IT: Where assessee, a co-operative society, engaged in purchase and sale of agricultural implements, demolished its office and godown to construct shops with a view to reduce accumulated losses, profit on sale of shops was rightly treated as business income
Friday 6 June 2014
Share application money can’t be deemed as unexplained if identity and creditworthiness of applicant
IT: No addition could be made under section 68 on account of share application money received, where assessee had established identity and creditworthiness of applicant companies and genuineness of transaction
No appeal lies before HC on issues relating to leviabilty of evasion penalty as these are questions
Excise & Customs : Questions whether there has been any wilful misstatement or fraud or any contravention or any evasion of duty or there is any suppression of fact are, essentially, questions of fact; hence, no appeal lies to High Court against any factual finding of Tribunal in the matter
Penalty was to be levied if info under Insider Trading norms couldn’t be furnished as key person was
SEBI : Fact that, Managing Director of company was travelling abroad at relevant time could not be a ground to escape penalty for not making disclosures within time stipulated under regulation 13(6) of PIT Regulations
Salary earned from employment in US isn’t taxable in India if employee resides in India for less tha
IT/ILT: Where assessee, an employee of Indian Company, was sent to USA on Job assignment for 306 days, in terms of article 16 of India - USA DTAA, salary income offered to tax in USA, was to be granted exemption from Indian taxable income of assessee
FIIs, QFIs, FPIs and NRI can acquire non-convertible/redeemable preference shares or debenture under
FEMA/ILT/INDIAN ACTS & RULES : Fem (Transfer or Issue of Security by A Person Resident Outside India) (Fifth Amendment) Regulations, 2014 - Amendment in Schedule 5
NR investors can pledge listed shares of Indian Cos. to NBFCs for securing credit facilities: RBI
FEMA/ILT/INDIAN ACTS & RULES : FEM (Transfer or Issue of Security by A Person Resident Outside India) (Sixth Amendment) Regulations, 2014 - Amendment in Regulation 12
Steel Consumption Grows By 0.5 Per Cent In April-May
India's steel consumption grew marginally by 0.5 per cent during the first two months of the current fiscal to 12.623 million tonnes (MT) over the same period last year. According to the Joint Plant Committee (JPC), a unit of the Steel Ministry, India had consumed 12.563 MT steel during the April-May period of FY 2013-14.
"Consumption in April and May is less because the government spending on infrastructure has been very less in these two months. In addition, end-use industries are also consuming less steel," a senior official of a private sector steel maker said. The government's spending on infrastructure is a major source of demand creation for steel and it was understandably less due to general elections, the official said.
The construction sector accounts for around 60 per cent of the country's total steel demand while the automobile industry consumes 15 per cent. During the entire 2013-14 fiscal, steel consumption in India grew by just 0.6 per cent, its lowest in four years, to 73.93 MT over the previous fiscal.
Meanwhile, domestic production of finished steel during the April-May period of the current fiscal grew to 14.99 MT, registering a 1.9 per cent growth over April-May 2013. Major firms such as SAIL, RINL, Tata Steel, Essar, JSW and JSPL produced 7.54 MT and the rest from mini and other producers. Exports were up by 21.2 per cent during April-May this year to 0.982 MT. Outward shipments in May stood at 0.53 MT. Imports grew by 18.2 per cent to 1.06 MT, JPC said.
Source:- deccanchronicle.com
Sluggish Trading Seen On Cotton Market
Thursday saw sluggish trading in the ready cotton market in Karachi following two days of virtual closures in the metropolis because of the Muttahida Qaumi Movement (MQM) leader Altaf Hussain's arrest in London on charges of money laundering. Current cotton crop (2013 / 2014) has virtually disappeared from the market leaving less than 100,000 bales (155 Kgs) of unsold cotton with the ginners.
However, due to sizeable surpluses expected to be generated by leading cotton growers for the forthcoming season (2014 / 2015) like United States, China and India, the general feeling amongst traders is that cotton prices may decline in the coming months. Therefore, cotton activity remained slow and sluggish on Thursday.
Some reports from Karachi textile circles indicated that moderate business transpired over the past two weeks from different origins for import of cotton by the domestic mills on both fixed and unfixed basis. Though initial arrivals of the new cotton crop (August 2014 / July 2015) may trickle in over the next several weeks, full scale cotton arrivals must wait till August 2014 or thereafter. Some pest infestation in the new cotton crop in Sindh has also been reported. As a consequence, some loss in output may occur.
Lint pries have gone down locally by Rs 100 per maund (37.32 Kgs) within this week. Now current crop lint from Sindh was reportedly being offered from Rs 6400 to Rs 6700 per maund, according to the quality. In the Punjab, lint prices were said to have extended from Rs 6500 to Rs 6900 per maund in a slow moving market.
