CST & VAT: Where Assessing Authority had levied penalty upon assessee under section 12B(4) of Karnataka Sales Tax Act, 1957 for short payment of advance tax holding that out of tax levied of Rs. 1,15,717, balance payable was Rs. 99,849 and said amount was more than 15 per cent as contemplated under section 12B(4), since assessee had paid Rs. 85,000 before date of service of assessment order, said amount was to be taken into consideration and, therefore, penalty levied was set aside
Monday, 16 June 2014
Society extending credit facilities to members only can’t be deemed as a co-op. bank to deny it sec.
IT : Where activities of assessee-co-operative society in nature of accepting deposits, advancing loans etc. were confined to its members only and, moreover, said activities were not regulated by RBI or provisions of Banking Regulation Act, assessee could not be regarded as co-operative bank' within meaning of section 80P(4) and, therefore, its claim for deduction under section 80P(2) was to be allowed
Sec. 80-IA: In absence of nexus between borrowed funds and investment in FDR, gross interest exp. to
IT: In view of substitution of section 80-IA w.e.f. 1-4-2000, where a newly established undertaking started earning profit after few years, assessee could claim deduction under section 80-IA by treating such subsequent year as initial assessment year; brought forward losses of previous years could not be reduced from eligible profits
No penalty if assessee had paid ST along with interest before issue of SCN without any intention to
Service Tax : Where Tribunal has recorded a finding that non-payment of Service Tax was without intent to evade payment of same and tax with interest was paid prior to issuance of show-cause notice, no penalty can be levied upon assessee
Penalty confirmed as seized Indian currency wasn’t subjected to VDIS and it was used for payment of
FERA : Where accused could not prove his claim that Indian currency recovered during raid was tax paid under VDIS and same was used for payment against foreign currency, penalty was to be imposed
Share application money from related party couldn’t be held as a loan transaction if share were allo
IT/ILT : Where assessee company has paid share application money to its AE, but delay occurred in issuance of share certificates, that does not mean that up to date of allotment, said transaction could be treated as international transactions of loans given by assessee to its AE
Delhi Steps Up Talks With Iran For $5-Bn Railway Export Plan
Even as New Delhi keeps a close watch on the recent unrest in Iraq, it is expediting talks with Tehran for over $5-billion worth project exports from India to Iran’s railway sector.
Official sources told FE that Tehran has agreed to seek lines of credit (LoC) from the Export-Import Bank of India (Exim Bank) in rupee for financing such railway project exports (of relatively long term in nature) from India to Iran. India had given Iran the option of choosing either using the rupee payment mechanism or the LoC.
India is exploring the possibility of helping build more railway lines in Iran -- in addition to the Chabahar railway project -- to connect their manufacturing and mining centres to their ports, the sources said. Project exports from India to Iran in the railway sector will include supplying and laying of tracks, building signaling systems, carrying out electrical work and upgrading existing rail operations. The Iranian government, according to reports, is planning to expand the country’s railway network annually by 500-1,000 km to ensure it touches 25,000 km by 2025 from around 13,000 km now.
The Exim Bank data as on January 10 shows that it had in December 2009 disbursed a $200-million general purpose LoC (with tenure of up to 8 years) to many Iranian commercial banks for financing India’s exports to Iran. The ministries of finance and commerce are in discussions on LoCs in rupee to Iran for long-term project exports, especially in the rail sector.
“Iran’s interests in expanding their rail network match our economic and strategic interests too. Once the initial projects take off, it will lead to large orders from Iran. In the near-term, we are targeting project exports in the rail sector worth at least $5 billion,” an official said. India’s motive in helping build rail links within Iran, especially to Chabahar and other ports, is that they can then be used as a gateway for accessing other Central Asian markets and Afghanistan.
Public sector companies such as Ircon International are taking forward their work on laying tracks and setting up other related equipments, while others such as SAIL, Essar and Jindal are looking at exporting steel for building railway infrastructure. Iran had also sought help from the public sector consultancy firm RITES and logistics major CONCOR for feasibility studies.
