IT: Where machinery owned by assessee was leased out in course of carrying out of business, depreciation was to be allowed
Tuesday, 11 November 2014
No reassessment by AO to disallow sum paid to NR after holding that payment wasn't liable to TDS at
IT : Where Assessing Officer having considered material on record, concluded that assessee was not required to deduct tax at source while making payment to non-resident, he could not subsequently reopen assessment merely on basis of change of opinion that payment in question was to be made after deducting tax at source
Contractor not liable to pay compounded tax on labour work if he opted to pay compounded tax on comp
CST & VAT : Where a works contractor did only labour contract for one person and composite work for another person and had choosen to pay tax at compounded rate under section 8(a)(i) of Kerala VAT Act, there was no obligation to pay compounded tax for labour work, but in respect of composite work compounded tax had to be paid
Creche constructed in factory compound to increase efficiency of women employees was depreciable at
IT : Creche building constructed within compound of factory for purpose of increasing efficiency and productivity of women employees is part of factory building eligible for 10 per cent depreciation
No sec. 41(1) addition as assessee had acknowledged trading liability and settled it in subsequent y
IT : Where assessee had acknowledged liability for purchases and such liability in subsequent years was either settled by returning goods or by making payment by account payee cheques, liability had not ceased so as to make addition under section 41(1)
Principal CITs/CITs get power to grant Sec. 10(23C) approval; CITs get more time for deciding on Sec
IT : Income-Tax (Eleventh Amendment) Rules, 2014 – Amendment In Rules 2C, 2CA, 11AA, Form 10A, Form 56 and Form 56D
AO with equivalent designation can invoke Explanation 3 to sec. 43(1) without seeking previous appro
IT : Where Tribunal set aside order of Assessing Officer holding that he had not obtained approval of Deputy Commissioner before applying Explanation 3 to section 43(1), in view of fact that at relevant time previous approval of 'Inspecting Assistant Commissioner' was required to be obtained and since Assessing Officer himself was IAC, impugned order passed by Tribunal was to be set aside
SC admits appeal on issue of deduction of wharfage charges in computing value of Custom House Agent
Service Tax : Supreme Court admitted appeal against Tribunal order holding that wharfage charges are eligible for deduction from gross receipts, for determining value of Customs House Agent's Services
Amalgamated-Co. could file oppression plea even when its name wasn't appearing in register of transf
CL: Where shares were transferred to transferee company by virtue of amalgamation, it was entitled to institute oppression and mismanagement petition even though its name was not appearing in register of members of respondent-company
Proviso to sec. 113 levying surcharge in cases of block assessment is prospective; SC dismisses SLP
IT : Insertion of proviso to section 113 could not be said to be clarificatory in nature as prior to its insertion there was ambiguity with regard levy of surcharge in case of block assessment. Thus, proviso to section 113 levying surcharge in cases of block assessment was effective prospectively
I-T offices to remain open on Nov 15, 2014 for conducting admin work to implement restructuring of j
IT : Section 119 of The Income-Tax Act, 1961 - Income-Tax Authorities - Instructions to Subordinate Authorities – Income Tax Offices Throughout India to Remain Open on 15-11-2014 During Normal Office Hours for Conducting Administrative Work Related to Implementation of Restructuring of Jurisdiction Across the Country
CBDT reconstitutes DRP at Chennai and Ahmedabad
IT/ILT : Section 144C of The Income-Tax Act, 1961 - Dispute Resolution Panel (DRP) - Reference to - Reconstitution of DRP at Chennai
As China Demand Slows, Indian Iron Ore Imports Surge To Record
India's iron ore imports jumped to a record 5 million tonne in April-October, industry data showed, as a deepening shortage at home forced steelmakers to turn overseas for the raw material.
Gathering momentum in Indian imports should absorb some of the global surplus of iron ore and help stabilise prices that have been hammered by slowing demand from top buyer China.
