Interest earned on proceeds of public issue, deposited in bank, wasn't eligible for sec. 10B relief

IT : Assessee, registered as EOU, was entitled to claim exemption under section 10B in respect of interest earned on bank deposits kept for opening letters of credit while interest given by banks in respect of moneys received on behalf of assessee against public issue of shares and interest from temporary ICDs kept with other companies out of proceeds of public issue of shares were not

Processing of synthetic soft drink syrup by fountain machine tantamount to manufacture of soft-drink

CST & VAT : Uttar Pradesh VAT - Where assessee purchased synthetic soft drink concentrate syrup and by use of fountain machine converted it into soft drink, soft drink was outcome of a process to manufacture and was rightly taxed being manufactured soft drink

Even corporate advisory services, rendered at cost would assume nature of income in hands of NR paye

IT/ILT : Even corporate advisory services, rendered at cost would assume nature of income in hands of NR payee

Issue of validity of charges of suppression or evasion isn't question of law; can't be adjudicated i

Service Tax : Issue of : (a) invocability of extended period or (b) validity of charge of suppression or (c) validity of charge of intention to evade, is a 'question of fact' or at least, 'a mixed question of law and fact' and not a 'pure question of law'; hence, same cannot be adjudicated in writ

Supreme Court set aside cryptic and vague order of HC allowing suit for holding EGM without recordin

CL: Where High Court had taken a specific stand that in view of provisions of Companies Act suit was not maintainable, then checkered history between contesting parties could not have decided maintainability of suit

Commission paid to NR agent for procuring export orders outside India didn’t fall within the ambit o

IT/ILT : Assessee, a manufacturer and exporter, cannot be fastened with liability to deduct TDS on payment of commission to non-resident agents for procuring export orders outside India

Tribunal can't order full pre-deposit by disregarding High Court's judgment in favour of assessee

Cenvat Credit : When, at prima facie stage, applicant puts forth an arguable case along with a High Court judgment in its favour, Tribunal cannot order full pre-deposit by distinguishing and disregarding said judgment by holding it to be per incuriam

WDV of building on leasehold land couldn’t be claimed as current repairs if assessee didn’t construc

IT: Where assessee had not constructed any building or had modified existing building after taking premises on lease, assessee's claim of written down value of said building on leasehold land as current repair would not be allowed

HC orders regularization of temporary employee of I-T department as he had completed prescribed peri

Service Matters : Where services of daily wage employees of Income-tax Department who had completed 10 years of service was regularized in 2007, denial of regularisation of service of petitioner who had completed 8 years of service till then and 15 years of service till date would be violative of human right

TPO gets flak from ITAT for disallowing royalty paid to AE without proving that assessee was contrac

IT/ILT : Where assessee was a manufacturer and paid royalty for using technological know-how of foreign holding company and it was selling manufactured goods to both AEs, and third parties, assessee could not be held as contract manufacturer so as to disallow royalty payment

Revisional authority could suo-motu disallow exemption for which assessee wasn't eligible

CST & VAT : Maharashtra VAT - Where Assessing Officer did not levy sales tax on brass sheets manufactured by assessee and further assessee being aggrieved by certain other disallowances made by Assessing Officer preferred appeal and later Revisional Authority initiated revisional proceedings and came to conclusion that brass sheets would not be eligible to exemption from levy of sales tax, since appeal had been filed aggrieved by other disallowances and there was no decision in said appeal

Provision for leave salary is a contractual liability and not a statutory liability; not hit by sec.

IT : Depreciation was to be allowed on goodwill acquired on acquisition of other concern on going concern basis

Assessee was liable to pay duty along with interest on his failure to rebut shortage in stock of fin

Excise & Customs : If shortage in stock of final product is evidenced by statement of assessee's manager as well as by mahazar recorded in presence of independent witnesses, assessee must duty thereon with interest

Gift held as unexplained as assessee failed to prove its genuineness and that it was given out of lo

IT: Where assessee could not prove genuinenes of gift claimed to have been received from an NRI and also factum that transaction was out of love and affection, a sine qua non to establish a genuine gift, amount was added to assessee's income under section 68

Profit on sale of shares held as Cap Gain as purchases made out of own funds & not borrowed funds me

IT : Where assessee earned income from sale of shares, in view of fact that said shares were purchased out of assessee's own funds and kept as investment all along amount in question was to be taxed as capital gain

CIT(A) to dispose of stay application as its Jurisdiction to deal with application for stay order is

IT : Where no stay application in respect of demand was pending either before Assessing Officer or before Commissioner, Commissioner (Appeals) should dispose of stay application filed in appeal

