IT : Evidence/material which is not found at time of search or as a result of requisition of books of account or other document, cannot be made basis for determination of undisclosed income under section 158BB
Wednesday 25 June 2014
Bank couldn’t be held as assessee-in-default for TDS default if customer pays taxes on his interest
IT: Where payees had included interest income earned from assessee-bank in their total income and paid tax thereon, assessee bank could not be considered as in default in terms of section 201(1) for short deduction of tax on such interest income
SC: No percentage based credit reversal was required on generation of exempted by- products during m
Cenvat Credit : Sulphuric acid arising in course of manufacture of zinc is a by-product and even if it is exempt, percentage payment based credit reversal at 8% of sale price thereof under rule 57CC is not applicable
Filing of a compliant before SEBI couldn’t render proceedings before CLB an abuse of law
Company Act: Scope of provisions before CLB and SEBI are different and independent of each other and they are not mutually exclusive but are cumulative; thus proceedings before SEBI regarding conduct of affairs of company would not render proceedings before CLB an abuse of process of law
AO can’t act in violation of directions of DRP that TP additions had not to exceed global profit of
IT/ILT: Every direction issued by DRP shall be binding on Assessing Officer, thus, where Assessing Officer had failed to take into consideration directions of DRP that TP adjustments shall not exceed global profits earned by assessee-company, matter was to be remitted to file of Assessing Officer to recompute Transfer Pricing Adjustment, duly complying with directions of DRP
New Annual Return Form MGT-7 isn't applicable to Cos whose financial year ended on or before 31-03-2
COMPANIES ACT 2013 : Section 92 of The Companies Act, 2013 - Annual Return - Clarification on Format of Annual Return Applicable for Financial Year 2013-14 And Fees to be Charged by Companies for Allowing Inspection of Records
Riding High On A Variety Of Exotic Fruits
In May agents of traders, mostly from Tamil Nadu, visit the households in the villages, booking trees of mangosteen, rambutan, pulasan, and durian, even in the early flowering stages, at competitive prices.
The water-rich river basins of the Pampa, Manimala and Achencoil in the district are suitable for the cultivation of the tropical fruit trees. The legendary Malayalam writer Vaikom Muhammad Basheer had celebrated mangosteen in his work ‘Under the Mangosteen Tree’. The small village of Eraviperoor near Thiruvalla is known as the heartland of mangosteen in Central Travancore.
Traders say Pathanamthitta provides a major share of the State’s mangosteen production and more than 60 per cent of the district’s mangosteen crop comes from Eraviperoor and the surrounding villages.
P.V. Chacko of Plavelil in Eraviperoor owns one of the major and richest mangosteen gardens in the region. It was P.C. Varkey, grandfather of Mr. Chacko, who had introduced mangosteen to Eraviperoor, almost a century back, according to the villagers. A 95-year-old mangosteen tree grown by him is still standing in full bloom in the garden of Plavelil house.
Keeping strong faith in the monetary prospects of this Malaysian fruit, Varkey had left his teacher’s job to concentrate on exotic fruit farming. He took much pain, exploring the market for mangosteen in Tamil Nadu, besides popularising its cultivation in his own village. He had replaced his one-acre rubber plantation with mangosteen. The present generation of this visionary peasant has now started reaping the fruits of his hard work, says his grandson.
Mr. Chacko, now has 60 fruit-bearing mangosteen trees, 20 pulasan trees, and a few durian trees in his garden. He had sold mangosteen worth Rs.9.5 lakh last year. A 65-year-old durian tree in his garden gives 600 to 800 fruits a year. He sold durian fruits worth Rs.97,000 this year. He also gets handsome revenue from the pulasan trees as well as from his nursery that sells good quality saplings.
Native to Malaysia, Indonesia and Brunei, durian is distinctive for its size, unique odour, and thorny cover.
Durian costs Rs.400 to Rs.500 a kg in Indian market while it costs as much as $12 in the U.S. where it is used for preparing juice, says Dr. Thomas P. Thomas, Associate Professor in Botany at Kozhencherry St. Thomas College.
Rambutan too has its origin in Indonesia which is cultivated extensively in Malaysia, the Philippines, Thailand, India, Australia, and Sri Lanka. Flesh of this small, red-and-yellow fruit with spiky hair on the skin is sweet and juicy. Rich in carbohydrates, protein, vitamin-C, fibre, etc., rambutan is also used as a traditional medicine in Malaysia and Indonesia, says Dr. Thomas. Rambutan costs Rs.150 to Rs.200 a kg in the Kerala market.
Pulasan closely resembles rambutan and is sometimes confused with the latter. The juicy flesh of this Malaysian fruit is more sweet and it separates easily from the seed, which is also edible.
Cultivation of pulasan is picking up in Eraviperoor and the surrounding villages as people are realising its export potential.