The federal budget for the year 2014 /2015 was announced on the 3rd of June 2014. Almost all the Textile Associations have lauded the Budget where in they have seen that many of their suggestions have been incorporated. Brokers said in Karachi that facility to continue duty free machinery has been extended till 2016. Dealers added that cost of refinancing for textile export has been reduced from 9.4 to 7.5 percent. Moreover, the rate of interest on long term loans has been reportedly reduced from 11.4 to 9 percent. Incentives ranging from one to four percent have been given to exports by value - added textile goods categorywise from one to four percent if the exports exceed by more than 10 percent compared to last year. Import duty of one percent and five percent sales tax have been imposed on cotton imports.
On the global economic and financial fronts, the foremost news emanating from the European Central Bank (ECB) indicates in no uncertain terms that the growth in the Eurozone is lagging significantly. Furthermore, the fear of deflation in the Eurozone is a serious concern which is likely to undermine economic growth seriously. Also, the ECB has reduced its deposit rate below zero, viz. to - 0.1 percent which means that the commercial banks will have to pay deposit charges if they decide to lodge their money with the central banks as per reports received in this regard.
The purpose behind the move initiated by the ECB is to motivate the commercial banks to lend more money to commercial enterprises, particularly the medium and small business enterprises, to invest more and push up economic growth in the zone. It is a daring step taken by the ECB being one of the leading central banks like the United States Federal Reserve, the Bank of Japan and the Bank of England. Obviously such a drastic measure taken by the ECB has inherent uncertainties as it is yet to be seen how the commercial banks will react to this measure. One thing is certain that the Eurozone is still facing economic adversities which remain patently persistent and serious.
Not only is the economic growth slow and sluggish in the Eurozone but its commercial banks remained hesitant to lend out money to new or smaller borrowers. Such a situation may push back any economic recovery the Eurozone may have made over the past few years. There are fears that the ongoing deflation in the Eurozone could increase unemployment. Already unemployment figures in the peripheral economies of the Eurozone like Spain, Greece and Portugal remain phenomenal.
Serious doubts remain whether the commercial banks will lend money to the Small and Medium Enterprises (SME's). Moreover, the European Central Bank was expected to announce further policy measures later in the day to stimulate the Eurozone economy. During the first flush after the announcement by the European Central Bank to introduce negative interest rate to encourage the commercial banks to increase their lending, sundry stocks around the world took the decision positively.
Later in the day on Thursday, the United States shares were little changed on the measures announced by the ECB. Indeed the European stocks prices rose to six-year higher levels. The employment report in the United States had yet to be announced. Anyhow, more time is needed to fully digest the measures taken by the ECB to install negative rates of interest if the commercial banks deposit their surpluses with the Central Bank.
Source:- brecorder.com
No addition on basis of ‘e-mail’ unearthed during search without any material to prove undisclosed i
IT : Where Assessing Officer made addition to assessee's income in respect of additional sale consideration received on sale of land merely on basis of an e-mail recovered during course of search action at premises of another person and there was no independent material available supporting such an addition, Tribunal was justified in deleting addition so made
Assessee gets immunity from penalty as he had no mala fide intention in not depositing service-tax i
Service Tax : In view of finding of fact that there was no mala fide intent of assessee in not depositing service tax in time, penalty could be waived under section 80
HC raps AO for disallowing freight exp. alleging Sec. 194C TDS default when exp. didn’t exceed presc
IT: Where assessee paid freight charges not in excess of Rs. 20,000 in regard to single transaction or in excess of Rs. 50,000 per annum to a particular career, it was not required to deduct tax at source under section 194C while making said payments
No penalty on declaration of income during search without an independent enquiry by AO to prove conc
IT : In absence of concrete material on record indicating that assessee had concealed particulars of income, Assessing Officer could not pass penalty order merely on basis of declaration of undisclosed income by a partner of assessee-firm in course of search proceedings
Recovery can’t be made merely on basis of notice; assessment order is a must to proceed for recovery
CST & VAT : Where Assessing Authority being of opinion that assessee had availed benefit of input tax credit related to exported goods though not entitled issued notice under section 44 and called upon it to deposit with department a sum of Rs. 6.35 crores, since no order of assessment or any other order of quantification of assessee's liability was passed, straightway ordering recovery was wholly not permissible
CBDT’s instruction on maintainability of appeal has retro-effect by virtue of sec. 268A, rules HC
IT : In terms of Instruction 2 dated 24-10-2005 and by virtue of retrospective operation of provisions of section 268A, revenue could not file appeal against Tribunal's order deleting penalty imposed under section 158BFA as monetary effect was less than Rs. 4 lakh
No education cess on ‘cement cess’ and ‘dolomite cess’ levied by Ministry of Industrial Development
Excise & Custom : Education cess is levied at 2 per cent of aggregate of duties of excise levied by Ministry of Finance and, therefore, it is not leviable on 'cement cess' and 'dolomite cess' levied by Ministry of Industrial Development and Ministry of Labour
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