Govt. extends initial validity of industrial license for Defence sector upto 7 years

FDI/FEMA/ILT : Streamlining Procedure for Grant of Industrial Licenses – Extension of Initial Validity of Industrial License for Defence Sector

No additions by TPO due to differential man hour rate if services of assessee couldn't be bifurcated

IT/ILT : Where in respect of software development services rendered by assessee to its AE, TPO made certain addition relying upon difference in man hours rate charged by assessee from its AE and non-AEs, since price charged by assessee for rendering final composite work of software development services was aggregate price, it could not be bifurcated on basis of man hour rate and, therefore, impugned addition was to be set aside

Reassessment proceedings aren't analogous to proceedings for compounding of offence; it can be chall

CST & VAT : Karnataka VAT - Proceeding for compounding concluded on basis of inspection, would become final and could not be subjected to any appeal but reassessment proceedings initiated thereafter are independent of proceedings for compounding of offence, can be challenged on merits

Detention order refraining gold smuggling by petitioner wasn't illegal if issued in continuation of

COFEPOSA : Where second detention order under section 3 of COFEPOSA Act was not by itself a separate detention order but was passed in continuation of earlier order, elucidating reasons why earlier detention order, should still be served and executed, there was no contravention of section 3

AO couldn’t deny refund by ignoring the return filed by assessee claiming refund of excess advance t

IT : Where assessee had effected payments of advance tax in respect of a receipt that was not taxable in his hands and department accepted said payment of tax without demur, revenue was directed to refund excess amount paid by assessee

Value of stamps sold by commission agent wasn’t includible in his turnover to ascertain liabililty f

IT: Where assessee, a licensed vendor for sale of stamps on commission was under a bona fide belief that he was not liable for audit of accounts under section 44AB as per circular No. 452 and ICAI guidelines, penalty under section 271B was not to be imposed

Payment under Cenvat Rule 6 isn't a duty; time-limit for refund & doctrine of unjust enrichment do n

Cenvat Credit : Payment under rule 6 of CENVAT Credit Rules, 2004 is not 'duty'; hence, refund thereof is not governed by section 11B (time-limit for refund and doctrine of unjust enrichment)

Co-operative society providing credit facilities only to its members was entitled to relief under se

IT : Assessee, a credit co-operative society, engaged in providing credit facilities to its members only, was entitled to claim deduction under section 80P(2)(a)(i).

Govt Asks Missions To Explore Avenues For Cotton Exports

The Textiles Ministry has asked high commissions and embassies in countries, including Indonesia and Thailand, to explore possibilities of increasing cotton exports, Parliament was informed today.

The move assumes significance as India's cotton exports have declined significantly and it has impacted prices in the domestic market.

Exports of raw cotton during April-February 2015 have declined by 41.32 per cent in quantity terms and 46.6 per cent in value terms as compared to same period 2013-14.

"For safeguarding the interests of cotton growers in general and disposal of cotton to be procured under the MSP (minimum support price) operations in particular, Textiles Ministry has written to Indian High Commissions/Embassies in cotton deficit countries like Bangaladesh, Vietnam, Indonesia, Turkey, Thailand, to explore new avenues for export of cotton for stabilising cotton prices in India," Commerce and Industry Minister Nirmala Sitharaman said in a written reply.

As exports account for a substantial share of India's production of cotton, the decline in exports has resulted in a surplus for the domestic market and has impacted the cotton growers, she said in the reply to the Rajya Sabha.
Cotton Corporation of India has undertaken large MSP operations in all cotton growing states, she said.

As per the second advance estimates of Ministry of Agriculture, India's cotton production during 2014-15 was 351.52 lakh bales (of 170 kg each) as compared to 359.02 lakh bales in 2013-14 and 356.02 lakh bales in 2012-13.

India is the world's second-biggest producer of cotton. China is the top cotton export market for India, followed by Bangladesh and Pakistan.

The prices are declining because of a plunge in exports to its biggest market, China, which had changed its policy on cotton imports.

Replying to a separate question on a India-EU free trade agreement, she said India has proposed to "re-energise" the the Broad-based Trade and Investment Agreement (BTIA).

Launched in June 2007, the negotiations for the proposed BTIA have missed several timelines due to differences over several crucial issues like data secure status and duty cuts on goods.

Source:business-standard.com

Iron Ore Exports At 4.38 Million Tn In Apr-Oct Fy15

Iron ore exports were at 4.38 million tonnes (MT) in April-October period of 2014-15 while there are 596 non-working mines in the country, Parliament was informed today.