But analysts warned that shipments to India, a country that holds vast reserves of iron ore and which was once the world's No. 3 supplier, would not wholly make up for the drop in Chinese appetite or fuel a sharp rebound in global prices from their lowest since 2009.
India imported 5.06 million tonne of iron ore in the first seven months of the fiscal year ending in October, according to data emailed to Reuters by industry consultancy SteelMint. The firm tracked shipments from 17 major ports.
Data collected separately by consultancy OreTeam puts April-October imports at 4.9 million tonne.Official government data only covers April-August, with imports totalling 2 million tonne.
Mining curbs due to court action against illegal mining have constricted iron ore supply in India.That, along with falling global prices, has stoked rising imports, which topped 2 million tonne in October alone, said SteelMint, predicting the total for the full year to March could reach up to 11 million tonne.
"We are expecting steel demand to pick up around January and that could trigger another round of strong imports of iron ore," said Prakash Duvvuri, head of research at OreTeam.
Nearly half the April-October imports were from South Africa, with just over 1 million tonne from Australia and Brazil, SteelMint data showed. JSW Steel Ltd, India's No. 3 maker of the alloy, led the list of importers with 3.7 million tonne purchased.
JSW said in September it was planning to import 10 million tonne or more this fiscal year if the domestic shortage continued and prices stayed low.
Other importers included Tata Steel, with more looking to follow."We may be forced to import anytime now. Depending on prices and all, we will buy 50,000-60,000 tonne. Based on how well we manage logistics and other things, we may then continue and increase," said R K Goyal, managing director of Kalyani Steels Ltd. The company has not imported iron ore before.
Global iron ore prices have fallen below $76 a tonne, losing 44% of their value this year amid a deep supply glut.Citigroup on Tuesday slashed its 2015 price forecast to $65 from $80
Source:- business-standard.com
Government May Reserve 20% Imported Gold For Small Players
The government is considering a proposal to reserve 20% of gold that importing bodies sell in the market for small jewellers, according to an official, a move seen creating a level playing field in the industry. The move follows a petition filed in the Delhi High Court by the Delhi Bullion and Jewellers Welfare Association (DBJW).
The petition argues that gold import rules framed by the UPA government favour large trading organisations, and that they are forced to pay huge premium to procure the yellow metal.
The court had directed the government to look into the matter. "Currently, banks give preference to old and loyal customers while state agencies follow some other criteria, so we are trying to evolve some common principle or guidelines that will provide a fair play to smaller players", said an official of the Directorate General of Foreign Trade (DGFT). "We have had stakeholder consultations and have invited comments, based on which we will evolve guidelines though consensus."
In its petition, the DBJWA said banks and nominated agencies were given access to the local market as long as they made a fifth of the gold they imported available for export.
A large section of gold traders allege that most of this gold is picked up by the big jewellers, leaving the small players with no option but to pay huge premium to procure the metal.
Another official said that under the formula being considered, banks and star trading houses that have the Reserve Bank's mandate to import gold will have to earmark 20% of the gold imported for domestic usage by the small and marginal players.
At present, gold is made available to traders in accordance with the 80:20 rule, which says that importers must re-export a fifth of the gold bullion shipment before taking delivery of the next.
To check the widening current account deficit, the UPA government had raised the import duty on gold to 10% from 2% in stages, and also said 20% of every consignment of imported gold had to be exported, with only select banks allowed to import the metal.
The import restrictions, however, led to the CAD falling to 1.7% of GDP in 2013-14, against 4.7% in the previous fiscal.
Talking to ET, DBJWA general secretary Prem Prakash Sharma said, "The court had directed the ministries of finance and commerce, the DGFT and others to file a reply with issues that prompted them to allow a handful of star trading houses to import gold into India. Following this directive, there had been a series of meetings with the finance ministry and the Reserve Bank of India. In the last meeting with the DGFT, a formula has been worked out to tide over the present situation."
