IT : Section 120(1) and (2) of The Income-Tax Act, 1961 - Income-Tax Authorities - Jurisdiction of – Supersession of Notification No. SO 777(E), DATED 11-10-1990
Friday 14 November 2014
No capital loss on writing off advances given to other cos, as such advances couldn't be construed a
IT : No capital loss on writing off advances given to other cos, as such advances couldn't be construed as capital assets
Assessee couldn't file review application in guise of rectification to criticize the order passed by
IT: Where assessee was seeking a mere review and not rectification of any obvious and patent mistake apparent from record, an application under section 254(2) could not lie against an order passed under section 254(2) rejecting earlier application for rectification of order passed under section 254(1)
Pre-deposit can be waived in strong prima-facie case even if assessee doesn't plea for undue hardshi
Excise & Customs : When a strong prima facie case has been made out by assessee, Tribunal ought to grant an order of stay without condition of pre-deposit, even if 'financial hardship' had not been shown to exist or proved by acceptable evidence.
Existing units which got converted into STP units after fulfilling prescribed conditions would get s
IT: Even existing DTA units which get converted into STP unit could get benefit under section 10A
No revision by CIT due to brief order issued by AO if he had allowed claim after examining materials
IT : Where Assessing Officer allowed assessee's claim for additional depreciation on windmills and machinery after taking into consideration relevant material on record, there being no infirmity in said order, impugned revisional order passed by Commissioner deserved to be set aside
MCA further extends validity of Company Law Settlement Scheme upto December 31, 2014
COMPANIES ACT, 2013 : Section 92 of The Companies Act, 2013 – Annual Return - Company Law Board Settlement Scheme, 2014 – Extension of said Scheme up to 31-12-2014
Operating profit ratio has to be taken as 'PLI' for computing ALP of goods Purchased from AE
IT/ILT : Where assessee entered into controlled transaction of purchase of goods from AE, operating profit to operating revenue be taken as PLI for Transfer Pricing Analysis
Order of Tribunal was set aside as it was passed without considering directions of High Court
Excise & Customs : Where Tribunal had not considered a judgment directed to be considered by High Court, Tribunal order was liable to be set aside and matter was remanded back to Tribunal for consideration afresh
Even if application is pending before DRT, winding-up plea to be dismissed as respondent defended pe
CL: If against winding up petition of creditor there was a substantial defence which required investigation, winding up petition must fail; it makes no difference that petitioning-creditor had a pending application before DRT
Principal Directors General, CITs, Directors General and Chief CITs shall be subordinate to CBDT: Fi
IT : Section 118 of The Income-Tax Act, 1961 - Income-Tax Authorities - Control of - Notified Subordinate Officer - Amendment in Notification No. SO 359, Dated 30-3-1988
CBDT directs DGIT, Principal CITs, Chief CITs and CITs to exercise powers in respect of notified jur
IT : Section 120(1) and (2) of The Income-Tax Act, 1961 - Income-Tax Authorities - Jurisdiction of - Supersession of Notification No. SO 822(E), Dated 23-8-2001
CBDT revises cases or classes of cases in respect of which CIT (Exemptions) can exercise powers
IT : Section 120(1) and (2) of The Income-Tax Act, 1961 - Income-Tax Authorities - Jurisdiction of - Amendment in Notification No. SO 2754(E), Dated 22-10-2014
CBDT reconstitutes jurisdictions of Director General, Principal Directors and DITs (Investigations)
IT : Section 120(1) and (2) of The Income-Tax Act, 1961 - Income-Tax Authorities - Jurisdiction of - Amendment in Notification No. SO 1189(E), Dated 3-12-2001
CBDT empowers Principal Chief CIT, Chief CIT and CIT of International Taxation to distribute work am
IT/ILT : Section 120(1) and (2) of The Income-Tax Act, 1961 - Income-Tax Authorities - Jurisdiction of - Amendment in Notification No. SO 2816(E), Dated 3-11-2014
CBDT directs ACITs and JCITs to exercise powers and perform functions of AOs in respect of notified
IT : Section 120(1) and (2) of The Income-Tax Act, 1961 - Income-Tax Authorities - Jurisdiction of - Supersession of Notification No. SO 889(E), Dated 17-9-2001
Honda Cars India Eyes Breakeven And Profits Much Before March 2017
Japanese automobile maker Honda Cars India, which had sacrificed short-term profits as it built scale through new products and ramped up manufacturing capacities, now eyes breakeven and profits much before March 2017, indicated its president and chief executive Hironori Kanayama.