In a written reply to the Rajya Sabha Minister of State for Steel and Mines Vishnu Deo Sai said that as per provisional data, the country exported 4.38 MT of iron ore April-October period of the last fiscal.

He said the country has "197 working and 597 non-working iron ore mines" while the estimated reserves of iron ore in the country stand at 31.32 billion tonnes.

The country exported 16.30 MT of iron ore in 2013-14, and 18.11 MT in 2012-13. In 2011-12, the outbound shipments stood at 47.14 MT, the minister said.

Sai said the key steel-making raw material was exported mainly to countries like China, Japan and Korea.

"To conserve natural resources and to meet the domestic requirement, duty on export of iron ore has been increased from 20 per cent to 30 per cent ad valorem basis on all grades of iron ore (except pellets) with effect from December 30, 2011," the minister said.

Export duty of 5 per cent has been imposed on iron ore pellets with effect from January 27, 2014. Once the world's third-largest suppliers of iron ore, India has become a net importer over the last few years after a series of mining bans in mineral-rich states like Odisha, Goa and Karnataka.

According to a Steel Ministry report earlier, Softening global metal prices and continuing mining ban in the country had pulled down India's iron ore exports by a whopping 61 per cent to USD 63.84 million in March. The country earned USD 165 million by exporting iron ore in the same month of last year.

Source:business-standard.com

India’S Foreign Trade Policy: Overlooking Downsides

India recently announced its foreign trade policy for the next five years (2015-2020). A five-year foreign trade policy structurally represents a medium-term economic plan aiming to achieve key goals.

The macroeconomic goal is to increase India’s share in world merchandise and services exports from 2% at present to 3.5%. Translated in numbers, the increase would imply doubling exports from just under $500 billion to close to $1 trillion over a five-year period with annual average increases of roughly 20%.

Around 65% of India’s current export earnings are from merchandise exports, while the rest is from services. It is not clear whether the total increase proposed by the policy assumes this current ratio to be maintained over time. If it does then it entails annual increases of around $65 billion and $35 billion respectively in merchandise and service exports from their baseline levels.

An annual increase of 20% in merchandise and service exports from India is a tall order given that during 2005-2013 these exports experienced average growth rates of 15% and 14%, respectively. Indian exports would have to expand beyond their skins for achieving the kind of growth rates the policy expects them to.

Trade is a two-way traffic. Indian exports are imports for other countries. Exports are not taken by importing countries as favours or acts of charity. They are imported either as necessities or because they come at cheaper prices and better quality than same products at home.

India is not a global producer of necessities. It does not have ample resources of oil, gas, minerals and nuclear material for feeding the rest of the world. Nor does it have as broad a manufacturing base producing as cheap and varied items as China.

Its exports can crack the world market only if they are efficient, say, for example, from cheap production, or from unique features, like design or other specific attributes like environment-friendly features.

The problem is that it is not only Indian producers that are aiming to secure efficiency-based comparative advantages. Most of the rest of the world is. And India does not appear to be doing too well in this regard.

Consider India’s export strongholds. As far as textiles are concerned, India no longer has the advantage in garments. Vietnam, Bangladesh, Cambodia and Nepal, just to mention the neighbouring countries, cut, stitch and sew fabric faster and cheaper than India. India’s only major hope in textiles now is as supplier of raw cotton.

But that would imply it getting confined to the upstream and lower end of the textile value chain. Almost similar implications are for leather products where the production advantages in leather uppers and footwear are increasingly shifting to other country producers with India left back looking only at raw hides.

Gems and jewellery? Yellow gold has lost its lustre all over the world. Except the Chinese and Indians, the rest of the world, particularly the West, is not fascinated by jewellery made of yellow gold. Diamonds, yes: India is still the largest diamond-processing centre in the world. But poor business conditions are driving out processors to other facilities like the Gemopolis export zone in Bangkok. Moreover, processors can’t perform their art unless they get the diamonds.

What the Indian gem processing industry doesn’t seem to realise is that world over, consumers are veering towards less pure, processed industrial diamonds for use as fashion and replaceable jewellery. This is where Indian diamond processors are yet to get a handle on global tastes and preferences.

Automobiles are another sector where great hopes are pinned on. Connection of automobile value chain locations—both at the lower and upper ends—through various regional agreements can cut off India from major final demand and intermediate markets. With major automobile lead firms from Japan, Korea, US and Germany getting neatly tucked into mega-regional agreements like the TPP (Trans-Pacific Partnership) and the Transatlantic Trade and Investment Partnership (TTIP), investments in component and design facilities in value chains will be confined within these agreements. It would hardly be surprising if Honda, Hyundai, Toyota and the rest of the auto majors increasingly begin relocating facilities in TPP members like Mexico, Malaysia, Peru and Vietnam for taking advantages of lower tariffs, common standards and uniform investment rules.

