IT : Where AO rejected assessee's claim for deduction under section 54F in respect of amount invested in construction of building on ground that permission from Executive Engineer, Municipality had not been obtained before construction of building, in view of fact that assessee had in fact constructed house which was evident from copy of certificate of valuation by Municipal Engineer, impugned order rejecting assessee's claim was to be set aside
Wednesday, 16 July 2014
HC denied writ petition on refund of deposit as petition had alternate remedy of arbitration
SEBI: Where petitioner, member of stock exchange, invoked writ jurisdiction for refund of security deposit at time of resigning from membership of stock exchange instead of resorting to arbitration, writ petition was not maintainable as alternative, efficacious and speedy remedy was available
Delay in requesting for listing with SEBI doesn’t lead to imposition of complete ban on listing of c
SCRA : For delay in making an application for listing, a company should not be denied benefit of listing forever
Tribunal was empowered to hear appeal in case of interest on drawback if it was allowed by it in ear
Excise & Customs : Tribunal would have jurisdiction to decide an appeal relating to interest on drawback where drawback was allowed by Tribunal
HC denies to interfere with order of ITAT as dispute related to estimation of Net Profit rate
IT: Profit of contractor depend upon various factors like place of execution of contract, accessibility of labour, raw material, etc. and would, therefore, vary from contractor to contractor
Agreement amongst parties won’t transfer ST liability from service provider to service recipient
Service Tax: Substantive and legislatively mandated liability to service tax would not be transferred from service provider of sale of space or time of advertisement to advertisers being service recipients
CCI negates abuse of dominance position by ‘Ansal’ due to presence of other real estate developers i
Competition Act : Where large number of real estate developers having all India presence were operating in relevant market, no one could be said to be dominant in relevant market and, thus, question of abuse of dominant position did not arise
TP adjustment set aside while making working capital adjustment as data of assessee-co. wasn’t analy
IT/ILT : Where in transfer pricing proceedings, TPO made certain addition to assessee's ALP in respect of import of hi-tech products from AE, in view of fact that while making said addition, TPO as well as DRP considered working capital adjustment only with respect to comparables submitted by assessee but same was not analysed with respect to data of assessee company, impugned adjustment was to be set aside and matter was to be remanded back for disposal afresh
Verdict in Satyam's case: SEBI bars 'Ramalinga Raju' from accessing securities market for 14 long ye
SEBI : Ramalinga Raju and others individually as well as acting in concert falsified books of account and mis-stated financials of Satyam Computers and, thus, portrayed a false picture of its published quarterly/annual results; they also provided false CEO/CFO certification, made various announcements and issued advertisements/press releases on basis of falsified and mis-stated financial position of company and indulged in insider trading on basis of unpublished price sensitive information (UPSI
India's Exports Up 10.22% To Usd 26.4 Bn In June
India's exports grew by 10.22 per cent to USD 26.4 billion in June this year while imports stood at USD 38.24 billion, up by 8.33 per cent, leaving a trade deficit of USD 11.76 billion, according to the Ministry of Commerce and Industry's data.
Country's exports stood at USD 24 billion in June last year while imports were at USD 35.3 billion, the data showed.
Exports in May rose by 12.4 per cent to USD 28 billion over the same month a year ago, while imports fell by 11.4 per cent to USD 39.23 billion.
In the April-June period, exports grew by 9.31 per cent to USD 80.11 billion.
Imports, however, dipped by 6.92 per cent to USD 113.19 billion during the first three months of this financial year. Trade deficit during the period stood at USD 33.08 billion.
Oil imports increased by 10.9 per cent in June to USD 13.34 billion. Non-oil imports during the month under review were up by 7 per cent to USD 24.9 billion.
Country's gold imports were up by 65.13 per cent to USD 3.12 billion in June this year from USD 1.88 billion in the same month last year.
Source:- http://ift.tt/15HW3lL
Oil Ministry Plans To Reduce Energy Imports From Gulf Countries, Turns To Russia For Fuel
The oil ministry has chalked out a strategy to gradually reduce energy sourcing from politically volatile countries in the Gulf region and explore importing natural gas from Russia, Iran and CIS countries, government sources said.
In a recent presentation to the prime minister, the oil ministry also proposed a new regime to manage oil-field contracts. In the current system the contractor recovers costs before sharing profit with the government. In the proposed system, the two sides share revenues from the day production starts. "The matter is under active consideration of the government," one source said.