Currently, focusing predominantly on the domestic market and exporting less than 4% from two of its India facilities, the company will also explore the option of making India an export hub based on emerging opportunities in the African market.
Honda Cars, which had halved its losses to Rs 479 crore in 2013-14 with accumulated losses at Rs 1,848 crore, is upbeat on the prospects of the Indian market, especially after the encouraging response to its recent new launches. The automobile manufacturer has more than doubled its revenue by posting 83% growth in volumes at 1.3 lakh units during the fiscal to March 2014. It has now set a larger business goal of achieving sale of 3 lakh units a year by March 2017.
Kanayama told ET in Hyderabad on Thursday, that his company bucked the trend and posted over 80% growth in sales last fiscal when the Indian market actually declined. "We are confident that we can achieve growth much faster than the market.
Source:- economictimes.indiatimes.com
Cap on investment in FDs raised to Rs. 1,50,000 to keep it in sync with revised limits of Sec. 80C
IT : Bank Term Deposit (Amendment) Scheme, 2014 – Amendment in Para 3
Capital gain is taxable on completion of transfer of asset and not on receipt of consideration
IT : When transfer of capital asset is complete, sale consideration has to be taken into consideration for purpose of assessment even though payment of consideration deferred till other assessment year
Refund claims can't be denied without granting personal hearing to assessee
Excise & Customs : Refund claims cannot be rejected/denied or an adverse order in that matter cannot be passed without first giving a personal hearing to assessee; hence, order denying personal hearing on pretext of delay was quashed
India Says May Stop Thermal Coal Imports In 2-3 Yrs
India, the world’s third-largest buyer of overseas coal, may be able to stop imports of power-generating thermal coal in the next three years as state behemoth Coal India steps up production, the country’s power and coal minister said.
Prime Minister Narendra Modi’s government has asked Coal India, the world’s largest miner of the fuel, to more than double its output to 1 billion tonnes by 2019 to feed existing and upcoming power plants.
Modi has promised round-the-clock power to all Indians by 2022 and recently announced the nationalised coal industry would be opened up to allow private firms to compete with Coal India, which accounts for 80 percent of the country’s output.
Declining shipments to India would drag on global coal markets grappling with oversupply as top consumer and importer China tries to shift towards cleaner fuels.
“I’m very confident of achieving these targets and am very confident that India’s current account deficit will not be burdened with the amount of money we lose for imports of coal,” Power and Coal Minister Piyush Goyal told a conference on Wednesday.
“Possibly in the next two or three years we should be able to stop imports of thermal coal.”
Coal generates three-fifths of India’s power, but a shortage of the fuel means millions still go without electricity and power cuts are common.
Around 60 of India’s 103 power plants had enough coal for less than a week’s usage as of Nov. 2 due to lower supplies from Coal India.
Imports of coal have been surging as a result, equating to about 1 percent of India’s economy.
Shipments rose to 168.4 million tonnes last fiscal year, and the government estimated earlier this year that the domestic shortage would range between 185 and 265 million tonnes by 2016/17.
And some analysts were sceptical the country would be able to end imports soon.“India’s reliance on imports is not going away anytime soon,” said Prakash Duvvuri, head of research at consultancy OreTeam.
Source:- hellenicshippingnews.com
Skyrocketing Gold Imports In October Prompts Government And Rbi To Review Restrictions
India's gold imports rocketed in October, accelerating the trend in the third quarter of 2014 and prompting the government to consider restrictions on shipments as they have a bearing on the country's current account.
However, the World Gold Council said trade restrictions will encourage smuggling, which is already rising alarmingly. It estimates that about 200 tonnes of the yellow metal would be smuggled into the country this year, which is a huge amount for a country that bought 825 tonnes last year.
October gold imports are estimated to have jumped to 148 tonnes, rising six-fold from less than 25 tonnes in the same month last year. Imports in the September quarter were up 39%.