Finally, services. The game is already lost on business process outsourcing and IT-enabled services. Ireland, the Philippines and even Bangladesh, are speaking better English and working longer for providing outsourcing services.

While the non-English speaking world is desperately learning English to stay relevant, India is learning it lesser and does not mind giving up its BPO advantages. In services like nursing and basic education, India is unable to match the certification requirements of most countries.

There is little hope of these service providers travelling far and wide for boosting India’s service exports. Given its image as an unsafe destination and lack of budget travel facilities, ‘Incredible India’ might not be able to lure tourists despite visa-on-arrivals.

The foreign trade policy pitches for increasing exports by connecting it to the objectives and vision of  the Make-in-India initiative. But is Make-in-India aimed for Indians, or the rest of the world? Indian consumers might be denied access to imports and forced to buy substandard products. The rest of the world cannot be. The foreign trade policy appears to have overlooked some of the obvious downsides in taking India to the rest of the world.

Source:financialexpress.com

Irs Officer K Balaji Majumdar Appointed Private Secy To Minister Of State For Science & Technology

IRS officer K Balaji Majumdar was today appointed as Private Secretary to Minister of State for Science and Technology, and Earth Sciences Y S Chowdary.

Majumdar, a 1995-batch Indian Revenue Service (Customs and Central Excise) officer, has been appointed for five year period or on co-terminus basis with the Minister’s tenure, an order issued by the Department of Personnel and Training said.

Majumdar had served in the customs and Central Excise Departments under the Central Board of Excise and Customs (CBEC) in various capacities.

Majumdar got Presidential Award in 2014 for special distinguished record of service as Additional Director, DRI, Zonal Unit, Chennai.

Source:tkbsen.in

Irs Officer K Balaji Majumdar Appointed Private Secy To Minister Of State For Science & Technology

IRS officer K Balaji Majumdar was today appointed as Private Secretary to Minister of State for Science and Technology, and Earth Sciences Y S Chowdary.

Majumdar, a 1995-batch Indian Revenue Service (Customs and Central Excise) officer, has been appointed for five year period or on co-terminus basis with the Minister’s tenure, an order issued by the Department of Personnel and Training said.

Majumdar had served in the customs and Central Excise Departments under the Central Board of Excise and Customs (CBEC) in various capacities.

Majumdar got Presidential Award in 2014 for special distinguished record of service as Additional Director, DRI, Zonal Unit, Chennai.

Source:tkbsen.in

India Raises Sugar Import Tax To 40% From 25%

India has raised the import tax on sugar to 40 percent from 25 percent to help prop up falling local prices and protect local farmers who have not been paid by money-losing mills, the government said in a statement said on Wednesday.

India also slapped the tax on imports of raw sugar that refiners turn into whites, or refined sugar, to sell in world markets.

Five straight years of surplus output has led to a free fall in prices, hitting mills' financials. Sugar mills owe about 201 billion rupees (USD 3.18 billion) to farmers..

Source:moneycontrol.com

Steel Imports More Than Exports: Minister Expresses Concern

Sharing the concerns of a member in Rajya Sabha over the growing steel imports, Steel Minster Narendra Singh Tomar today said they are seized of the issue and discussing the matter with the Finance Ministry.

Replying to a question raised by Tapan Sen (CPI-M), Tomar said the import stood at nine million tonnes as against six million tonnes of export last year.

"The members concern is valid. We are seized of the matter and are holding discussion with the Finance Ministry," Tomar said.

Sen said the investment towards the ongoing capacity expansion would be of little use if steel import continues to rise.

About the ongoing expansion work, the Minister said work at the Rourkela and Bokaro steel plants have been completed and it would be wound up in Durgapur and Bhilai by the Seprember 2015 deadline, with the production capacity going up to 23 million tonnes.

He said Steel Authority of India has prepared a draft vision 2025 envisaging hot metal production target of 50 million tonnes by 2025 and the estimated investment for achieving the target would be 1.50 lakh crore.

While the investment proposal is yet to be firmed up, the source of funding would be through a mix of equity and debt, the Minister said.