Officials say the simpler new regime should minimize state interference in oil-field affairs and boost private investment, leading to higher output and better energy security.
To improve energy security, oil ministry officials say the country should avoid heavy dependence on oil and look at opportunities to import natural gas from all possible sources.
"Russia is one such potential supplier. We may import natural gas from the country either in liquid form or through a pipeline. A strategy paper is being prepared after the visit of Petroleum Minister Dharmendra Pradhan to the country last month," one government official said.
India has warm relations with Russia, which is the world's second-biggest producer of gas and third-largest producer of crude oil.
According to US Energy Information administration, oil and gas revenues account for over 50 per cent of Russia's budget revenues.
Government officials said the ambitious Iran-Pakistan-India ( IPI) pipeline could be revived after Western sanctions against the country is eased. The project was put on backburner in 2008 by the UPA government citing reasons such as project structure, delivery period of gas, pricing and pipeline security. "Iran is keen and India needs energy. The project can be revived," the official quoted earlier said.
The oil ministry is also working on oil supply diversity especially after political disturbances in Iraq, India's biggest crude oil supplier after Saudi Arabia. India committed to import about 19 million tonnes of crude oil from Iraq and is concerned about the situation in the region, another government official said.
India is planning to source crude oil from Canada after it has developed Venezuela as one of the major suppliers outside the Gulf countries.
"African oil producing countries are willing to export on long-term basis and Indian refiners are in talks with them," the official said.
"There has been turmoil in Syria, Iraq and other oil producing countries in the Middle East. We can't keep all eggs in one basket," the official said. India imports more than 80 per cent of crude oil it processes. Indian refiners processed over 222 million tonnes of crude oil 2013-14. India's domestic crude output that year was about 38 million tonnes.
Source:- economictimes.indiatimes.com
Tribunal orders pre-deposit with a direction to take re-credit as duty payable in cash was paid via
Excise & Customs : Where duty was payable in cash owing to failure to pay duty beyond 30 days and assessee had wrongly used credit, Tribunal order directing pre-deposit of duty in cash with permission to take re-credit of credit wrongly used, is valid
India Set To Pursue Steel Import Duty Row With Us
Despite a favourable order from the World Trade Organization (WTO), India is set to pursue the steel import duty case against the US. New Delhi will also review other products on which the US has imposed similar duties.
In a ruling that came late on Monday, WTO's Dispute Settlement Body (DSB) had said the US was unjustified in imposing countervailing duties (CVD) on India's exports of hot rolled carbon steel flat products. It termed the US act "inconsistent with WTO law on subsidies".
"It is a mixed judgment. The important issues have been in our favour, but there are still some issues we are not happy about," Commerce secretary Rajeev Kher told Business Standard. Kher said this is an important development. "But there are several smaller procedural issues where the decision is in favour of the US. We will continue the case further," he added.
For instance, DSB did not consider India's claim that NMDC is not a public body according to the global trading norms. This is where India is planning to ask for a re-appeal.
The steel exporters involved in the case are JSW Steel, Vijayanagar Minerals, Tata Steel and NMDC. India had dragged the US into WTO in this case in April 2012.
In its ruling, the WTO panel said the US law mandating cumulation of non-subsidised imports with subsidised imports while determining injury in a CVD investigation is inconsistent with WTO obligations. This ruling questions the validity of a number of other CVD proceedings conducted by the US on products of Indian origin.
In a statement, the Ministry of Commerce and Industry said the government is reviewing other Indian products on which the US has imposed a similar CVD based on the present judgment.
"We have to remember that the ruling does not state that the US has to remove the duties. The US has said it is weighing options, which means they can either remove the CVD or recalculate the duties, in which case Indian exports continue to remain uncompetitive in that market. The ruling, even though it has favoured India, does not mean Indian steel exports will increase in US," said Abhijit Das, head, Centre for WTO Studies, Indian Institute of Foreign Trade.
In a significant development, the WTO panel also said the US had no factual basis to hold that the grant of mining rights for iron ore and coal was a subsidy. The panel also held that the US should not have ignored market prices available in India while determining the amount of subsidies, if any.
"India or even the US can always go for another appeal and seek a resolution. This judgment shows the importance of WTO DSB in today's trade scenario," said Ram Upendra Das of New Delhi-based Research and Information System for Developing Countries.
