Cpd

The Centre for Policy Dialogue organised a talk on trade between India and Bangladesh on Tuesday.The institution also recommended infrastructural improvements in the land ports and removing India’s non-tariff barriers on export to improve trade.

State Minister for Foreign Affairs Shahriar Alam was the chief guest at the event.CPD Executive Director Mostafizur Rahman, who presented the keynote paper, said luring in Indian investments to the sectors which export to the country was crucial for facilitating trade between the countries.

“Trade barriers have to be removed if we want to attract this investment,” he said.But he said India’s duty-free access of readymade garment products for Bangladesh would not have a big impact on export.

“Bangladesh will also have to take some major steps to relax trade barriers.”Rahman said 90 percent of the trade with India was done through land ports. “We have not done the kind of development required to handle such a large flow of trade,” he said.

He recommended improvement of land port infrastructures, increasing warehouse facilities, setting up cold storages and laboratories and digitalisation of import-export documents.

“These things will reduce the costs of trade and increase Bangladesh’s trade capacity in the Indian market. These things are also important for import, because they affect the costs of both,” he said.

CPD Honorary Fellow Debapriya Bhattacharya said Bangladesh had been unable to make use of the facilities given by India because of lack of effort, continuity and coordination within the government.

Bangladeshi businesses need 21 pieces of documentation to export to the European Union while for India they need 75.

Former FBCCI president Abdul Awal Mintoo said Bangladesh would have to diversify its export goods and improve their quality to capture the market.

India-Bangladesh Chamber of Commerce and Industries President Abdul Matlub Ahmed said many Indian investors wanted to come to Bangladesh but uncertainty over getting land, gas and power connections held them back.

State Minister Shahriar Alam said the government had taken several initiatives to bolster trade with India, including the ongoing effort to open two deputy high commissions, one at Guwahati in Assam and another in Chennai.

“These two deputy high commissions are awaiting Indian government approval,” he said.“Also, we are trying to launch two more sets of trains and container trains. Hopefully in the future more initiatives will be taken to increase communications with India, which will benefit both the countries in trade and other issues,” he said.

Source:- bdnews24.com

HC marked power tariff concession as revenue receipt as it was contingent to commencement of product

IT : Where grant of subsidy was contingent upon commencement of production, same had to be treated as revenue receipt

HC sets aside Tribunal's order as it dismissed assessee's appeal for failure of other party to make

Excise & Customs : Where Tribunal order had directed dismissal of assessee's appeal in event of not making of pre-deposit by other party, such order was set aside/modified, as assessee cannot be penalized for fault of other parties

Pak Says Import Bans To Go After India Eases Subsidies

Pakistan has said it will allow import of all items from India once the ongoing election process in the country is over and New Delhi is in a position to implement the “arrangement” for reducing subsidies on some items of export interest to Pakistan.

“Early this year both countries agreed on an arrangement under which India would reduce subsidies on items that can be exported by Pakistan. But it could not be implemented as the model code of conduct came into play,” the Pakistani High Commissioner to India Abdul Basit said in an interaction with members of the Indian Women's Press Corps on Wednesday.

Basit said once the new Government is in place, the whole issue could be reconsidered.Extending India non-discriminatory market access, which basically means allowing all Indian items to be sold in Pakistan, is a key condition that New Delhi has laid down before Islamabad for re-starting the bilateral trade dialogue that has been stalled for the past year. Pakistan disallows 1,209 items from India.

India, on the other hand, allows import of all items from its neighbour, but Pakistan alleges that there were a number of non-tariff barriers that impeded imports.

“There are four sectors in Pakistan, namely, pharmaceuticals, agriculture, automobile and textiles, that are apprehensive about competing with India, " the High Commissioner said.

Source:- thehindubusinessline.com

Ls Polls: Cash Restrictions To Dent India’S Gold Imports

India's gold imports in April and May could be less than half of arrivals in March as restrictions on the movement of cash during general elections dent the buying power of consumer’s jewellery industry officials said.

Lower imports by the world's No.2 buyer of gold after China could hurt a recovery in global prices of the precious metal after a sharp 28 percent drop last year.

"Indian demand for gold is lower as it is difficult for consumers to carry cash given election-related curbs. They are resisting unnecessary buying at the moment," said Bachhraj Bamalwa, Director with All India Gems and Jewellery Trade Federation (GJF), which groups more than 300,000 jewellers.

Gold arrivals in both April and May could plunge to 20 tonnes from March imports of 50 tonnes, Bamalwa said.

To guard against bribes or vote buying during the ongoing elections the Election Commission has made it mandatory for individuals carrying more than 50,000 rupees ($830) to provide documentation, such as a proof of identity and an explanation for the source of funds.

For jewellers, the cap is 200,000 rupees in cash. This has hit jewellery sales, which have already been squeezed by a 10 percent gold import duty imposed last year to reign in India's ballooning current account deficit.

Rural buyers, who account for about 70 percent of India's gold demand pay in cash for jewellery as they have limited access to banking facilities like cheques and credit cards.