Source:business-standard.com

AO rightly rejected certain transactions on failure of assessee to prove them as inter-State sales

CST & VAT : CST - Where assessee claimed that 26 transactions in question were inter-State sale and Assessing Officer rejected 6 out of 26 transactions, since in respect of 6 transactions assessee had been unable to discharge burden of proving that they were, in fact, inter-State sale, said transactions were not inter-State sale

ITAT rightly deleted penalty as assessee had paid full tax along with interest for income disclosed

IT : Where assessee had not paid full amount of tax at time of filing block return and paid balance amount of tax along with interest, assessee could not be penalised under section 158BFA(2)

Goods cleared on job-work basis can't be considered as exempted goods; Cenvat Rule 6 inapplicable th

Cenvat Credit : Goods cleared without payment of duty on job work basis under Notification 214/86-C.E., dated 25-3-1986 cannot be considered as 'exempted goods' and therefore, job-worker is entitled to credit of inputs used therein and rule 6 of CENVAT Credit Rules, 2004 cannot be invoked to demand reversal/payment

Indian Rupee Opens Marginally Lower At 63.22 Per Dollar

The Indian rupee opened marginally lower at 63.22 per dollar on Wednesday against 63.15 Tuesday.

The dollar dropped to an eight-week low after a weak US consumer confidence report, with investors cautious about a Federal Reserve meeting.

Himanshu Arora of Religare said, "The USD-INR pair is expected to trade lower today on expectations that Greece will reach a bailout agreement soon. Improved risk appetite along with surging equities may dampen demand of dollar. Further, World Bank's statement that India is less vulnerable now than it was in 2013, may also support the rupee in the short term.”

“Outcome of ongoing FOMC meeting is expected to offer more cues to Indian Rupee going forward. The range for today is seen between 62.85-63.35/dollar,” he added.

Source:moneycontrol.com

Revenue to grant refund with interest if its stay application against refund order was dismissed by

Service Tax : Where refund has been ordered by Commissioner (Appeals) and stay against said judgment is declined by Tribunal, there is not reason for revenue to stop refund; hence, department must grant refund with interest

Appeal filed by revenue having tax effect of less than 4 lakhs isn't maintainable before ITAT

IT: Appeal filed by revenue is not maintainable where tax effect of appeal is less than Rs. 4 lakhs

ITAT upheld estimated addition made by CIT(A) as assessee failed to show that it was excessive or un

IT : Where assessee, engaged in trading of chemicals and drug intermediaries, failed to prove genuineness of purchases and sales, revenue authorities were justified in rejecting books of account and estimating income at one per cent of aggregate value of purchases and sales

Goods clearance from DTA to SEZ would continue to be deemed as export and entitled to rebate of duty

EXCISE LAWS/CIRCULAR : Clarification on Rebate of Duty on Goods Cleared from DTA To SEZ

Guarantee commission charged from AE was at ALP as same amount of commission was paid to bank for ob

IT/ILT: Where assessee paid guarantee commission at rate of 0.5 per cent to bank for obtaining guarantee, arm's length guarantee commission charged by assessee in respect of all three transactions of guarantee to its AEs would be taken at 0.5 per cent

Commission paid by 'Premier Breweries' to its agents disallowed as they hadn't done any liaisoning w

IT : Where assessee, a manufacturer of alcoholic beverages, claimed deduction of commission paid to agents engaged in coordinating with State Corporation for continuous supply of liquor, since Managing Director of State Corporation had made a categorical statement that commission agent had not done any liaisioning work, assessee's claim for deduction was to be rejected

Tribunal can't pass order by placing reliance upon statement of counsels without any supporting mate

Excise & Customs : Where revenue sought inclusion of cost of mould on ground that 'assessee failed to establish that same is already included in value', Tribunal could not dismiss revenue's appeal by merely placing reliance on statement of assessee's counsel (without any supporting material) that 'cost of mould is already included in value

A Co. making bona-fide efforts to repay deposits is to be given time to clear all deposits : CLB

CL: Where company could not make payment as mandated under section 74(1), and it was making bona fide efforts in making repayments to depositors, company was to be given time to clear all deposits

Order of AO wasn't prejudicial to revenue once inquiry was held demonstrating how view taken by him

IT: Where for unaccounted expenditure revealed in search, assessee prepared cash flow statement and explained source and application of income to which Assessing Officer concurred, order of Assessing Officer could not be revised

Mere liquidation of shares in short span of time doesn't mean that assessee was doing business in sh

IT: Where assessee made investment in shares with intention to earn dividend income, merely because she liquidated its investment within a short span of time which had given better overall earning to her, it could not be concluded that assessee was doing business in shares and profit arising from sale of shares was taxable as business income