Source:- business-standard.com
Import Duty Hike On Raw Sugar May Boost Domestic Prices: Care Ratings
The recent hike in the import duty on raw sugar from 15 per cent to 40 per cent is likely to boost the domestic prices, agency Care Ratings said in its report.
"The recent hike in the import duty on raw sugar from 15 to 40 per cent is likely to boost the domestic prices. Also, the hike in ethanol blending requirements from 5 to 10 per cent will augment the profitability of the sugar companies," Care Ratings said here.
The rising inventory level coupled with virtually no export because of relatively lower international prices since 2012-13 (October to September) led to sluggish sugar price trend till February 2014. The sugar prices was quoted at Rs 30 per kg in April 2012 and shot up to Rs 37 per kg in October 2012 and slipped to Rs 30 per kg in February 2012. The average sugar price is hovering around Rs 34 per kg in April 2014, it said.
Though measures like hike in the import duty may provide some respite to the ailing sugar industry in the short-term, the revival of the industry is still dependent on the regulatory environment.
In order to provide a viable and robust business model to the industry, the unscientific way of fixation of State Advised Price (SAP) has to be replaced with linking sugarcane procurement price with the sugar price, the report said.
The agency said that the real turnaround of the Indian sugar industry will depend much on the full implementation of the Rangarajan Committee's recommendation especially implementation of sugarcane price-sugar price linkage formula.
In a move to decontrol the industry, a Committee headed by C Rangarajan was formed which submitted its report in October 2012. The major recommendations included, dispensing with the levy sugar obligation, dismantling the present monthly release mechanism of non-levy sugar, replacement of SAP with sugarcane price-sugar price linkage formula and phasing out of sugarcane area reservation.
The industry was partially decontrolled in April 2013 by implementing the first two recommendations. However, it failed to bring in major changes with situation remaining almost same or even worse with further dip in the profitability parameters of sugar companies, it said.
Source:- economictimes.indiatimes.com
Huge Tax Evasion In Veg Oil Imports
With rising import of vegetable oils, tax evasion and other malpractices have also increased. Now trade circles reveal huge tax evasion by importers of the oils which is going uncaught. As per the estimates, in last six months Rs.150 crore of value added tax was evaded by giving wrong declaration in imports only on JNPT port in Mumbai.
According to an official from the Solvent Extractors' Association (SEA), importers import refined vegetable oil at JNPT port on high seas bases in the name of firm registered outside Maharashtra and mostly from Silvasa, M.P., A.P., U.P. etc but actually the imported oil is sold in Mumbai and Maharashtra in cash and without payment of VAT on it. Since bill of entries are in the name of parties from above places, that is hardly investigated. Another industry official said even the parties in whose name imports took place have been found to be dummy in their findings.
Only on JNPT port, in current oil year which began from November over 2 lakh tonnes is understood to have arrived and sold under this modus operandi. India's import bill towards vegetable oil has been between $10-11 billion a year and hence several non-traditional players have entered the business.
Tax avoided imported is used for illegal blending with the pure oil of higher quality and sold in market. Problem that the SEA had raised was that imported oil business is run on higher volumes and very thin margins as competition is immense. Tax evaded oil is sold cheaper which is hurting genuine players.
It is not only tax evasion that has become a peril. In last few years several players, many of them from real estate sector have opened subsidiaries for dealing in imported oils. The incentive for them to be in vegetable oil import business is quite different. For imports, trade and industry gets cheaper dollar finance for 90-180 days. However in edible oil import business, these importers sell oils at a very thin margins and get the money maximum in little over a months' time. They use cheap credit till maturity for their other businesses. This practice is popular among real estate players as interest rates prevailing in that business is much higher.
Source:- business-standard.com
India's Services Export In May Up 9 Per Cent At $13.9 Billion
India's services exports in May rose 8.8 per cent to $13.9 billion, data from the Reserve Bank of India showed.
Import of services during the month, however, rose 15 per cent to $8.03 billion, as per the RBI data on international trade in services.
Cumulative receipts, or exports, in services during April-May stood at $27.5 billion, while cumulative payments (imports) were at $16.09 billion.
Services exports in 2013-14 stood at 167.01 billion, while imports were at $88.19 billion.
The services sector contributes about 55 per cent to the country's gross domestic product.