RITES has already helped to design the new locomotive overhaul workshops at Karaj and a design of rail system for sugarcane transportation for the Iran railways, while Ircon had completed a relay-based interlocking system (a signaling project) for 25 stations in Shahrood-Mashad section for $25 million during 1999-2006 and supplied signalling equipment to Iran railways worth $1.2 million in 2008.
Source:- financialexpress.com
HC denied writ petition for reference of dispute as petitioner had an efficacious remedy under Arbit
Arbitration Act : Where petitioner had an efficacious legal remedy under Arbitration and Conciliation Act for reference of its disputes to arbitration, writ jurisdiction was not to be exercised
Delhi HC not to entertain writ filed by a co. registered at Andhra Pradesh if matter has no connecti
CL: Where respondent-company had its registered office in Andhra Pradesh and investigation was conducted by SEBI, Mumbai, no part of cause of action had arisen in Delhi and, therefore, High Court of Delhi had no jurisdiction to entertain writ petition
Rise In Size Of Indian Exports Essential To Match Spill-Over Effect: Crisil
Both the domestic value added (DVA) content and the employment intensity of exports has been declining over time for India. To overcome this, a dramatic increase in the absolute size of exports was essential to match or exceed the spill-over effect of exports as seen in the past, suggested Crisil in a report ahead of new export policy.
“We analyze these patterns in comparison with China in our latest report, using the OECD value-added database”, Crisil said.
The Union Government is expected to unveil the foreign trade policy for the medium term in a few weeks. “This time around, the exports bar will need to be set much higher even to simply maintain the impact of exports on job creation and income generation”, the rating agency pointed out.
“Gross export numbers are misleading in terms of the impact they have on jobs and incomes. Broadly, the spill-over impact of exports on the domestic economy is determined by three factors – the DVA component of exports, the employment intensity of export sectors and the absolute size of exports – all of which determine the extent of job-creation”, it added.
Source:- thehindubusinessline.com
India Exempts Bhutan From Any Ban Or Quantitative Restrictions On Food Exports
The Indian government today announced that the country will exempt Bhutan from any ban or quantitative restrictions on export of items like milk powder, meat, edible oil and non-Basmati rice.
This step has been taken with a view to boosting trade ties with the neighbouring country.
India and Bhutan also agreed that they will not to allow each other’s territory to be used for interests inimical to the other.
Source:- thehindubusinessline.com
South Korea's May Iran Oil Imports Down 44 Percent On Year
South Korea's imports of crude oil from Iran fell in May from April, with its oil intake from the OPEC member in the first five months of the year holding below last year's daily average, customs data showed on Sunday.
South Korea imported 284,327 tonnes of Iranian crude last month, or 67,230 barrels per day (bpd), compared with 552,884 tonnes a month ago and 505,004 tonnes a year ago, according to the preliminary customs data.
Imports of oil from Iran often swing widely from month to month as one of South Korea's two refiners to import Iranian oil usually buys the crude only every other month.
South Korea took 2.5 million tonnes, or 121,868 bpd, from Iran in the first five months of this year, down 15 percent from 2.9 million tonnes imported during the same period in 2013 and also 9 percent less than last year's average of 134,000 bpd.
South Korea and other Asian buyers are supposed to hold their crude imports from the OPEC member at end-2013 levels - or between 1 million and 1.1 million bpd - under the terms of the Geneva accord between Iran and six major powers.
That pact took effect in January and eased some sanctions on Tehran in exchange for curbs to its nuclear program.
But as China is set to take more Iranian crude than it did before tough sanctions were put in place in early 2012, Iran's top clients - China, Japan, India and South Korea - are together expected to import around 1.25 million to 1.3 million bpd in the first half of this year, industry and government sources say.
U.S. officials say that is still within the tolerance of what is allowed by the Geneva deal because most of the overage is taken up by condensate, a light crude oil.
Six major powers - the United States, Britain, Germany, France, Russia and China - and Iran are trying to reach a final settlement on Tehran's nuclear program, although diplomats say a July 20 deadline is likely to slip.