CIT couldn't withdraw registration of trust without pointing out any commercial activity carried out

IT: Where Commissioner withdrew registration under section 12AA(3) on ground that assessee was in receipt of income arising out of activity in nature of trade, commerce or business but he had not pointed out any specific instance of any activity, income or expenditure being non-genuine order of Commissioner did not conform to specific conditions laid down in section 12AA(3)

No exclusion of super profit making Co. from comparable list if material differences can be eliminat

IT/ILT : The mere fact that an entity makes high/extremely high profits/losses does not, ipso facto, lead to its exclusion from the list of comparables for the purposes of determination of ALP. In such circumstances, an enquiry under Rule 10B(3) ought to be carried out, to determine as to whether the material differences between the assessee and the said entity can be eliminated. Unless such differences cannot be eliminated, the entity should be included as a comparable

Pepper Exporters Unhappy With New Foreign Trade Policy

The restructuring of foreign trade policy by scrapping incentive for value-added black pepper for developed countries and retaining it for such consignments to emerging markets have left the exporters crying foul.

This has resulted in increased exports to emerging markets like Vietnam, which is the largest producer of black pepper, at the expense of consignments to major buyers like the US and European countries. Under the new Merchandise Export from India Scheme (MEIS), the earlier 5 per cent export incentive available for value-added pepper has been withdrawn and replaced with 3 per cent incentive for raw pepper and 2 per cent benefit to value-added pepper to emerging markets.

In a letter to DGFT, Spices Board chairman A Jayathilak pointed out that since the US and Europe are the largest and traditional importers of spices, denial or reduction of incentives to these countries, particularly in the processed value-added form, will have an adverse impact on the Indian spice industry . He requested for retaining the 5 per cent-incentive for export to all countries.

"Ever since the policy came in to force in April, the export of pepper to Vietnam has gone up. This is re-exported by the country after processing. In other words, Vietnam has benefited from policy change in India and could be selling the popular Malabar pepper to the US," said Kishor Shamji, a leading exporter.

The letter also mentioned that this type of incentive is against the `Make in India' programme of the government and higher level of incentives are necessary as India is facing strict competition from low-cost countries like Vietnam, Sri Lanka and Indonesia.

All India Spices Exporters' Forum chairman Gulshan John said around 80 items under spices category have been affected as the incentives have been either reduced or withdrawn or raised illogically. "We are not sure how this discrepancy happened. We will give a representation to the government after studying the situation completely ," he said. The spurt in shipments and heavy domestic demand seem to have pushed up the pep per prices. Black pepper prices have jumped 6 per cent to Rs 610 per kg in the local market during the month.

Earlier forecast says though the earlier forecast says pepper production in the country is likely to double to 70,000 tonne in the current season, several growers in Kerala are not very confident. "Untimely rains have damaged the crop and our expectations have been belied," said a grower, Rajendra Prasad, from Idukki in Kerala.

Black pepper exports for nine months to December 2014, had shown 6 per cent drop in quantity and 20 per cent increase in value over the same period in the previous year at 14,500 tonne valued at Rs 784.96 crore.

Source:economictimes.indiatimes.com

Sum paid to avoid execution of decree against assessee by way of attachment of property is allowable

IT: Payment by assessee to satisfy decree passed by High Court against it in order to protect its property and name is allowable as business expenditure

Spicing Up Crude Trade: Indian Crude Imports

In recent years India has emerged as one of the key importers of crude oil and in 2015 is expected to account for 11% of global seaborne crude imports.

Indian crude imports are projected to stand at just over 4.0m bpd in 2015, double the level of 10 years ago. So what has led to India becoming a key driver of oil tanker demand

The growth of Indian crude imports has been intimately linked with the rise of domestic refinery capacity, which is estimated to have stood at 4.6m bpd at the end of 2014. The continued growth of Indian refinery capacity, driven by growing oil demand and the construction of refinery hubs aimed at exporting large volumes of refined products (such as Jamnagar, which was expanded in 2009) buoyed Indian crude imports.

Further to this, several refineries have opened since 2009; most notably a number of refineries came online in 2010 which added 1.2m bpd of refinery capacity, aimed at supplying the domestic and foreign markets.

Although Indian crude imports have grown firmly, the diversity of suppliers has reduced recently. India now tends to import its crude from three major regions, the MEG, WAF and the Caribbean, with the majority being sourced from the Middle East, which supplied 58% of India’s crude imports in 2014.