Pankaj Parekh, vice-chairman of Gem & Jewellery Export Promotion Council, said, "If a country's gold consumption is 950 tonnes, and only 400 tonnes are being imported, there is bound to be a premium. So those who can afford to give a premium get it, and small and marginal players feel left out.
The DGFT has found out a way and it will soon be incorporated." The modalities of the new formula are being worked out by a committee headed by Parekh. The committee includes members of banks and star trading houses.
Source:- economictimes.indiatimes.com
Sum paid by an electricity Co. for transmission of electricity won’t attract sec. 194-I TDS
IT : Section 194-I could not be invoked in respect of payments made only for transmission of electricity rather than for the use of transmission lines per se.
CCI imposed penalty on jute manufactures for forming cartel and fixing sale price by issuing daily p
Competition law : Commission imposed penalty upon opposite parties i.e., jute manufacturers for their anti competitive practices of forming a cartel and fixing sale price of jute packaging material by issuing daily price bulletin
Certificate of incorporation/PAN didn't prove identity of shareholder-Cos if evidence showed them as
IT : Certificate of incorporation, PAN etc., are not sufficient for purpose of identification of shareholder when there is material to show that shareholder was a paper company and not a genuine investor
Consignment agent not engaged in clearing and forwarding work not liable to service tax prior to 10-
Service Tax : A consignment agent who has not been entrusted work of clearing and forwarding, cannot be classified under Clearing and Forwarding Agent and would not be liable to service tax prior to 10-9-2004, from when he would be liable to service tax as commission agent
Penalty upheld as assessee didn’t show reasonable cause for receiving cash deposit in contravention
IT: Where reasonable cause for receiving loan or deposit in cash was not established by assessee, levy of penalty under section 271D was to be upheld
RBI curtails limit of financial assets in factoring business and income of factoring business for NB
NBFCs : Review of The Non-Banking Financial Company – Factors (Reserve Bank) Directions, 2012
RBI lays stricter norms for NBFCs: raises limit of Net Owned Fund and capital adequacy requirement
NBFCs : Revised Regulatory Framework For NBFC
Definition of 'job work' in exemption notification couldn't be used if its definition wasn't given i
Excise & Customs : In absence of any definition of 'job-worker' in erstwhile Modvat Rules (Central Excise Rules, 1944), definition of job-worker under a particular exemption notification cannot be used for purposes of Modvat rules
AO couldn't make addition on estimated basis without rejecting books of account
IT : Without rejecting books of account addition on estimate basis was not justified
Recovery proceedings kept in abeyance as Joint Commissioner didn't proceed with revision petition of
CST & VAT: Where against order of assessment, assessee filed revision petition alongwith stay petition and Revisional Authority did not proceed with matter and in mean time Assessing Authority directed assessee to pay arrears of tax due, recovery proceeding were kept in abeyance and Revisional Authority was directed to dispose of stay petition on merits
Income from sale of shares was taxable as capital gain when transactions of sale/purchase were spora
IT : Where assessee was not regularly purchasing and selling shares in a systematic manner and no borrowed fund had been used by him for such purpose, gain on purchase and sale of shares would be treated as short-term capital gain
Compounding fee paid to municipality on deviation from sanctioned plan was in nature of penalty, dis
IT : Amount paid by assessee to Municipal Corporation on account of compounding fee as compensation for condoning deviations from original sanctioned plan being in nature of penalty would not be allowable as deduction in view of Explanation to secton 37(1)
No rebate if goods weren't exported within 6 months after clearance from factory and time-limit wasn
Excise & Customs : Where goods were not exported within 6 months from date of export but were exported thereafter and assessee could not produce any extension of said time-limit, rebate claim under rule 18 could not be allowed
No oppression plea alleging violation of non-compete clause if assessee had arbitrational remedy to
CL: Where shareholders' agreement and Articles of Association of company clearly provided remedy for violation of non-compete clause by referring parties to arbitration, company-petition alleging oppression and mismanagement was to be dismissed
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