Konni is known as the marketing hub of various Malaysian fruits collected from different parts of the district. Ponnachan, a trader from Konni, says that the mangosteen, pulasan, rambutan and durian collected from different parts of the region were transported in bulk to Thenkasi and Chennai. Mangosteen that costs Rs.250 to Rs.300 a kg in Kerala retail market is sold at Rs.400 to Rs.550 outside the State, he says. K.K. Gopinatha Kurup, retired college principal, is of the opinion that the State government should extend a helping hand to the farmers who are at the mercy of the agents of traders from Tamil Nadu for the marketing of these exotic fruits having very high export potential.
Source:- thehindu.com
Cotton Market Rates Depressed Amid Fresh Arrivals
Slight improvement in arrivals of seed cotton pushed the rate lower on the local cotton market on Tuesday, dealers said. The official spot rate was lower by Rs 50 to Rs 6,750, they added. The seed cotton from Sindh drifted lower, shedding Rs 100 to Rs 3050-3100 and in the Punjab rates of phutti lost the same amount to Rs 3200-3300 per 40 kg, they said.
In the ready session, about 2000 bales of cotton changed hands between Rs 6400-6600, but in late evening, prices came down further, they said. Commenting on the latest trend in the market, cotton analyst, Naseem Usman who returned from Makkah and Madina after performing Umrah said that unsold heap of yarn is causing a high concern among cotton traders, some experts said. He said that quality of seed cotton is good, but the major buyer (China) is not active because fluctuations in rates of yuan are making imports more expensive. Prices of cotton in India are stable, local cotton traders were expecting that monsoon rains may be favourable for standing crop, other experts said.
Front-month cotton futures in New York fell the daily limit in the final moments of trade on Monday, hitting a two-week low of 84.16 cents a lb as traders raced to exit positions ahead of an expected large delivery against the July contract.
The front-month July contract fell 4 cents a lb ahead of the notice period for cash delivery against the contract, which begins on Tuesday. The big drop came after the settlement window. The July contract closed down 0.64 cent, or 0.7 percent, at 87.52 cents a lb as trading volumes picked up.
The most-active December cotton contract on ICE Futures US closed up 0.6 cent, or 0.8 percent, at 77.68 cents a lb after rallying to a one-week high of 77.90 cents a lb. The following deals were reported: 200 bales of cotton from Golarchi at Rs 6400, 600 bales from Tando Mohammad Khan at Rs 6400-6600, 600 bales of cotton from Mirpurkhas at Rs 6425-6450 and 400 bales from Shahdadpur at Rs 6500, dealers.
Source:- brecorder.com
AO is to abide by SetCom's order; he can only raise consequential demand to give effect to same, say
IT: Assessing Officer cannot go beyond order passed by Settlement Commission and it is only a consequential demand that can be raised by Assessing Officer while giving effect to order passed by Settlement Commission
No reduction of sundry receipts from income declared in search if assessee failed to substantiate su
IT: Where assessee claimed to set-off certain amount toward miscellaneous receipt but failed to produce any material to support claim with regard to miscellaneous receipts and also failed to maintain true and correct account, setting off could not be allowed
Banks allowed to appoint NBFCs as business correspondents
BANKING : Financial Inclusion by Extension of Banking Services - Use of Business Correspondents
India’S Rice Dump May Impact Local Exports
With the Indian government set to inject five million tonnes of rice in to its domestic market, Cambodia’s rice producers fear that any spillover into the global rice trade may impact local exports.
According to a June 18 Bloomberg report, India intends to dump about a quarter of its rice stockpiles into the country as soon as possible, to curb inflation caused by lower crop yields brought on by lower rainfall during the monsoon season.
David Van, acting secretary-general of a newly established Cambodia Rice Federation, said the extent of the effects of five million additional tonnes of rice into the Indian market is hard to measure at this time. But he acknowledged that India’s move could effect how much of the grain Cambodia is capable of exporting.
“Should the Indian government indeed pour more volume into the global rice trade with softer prices, the global market prices would certainly be affected as prices could continue to soften, thereby driving further to the edge Cambodia’s ability to export,” he said.
Van added that India’s long grain white rice would be the main competitor for Cambodian rice exports.
According to data from the Ministry of Agriculture, Cambodia exported 120,300 tonnes of milled rice over the first four months of the year, of which fragrant rice accounted for 52 per cent, while long grain white rice made up 41 per cent.
Khan Kunthy, a local rice miller and exporter was also concerned with India’s plans to inject rice into the market.
“More or less it will affect the global price as there will be more supply in the market. But I think it will not affect our fragrant rice but our long grain white rice,” Kunthy said yesterday.
India was the world’s top rice exporter in 2012 and 2013.
According to data from the Agricultural and Processed Food Products Export Development Authority in India, the country exported a total of 10.78 million tonnes of rice in 2013-2014 financial year.
The exporting period, which runs from April 1 2013, to March 31 2014, was up by about 6 per cent from close to 10.15 million tonnes exported in the same period the year before.