However, this was not always the case, with short-haul imports from Asian exporters playing a greater role around the mid-2000s. Indian imports of WAF and Caribbean crude have increased from just 0.2m bpd in 2005 (8% of crude imports) to 1.4m bpd in 2014 (37% of crude imports), a growth rate of 28% p.a. on average.

This has been built on trade agreements and CoAs between producers and major refiners (such as Reliance, who operate the Jamnagar complex), which has edged out many smaller producers, resulting in ‘other’ exporters having a more limited role in Indian crude trade.

The rapid growth of long-haul crude shipments from the Atlantic Basin to India, coupled with more limited growth in volumes from the MEG has supported a sharp increase in the average haul of Indian crude imports. In 2005, the average haul stood at around 2,000 miles, compared to 4,000 miles in 2014.

As a result, tonne-mile imports grew by 17% p.a. between 2005 and 2014, compared to 7% p.a. growth of crude volumes during the same period. The growth of Indian crude tonne-mile imports has supported demand for VLCC and Suezmax tonnage.

Given expectations of further growth of refinery capacity and the filling of petroleum reserves it is likely that Indian crude imports will continue to grow in the near future. For example, a 0.2m bpd refinery is expected to be constructed in 2015, followed by two plants of a combined 0.45m bpd in 2016 in Haldia and Orissa.

Meanwhile, a petroleum reserve of roughly 70m barrels is scheduled for completion in 2015. Furthermore, some Indian producers are purchasing exploration blocks in the Caribbean, with the aim of supplying Indian refineries. These trends are likely to support crude tonne-mile imports and cement India’s place as a key driver of crude tanker demand.

Source:hellenicshippingnews.com

Commerce Ministry Liberalises Sales Of Preferential Quota Sugar

The Commerce Ministry on Tuesday liberalised the sales of preferential quota sugar to the European Union (CXL quota) and the United States (TRQ quota), effectively allowing all exporters and not just State Trading Enterprises (STEs) to avail of the benefits of the quota subject to a quantitative ceiling that will be reviewed notified by the Director General of Foreign Trade (DGFT) periodically.

The quotas essentially allow a quantum of exports to these markets at low tariffs. Additional imports of the sweetener beyond the quota are subject to additional tariffs. The Indian Sugar Exim Corporation would earlier export sugar under this system.

"The change in the policy of the preferential sugar quota will enable all sugar industries in the country to export sugar subject to a minimal requirement of registration from APEDA or DGFT," said the Ministry in a statement.

Traders will have to furnish details of exports to the Additional DGFT, Mumbai, as well as Agricultural & Processed Food Products Export Developnent Authority (APEDA). A certificate of origin, if required, will be issued by the former. The quota for the EU is presently 10,000 tonnes while that for the US is 8,000 tonnes.

Source:thehindubusinessline.com

Iab Report – India-Made Fuso Trucks Exported To Trinidad & Tobago

The island nations of Trinidad & Tobago became the 12th export market for India-made DICV trucks under the FUSO brand name, a press release from the company today stated.

DICV has also appointed Diamond Motors as its exclusive dealer in the region. Trinidad & Tobago becomes the first market in South America where DICV trucks are sold.

The trucks are manufactured at the company’s facility in Chennai and are part of the company’s Asia Business Model that sees the export of India-made trucks to countries like Kenya, Sri Lanka, Zambia, and Tanzania amongst others.

The FUSO truck range spans five models that comprise of both Heavy-Duty and Medium-Duty trucks. While the FJ, FO, and FZ categories form the 25-49 tonne heavy-duty segment, the FA and FI models constitute the 9-16 tonne range.

DICV also recently began exporting its bus chassis from India with the intention of adding the bus body in the export destination. The first country to receive the shipment of the initial batch was Egypt where Daimler has a partner in Manufacturing Commercial Vehicles (MCV) that builds bus and truck bodies.

With a separate bus manufacturing facility set to be inaugurated soon, Daimler India’s facility near Chennai will become the first in the world to produce trucks, buses, and engines for three brands – Daimler, Mercedes, and FUSO.

Source:indianautosblog.com

India Containerized Shredded Scrap Import Prices Advance; Copper Scrap Prices Decline

Indian containerized shredded scrap import prices advanced during last week, while Indian copper scrap prices on Scrap Register Price Index traded down.

According to The Steel Index, containerized shredded scrap prices for Indian imports advanced by $3 a ton to $298 a ton CFR Nhava Sheva in the week ended April 24.

Demand for scrap rose this week; however with issues around the Pre-Shipment Inspection Certificate (PSIC) yet to be resolved many market participants are wary of booking cargoes. This shortage of supply has been the predominant catalyst for the price rise.