In South Korea, only SK Energy [SKENGG.UL] and Hyundai Oilbank [INPTVH.UL] buy Iranian oil.
South Korea, Asia's fourth-largest economy, imported a total of 9.8 million tonnes of crude last month, or 2.3 million bpd, compared with 10.4 million tonnes in May last year, the customs data showed.
Final data for May crude oil imports will be released by state-run Korea National Oil Corp later this month.
Source:- reuters.com
India's May Palm Oil Imports Up 22 Per Cent M/M: Trade Body
India's palm oil imports rose 22 per cent to 654,255 tonnes in May from a month ago, a trade body said on Monday, as buyers stocked up ahead of the Muslim holy month of Ramadan when demand for the tropical oil typically peaks.
Higher purchases by the world's top vegetable oil importer should help support benchmark palm oil prices that have dropped in five out of the past seven weeks.
India's total vegetable oil imports rose 24 per cent from a month ago to 1.03 million tonnes in May, data from the Solvent Extractors' Association of India (SEA) showed.
"Refiners purchased more to build up stocks," said B.V. Mehta, executive director of SEA.
Imports of soyoil rose 54 per cent to 174,209 tonnes from a month ago, while sunflower oil imports rose to 5 per cent to 178,753 tonnes.
India mainly buys palm oil from top producers Indonesia and Malaysia. The South Asian country buys small quantities of crude soft oils, sourcing soyoil from Latin America and sunflower oil from Ukraine and Russia.
Last month, the price for imported crude palm oil (CPO) averaged $876 a tonne against $934 for soyoil and $942 for sunflower, the trade body data showed. In April, CPO was quoted at $907, soyoil $974 and sunflower oil $946.
May's total palm oil imports included refined oil of 100,605 tonnes, up 24 per cent from April as the import price in May was cheaper by $31 per tonne at $866.
Half of India's annual demand of 17-18 million tonnes of cooking oil is met through palm oil imports, while it buys about 1 million tonne each of crude soy and sunflower oil.
Souce:- economictimes.indiatimes.com
HC raps AO for making additions on estimation basis as no material was unearthed during search to ju
IT : In block assessment, no addition can be made on basis of estimation, where no material seized during search in support of making addition in respect of payment
SC/ST reservation policy isn’t applicable to appointment of members of CESTAT, rules HC
Excise & Customs : Rule 21 of CESTAT Recruitment rules saves any reservation, etc. as per order of Central Government, but, in absence of any orders of Government specifically making reservation applicable for recruitment to posts of Member (Tech.), reservation does not apply to appointment at posts of Member (Tech.)
Interest earned from investment of grant isn’t taxable if it is repaid to grantor or reduces future
IT: Where assessee received grant from Central Government and kept amount in short-term deposits in bank and further it earned interest on such deposits, since Central Government had given instruction that interest on short-term deposits either had to be refunded back to Government or to be adjusted against future grants to be released, interest earned could not be said to have accrued as income to assessee
AO can’t invoke disallowance for cash payment unless assessee gets an opportunity to prove his claim
IT: Disallowance as required under section 40A(3) can be made only if there is proper material available either in returns or records accompanying reports and after affording opportunity to assessee to prove his case
No VAT on sales of goods at duty free shops by warehouse located at Airport as it was sales in cours
CST & VAT : Where assessee was allotted duty free shops at arrival and departure terminals of Bangalore International Airport and a licence was granted to it as Private Bonded Warehouses for storage without payment of duty of goods imported from foreign countries and for sale at duty free shops, sales effected at duty free shops amounted to sales in course of import falling under section 5(2) of Central Sales Tax Act, 1956
ITAT order couldn’t be reviewed if assessee failed to produce docs relied upon by it before lower au
IT : Tribunal's order cannot be recalled on ground that on date of hearing assessee could not produce documents relied upon by it before lower authorities
No additions for undisclosed stock determined on basis of opening stock without considering sale and
IT: Assessment of stock could not be done only by considering opening stock without actually referring to sale/purchase made during year
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