Source:- phnompenhpost.com
India's Beef Exports Rise 31% In 2013-14
Beef has become an important foreign exchange earner for India among the agriculture commodity exports after basmati rice, with 31% increase in quantity and 52% rise in value terms during 2013-14. India was ranked second largest beef exporter in the world with 20% market share after Brazil by the department of agriculture of the United States (USDA) in its recent report.
Curiously, India's beef exports comprise almost entirely water buffalo meat (carabeef) as cow slaughter is banned in most places. As per the figures of Agricultural and Processed Food Products Export Development Authority (Apeda), the beef exports totaled 14,49,759 tonne worth Rs 26,458 crore last year. The country exports mostly to South East Asian and Middle East countries. In the previous year, the growth in quantity and value was 12% and 27% respectively.
"The main reasons for increased growth in exports are the emergence of more state-of-the-art abattoirs and price competitiveness of our meat. India's buffalo meat is cheaper and is bought by Asian countries," says Apeda chairman Santosh Sarangi. Unlike India, the western countries export both cow and buffalo meat. Perhaps because of the taste difference, the US and the Europe hardly buys Indian beef. Huge markets like China and Russia have not opened their market to Indian beef. "Bovine meat import is included in the trade agreement signed between India and China.
They sought some technical clarifications which we have provided," Santhosh Sarangi adds. With the opening up of Chinese market, beef export from India could see a big jump. The fact that India has a huge buffalo herd population and supplies halal meat has worked to its advantage. "Most of the major brands like Al Kabeer buy our products," says Mir Ali of Quereshi International, based in Hyderabad. Vietnam is the largest buyer of Indian buffalo meat, followed by Malaysia, Egypt, Thailand and Saudi Arabia.
However, the exporters declined to comment when asked whether they expect any change in the policies regarding export of buffalo meat from the new government. Prime Minister Narendra Modi had criticised the previous government for the rising meat export and cow slaughter, which he referred as pink revolution, during his election campaign.
USDA has projected India's beef shipments to touch 1.9 million tonne in 2014. It states that a more favourable demand outlook for a wide range of countries will stimulate greater shipments from Brazil and India, which will offset the downward revision in production in Europe and Australia.
Source:- economictimes.indiatimes.com
Indian Rupee Down 19 Paise Against Us Dollar
The Indian rupee weakened by 19 paise to 60.32 against the US dollar in early trade today at the Interbank Foreign Exchange market on high demand for the American currency from importers.
Forex dealers said though increased demand for the US currency from importers put pressure on the rupee but a higher opening in the domestic equity market and the dollar’s weakness against other currencies overseas, capped the losses.
Yesterday, the rupee strengthened by seven paise to close at 60.13 against the US currency on the back of a sharp rise in local equities, following a drop in global crude oil prices.
Meanwhile, the benchmark BSE Sensex rose 58.90 points, or 0.23 per cent, to 25,427.80 in early trade today.
Source:- indianexpress.com
Duty drawback allowable on re-export of goods if ‘let export order’ was passed within 2 years of pay
Excise & Customs : For drawback on re-export under section 74, 'let export order' under section 51 must have been passed within 2 years from date of payment of duty
Asset acquired under sale and lease back transaction with payment of rent held as 'sham'; no depreci
IT-I : Where assessee having purchased lanterns from PHOTON, alleged by leased out same to third parties, in view of fact that amount paid to PHOTON was received back instantaneously in form of advance lease rent, revenue authorities rightly concluded that transaction in question was sham and, therefore, assessee's claim for depreciation in respect of leased out assets was to be rejected
Long term capital loss once accepted by revenue couldn't be reduced subsequently in year of set off
IT : Long term capital loss determined and accepted by revenue in relevant assessment year could not be reduced in year where assessee had claimed only set off assessed and determined loss
Unjust enrichment was absent if duty was paid by assessee after clearance of goods and on insistence
Excise & Customs : Where assessee has paid duty after clearance of excisable goods and that too, on insistence of Anti Evasion Branch of Department, burden of duty was not passed onto its customers and, therefore, unjust enrichment was inapplicable
In case of sale of an under construction building, projected cost of completion to be taken as cost
IT : Capital gains arising out of sale of property under construction is to be computed by taking projected cost of construction and not merely on cost till date
CLB dismissed oppression petition as subject matter of alleged complaint was already brought to an e
CL: There must be continuous act on part of majority shareholders, continuing upto date of petition, showing that affairs of company were being conducted in a manner oppressive to some part of members
HC upheld interim order of revisional authority to stay collection of 50% of disputed tax
CST & VAT: Where Appellate Authority rejected assessee's application for stay of recovery of disputed tax and on revision preferred by assessee, Revisional Authority stayed collection of 50 per cent of disputed tax, since order of Revisional Authority was only interim order pending appeal before Appellate Authority, it did not warrant interference
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