Top officials of the finance ministry and the Reserve Bank of India met on Thursday to consider tightening import controls on gold. They agreed to meet again in a few days to take a decision, official sources said. "We have not yet taken any decision and will meet in a day or two to continue the discussion," said a finance ministry official.
The government had clamped down on gold imports last year stipulating that nominated agencies could import gold on the condition that 20% of the consignment would be exported.
The scheme, commonly referred to as the 80:20 scheme, was relaxed in May this year when RBI allowed star and premier export houses to import the commodity. Banks and nominated agencies were also allowed to provide gold for domestic use as loans to jewellers and bullion traders. Last year, the government had increased the gold import duty to 10% to check widening current account deficit.
Net gold imports into India stood at 204 tonnes in the third quarter, up 124% from 91 tonnes in the same period a year ago. But last year's figure was artificially low because of government curbs.
Jewellery demand by India during the quarter stood at 182.9 tonnes, 16% higher than the demand from Greater China, including Hong Kong and Taiwan. Demand for bars and coins by the country during Q3 was higher at 42.2 tonnes compared with Greater China's 37.1 tonnes.
The World Gold Council, the global gold miners' lobby, says smuggling is an "unintended" consequence of the government's curbs on imports.
"The demand for gold in the country is not speculative and the restrictions have had unintended consequences, like encouraging smuggling," said Somasundaram PR, MD (India), World Gold Council.
"We estimate that over 200 tonnes of total gold imports this year would be unofficial." Last year, India imported 825 tonnes. In the year through September, imports amounted to 525 tonnes. Demand usually rises in the fourth quarter of the calendar, which coincides with the festive season.
Referring to the 80:20 scheme, Somasundaram said exports of handcrafted jewellery to countries in the Middle East and South-east Asia, which comprise a sizeable portion of the diaspora, were not "visibly" apparent. "If India exports 20%, you should typically see a lot of activity in places such as Dubai and South-east Asia, which does not seem very apparent."
In rupee terms, the average price of gold at Rs 25,452.4 per 10 gm during the quarter was 6% lower than a year ago.
Source:economictimes.indiatimes.com
Share application money couldn't be treated as loan/deposits to trigger provisions of deemed dividen
IT : Merely because shares were issued belatedly in subsequent year, share application money cannot be treated as loan or deposits or advance for invoking provisions of section 2(22)(e)
Department can't adjust unconfirmed demand against refund payable to assessee
Service Tax : While confirmed demand can be adjusted from amount of refund, there is no provision to adjust unconfirmed demand from amount of refund
Gains on renouncement of right of ESOP within 36 months of offer would give rise to short-term capit
IT : Where assessee acquired rights to purchase shares under ESOP which was a capital asset and he transferred said right within 36 months of offer, period of holding of right in question being less than 36 months, gain arising from transfer of said right was to be assessed as short-term capital gain
HC stayed recovery proceedings as appeal for condonation of delay was pending before Tribunal
Excise & Customs : Where assessee's applications seeking condonation of delay and stay of demand were still pending before appellate authorities viz. Tribunal as well as Commissioner (Appeals), High Court stayed recovery proceedings
A brief assessment order couldn’t be held as erroneous even if there was legal requirement to give d
IT : Writing an assessment order in detail may be a legal requirement but order not fulfilling this requirement cannot be said to be erroneous and prejudicial to interest of revenue
No penalty on claiming deduction of unpaid leave encashment exp. if full disclosure was made in retu
IT : Where assessee-society treated unpaid leave encashment and gratuity as liability and claimed deduction of same and full particulars of income given in return were not found to be incorrect, penalty was to be deleted
Distributors buying and selling lottery tickets on principle-to-principle basis aren't liable to ST
Service Tax : Sale and purchase (including 'on sale or return') of lottery tickets, which are actionable claims does not amount to service, if distributor was not acting as agent of Government and therefore, said activity was not liable to service tax
SEBI’s AO has to follow earlier order of other AOs unless facts/circumstances of impugned case are d
SEBI : Unless facts and circumstances set out in order passed by adjudicating officer are materially different from facts and circumstances of case in hand, it would be just and proper for adjudicating officer to follow earlier order so that there is uniformity in quasi-judicial orders passed by adjudicating officers of SEBI
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