The apex bank releases provisional aggregate monthly data on India's international trade in services with a lag of 45 days.
Source:- profit.ndtv.com
HC raps AO for denying carry forward and set off of unabsorbed depreciation beyond 8 years
IT : Reassessment deprecated as Court held that unabsorbed depreciation could be allowed to be carried forward and set off without any reference to time limit
Notices returned un-served to be delivered through other means under sec. 37C prior to ex-parte proc
Excise & Customs : Where notice sent by post is returned with postal remarks 'left', same must be tried to be served as per section 37C(1)(b) or as per section 37(1)(c) by affixing a copy on notice board of adjudicating authority; and if that is not done, consequential proceedings ex parte are invalid
Interest earned from inter-corporate loans and foreign currency account are eligible for sec. 10B re
IT: In view of substitution of sub-section (4) of section 10B by Finance Act, 2001, with effect from 1-4-2001, an assessee is entitled to claim exemption on interest income earned from inter-corporate loans and deposits lying in EEFC account
Revenue couldn’t revoke Excise registration of a Co. merely due to pendency of dues in its old name
Excise & Customs : Merely because there is a change in name of company and dues standing in old name are still pending, department cannot revoke registration
WDV of assets of local authority won’t be re-calculated on its conversion into taxable unit; book de
IT : Where assessee was enjoying exemption of income being a local authority, and with insertion of Explanation to section 10(20) by Finance Act, 2002 effective from 1-4-2003, assessee became taxable entity from assessment year 2003-04 in terms of Explanation 6 to section 43(6), amount of depreciation provided in books of account upto previous year relevant to assessment year under consideration had to be considered as depreciation 'actually allowed' and, therefore, in order to restrict claim o
HC slams revenue for attaching bank account of assessee without issuing SCN and giving hearing oppor
CST & VAT : Where Commercial Tax Officer (CTO) inspected assessee's business premises and having noticed defects in its account books forcibly collected a cheque for Rs. 3.75 lakhs from it and thereafter Assessing Authority concerned having found that department's bank had returned above cheque unrealised issued a notice to bank of assessee attaching its bank account for recovery of above amount, issue of notice to bank of assessee straightaway attaching bank account was illegal and unsustainabl
Profit on transfer of bare-shell building to co-developer after approval from authority gets sec. 80
IT : Where assessee's claim for deduction under section 80-IAB was rejected on ground that it had sold bare-shell building to co-developer which was not a permitted activity, in view of fact that Board of Approval (BOA) had granted approval for transfer of bare-shell to co-developer in accordance with relevant provisions of SEZ Act and SEZ Rules, profits arising to assessee from such an authorised transaction were eligible for deduction
Petitioner to plead before correct forum that Co. was introducing new Articles in guise of compoundi
CL : Where petitioner filed instant petition challenging order passed by CLB allowing respondent's application for compounding of defaults committed under sections 25(8) and 192 of 1956 Act, on ground that under guise of compounding application, respondent-company was seeking to introduce a new set of articles of association, petition was to be disposed of with a direction to petitioner to raise such a plea before appropriate forum
Mere non-mentioning of export invoice details in lorry receipts won’t deny legitimate ST refund on G
Service Tax : Where owing to big consignments, goods could not be transported by a single lorry from factory to port of export, then, non-mention of details of export invoice in lorry receipts is not fatal for claim of refund under Notification No. 41/2007-ST, provided other evidences for correlation are available
Unabsorbed depreciation can be carried forward beyond 8 years; Reassessment to treat it otherwise is
IT : Reassessment resorted to disallow carry forward and set off of unabsorbed depreciation beyond 8 years was declined
Display of phone numbers at bank premises proves its usage for output services; ST credit available
Cenvat Credit : Where phone numbers are displayed at branch premises as per RBI guidelines, it proves that said phones were used for providing output service and, therefore, same are eligible for input service credit
Revenue couldn’t cast doubt on sub-contract payments if sufficient evidences were available to subst
IT: Where assessee-company entrusted land development work on sub-contract to GKC which in turn paid certain amount to another company for executing a part of land leveling work, in view of fact that details of all transaction in respect of which subcontract payment had been made by assessee-company to GKC were duly recorded in payment vouchers, AO could not disallow those payments merely taking a view that company which did a part of work for GKC was non-existent company and, thus, entire payme
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