"The (Income Tax) department is very strict on the movement of cash and has opened a 24x7 call centre to receive complaints on violations, so people are scared to carry cash or gold," said Kumar Jain, vice-president with Mumbai Jewellers Association.

In previous elections, political workers suspected of trying to bribe voters were caught with suitcases packed with cash and stowed in car trunks, ambulances and even hearses.

The ongoing elections in India started on April 7 and will continue till May 12. Results will be announced on May 16.

Jewellers are unwilling to transport huge stock and cash due to the curbs, GJF's Bamalwa said, adding that about 58 kilograms of legal gold was seized by income tax officials in the western state of Maharashtra earlier this month.

"Seizures of legal gold are happening everywhere ... government officials are harassing jewellers with legal gold in the name of elections," Bamalwa said.

Tighter supply of gold as the wedding season peaks next month could further boost premiums from their current two-month high of $89 an ounce in India.

"There will be wedding season and Akshaya Tritiya demand in May, but supplies won't suffice. We may see high premiums till May, after that it may cool down," said a senior official with a private bank, which imports gold.

Gold is a popular gift at weddings in India. Akshaya Tritiya, which is on May 2 this year, is one of the days considered auspicious according to the Hindu calendar for gold purchases.

India's overseas purchases of gold may return to the 50-tonne mark only after June and hold steady thereafter until import curbs such as the so-called 80/20 rule according to which a fifth of all shipments should be re-exported as finished product are eased, industry sources said.

Prior to the curbs, India on average imported about 80 tonnes per month. "The government may consider partial lifting of restrictions like relaxation of the 80/20 rule ... but they won't do anything in a hurry as it will be very harsh for the current account deficit," said Surendra Mehta, secretary general of India Bullion and Jewellers Association, which controls 70 percent of the imports by its members.

Source:- post.jagran.com

Rupee Trading Weak At 61.14 On Month-End Dollar Demand

The rupee was trading weak by 38 paise at 61.14 per dollar at 1.39 p.m. local time on good demand for greenback from banks and importers despite weakness of dollar in the overseas market.

The domestic unit resumed weak at 60.88 per dollar against the last closing level of 60.76 per dollar at the Interbank Foreign Exchange (Forex) market.

It hovered in a range of 60.87-61.19 per dollar during the afternoon trade.

Analysts believe that the Indian currency is likely to trade in the range of 60-61 over the next two weeks.

FII inflows

A slowdown in capital inflows into the Indian markets has also been cited as the reason for the rupee’s fall.

Abhishek Goenka, Founder & CEO, India Forex Advisors, said: “The sluggish pace of FII flows is seen eating away the gains in the domestic currency. The pace of FII flows in the Indian markets has dramatically reduced. From the humungous inflows of $5.17 billion in the previous month, the Indian markets have been able to get only $1.31 billion this month till now with the month-end inching nearer.”

Call rates, G-Secs

The overnight call money rate (the rate at which banks borrow money from each other to overcome short-term liquidity mismatches) opened higher at 8.90 per cent against the previous close of 8 per cent.

The yield on 10-year benchmark 8.83 per cent bond, maturing in 2023, opened higher at 8.86 per cent against the previous close of 8.85 per cent. Prices fell to Rs. 99.86 from Rs. 99.83. Bond yields and prices move in the opposite direction.

Source:- thehindubusinessline.com

Appeal with ITAT is maintainable if an order of refund pursuant to order of CIT(A) wasn't followed b

IT: Where Commissioner (Appeals) deleted disallowance made by Assessing Officer and thereupon Assessing Officer passed an order on assessee granting refund, but no order for payment of interest under section 244(1A) on refund amount was passed and assessee aggrieved by order omitting to grant interest preferred appeal before Commissioner (Appeals), said appeal was maintainable under section 246

Best judgment assessment can’t be challenged unless it was not proved as best judgment of revenue of

CST & VAT : Best judgment assessment has to be to best of judgment of Revenue Officers and can be challenged only if it is proved that that it was not to best of judgment of 'Revenue Officer'.

Deemed dividend arises as assessee failed to show that sum was advanced in course of money lending b

IT: Where assessee had failed to establish that substantial part of business of company was money lending and loans and advances received by assessee were in ordinary course of money lending business, same were to be treated as deemed dividend under section 2(22)(e)

No VAT on basis of provisional invoices of LPG when its price subsequently fixed by Petroleum Planni

CST & VAT : Where assessee-company was engaged in manufacture of LPG and it at time of supply of LPG to oil companies issued provisional invoices and after receiving information from Petroleum Planning and Analysis Cell [PPAC] about final price of LPG fixed by it issued final invoices by issuing credit or debit notes, sale price of LPG in case of assessee would be price fixed by it after deduction in primary invoice on basis of credit notes issued subsequently

HC affirms ITAT's action of remanding case to decide whether exp. was 'deferred revenue exp'

IT: Where Tribunal remitted matter to Assessing Officer to consider issue with respect to addition of 'water and service charges' after verifying facts as to whether any deduction was allowed in earlier years on basis that same was deferred revenue expenditure, no interference was called for