Market sentiment is currently negative with most mills expecting to see a softening of scrap prices in May due to the upcoming monsoon season and continued pressure from cheap iron ore and sponge iron.

As per Scrap Register Price Index, the prices for major copper scrap commodities including copper armature, copper cable scrap, copper heavy scrap, copper sheet cutting, copper Super D.Rod, copper utensil scrap and copper wire bars traded down last week.

Source:metal.com

Wockhardt To Recall Some Products Manufactured In India From Us

Mumbai-based generic drug maker Wockhardt Ltd on Tuesday said that it will recall some remaining drugs manufactured at its two plants in India—Chikalthana and Waluj in Aurangabad, Maharashtra—from the US market ahead of a potential US Food and Drug Administration (FDA) import alert.

The US drug regulator had banned drug imports from Wockhardt’s two plants in 2013 citing flawed manufacturing processes.

The drug maker on Tuesday said that during the last USFDA CGMP (current good manufacturing practices) inspection of the facilities last year, some observations were made pertaining to batches of some products manufactured prior to the ban.

“As a measure of preparedness and as an abundant precaution, the company has now decided to recall, as a part of remedial measure, all the remaining batches in the US market that were manufactured prior to the USFDA (Food and Drug Administration) import alerts, even though there is no evidence of risk to patient safety from the products currently available in the US market,” Wockhardt said in a filing to the BSE on Tuesday.

“Whereas the company continues to supply some of the products in the US market manufactured in the same facilities, several batches of other products, manufactured prior to the import alerts, may still be in the US market,” Wockhardt said. Now, it has decided to recall those drugs.

The FDA has in recent months raised concerns about manufacturing practices at the India-based plants of several firms, including Lupin Ltd and Sun Pharmaceutical Industries Ltd.

Source:livemint.com

Assessee can be prosecuted anytime when exonerated in penalty proceedings on ground of limitation an

Excise & Customs : Where exoneration in adjudication/penalty proceedings was not on merits but on ground of limitation, assessee-accused cannot take shelter thereof to avoid prosecution proceedings; since there is no time-limit for launching prosecution, same can be launched despite recovery/penalty becoming time-barred

Rupee Trading Strong At 63.30 On Heavy Dollar Selling

The rupee appreciated further from its early gains by 18 paise to 63.30 against the American unit in the pre-noon trade on bouts of dollar selling from banks and exporters as well as firm equities.

The domestic unit opened higher at 63.37 against the last closing level of 63.48 at the Interbank Foreign Exchange market. It firmed up further to 63.29 in the late morning trade before being quoted at 63.30 at 11.45 am local time.

The rupee hovered in the range of 63.29 and 63.45 in the late morning session.

In New York, the dollar was up against its major rivals in early trade, after overnight broader pressure on renewed hopes that cash-strapped Greece was a step closer to securing fresh funding.

Meanwhile, the BSE Sensex was trading higher by 127.57 points or 0.47 per cent at 27,304.56.

Source:thehindubusinessline.com

No sec. 14A disallowance if suo motu disallowance was made by assessee below the limit prescribed un

IT: Where assessee had maintained proper accounts, duly audited and based his claim of having incurred a lower expenditure than that as per statutory prescription of rule 8D and no inquiry was made by revenue into expenditure stood debited in account books, assessee's claim of disallowance under section 14A was to be allowed

AO had rightly issued notice u/s 158BD instead of issuing it u/s 158BC as assessment was initiated o

IT : Where search was conducted in premises of one HS revealing undisclosed income of assessee, notices issued to HS under section 158BC and to assessee under section 158BD assessee being 'any other person', were proper

AO to examine whether listing fee wasn't recognized by Stock Exchange due to uncertainty over its co

IT: Where a stock exchange following mercantile system of accounting, failed to demonstrate existence of uncertainty over collection of listing fee to justify accounting on cash basis, matter was to be restored to file of Assessing Officer to examine same

TRO gets flak from ITAT for disposing for attachment proceedings pending disposal of appeal against

IT: Where Chief Commissioner had directed Jurisdictional Commissioner to dispose off assessee's grievance against attachment of his property as appeal under rule 86 of Schedule II to Act, TRO should not have disposed off attachment proceedings pending disposal of appeal by Jurisdictional Commissioner

Co. developing its own software products isn’t comparable with a co. rendering software development

IT/ILT : Where TPO made addition to assessee's ALP in respect of software development services rendered to its AE, in view of fact that some of comparables were improper on account of turnover and related party transactions whereas some other comparables were developing their own softwares and thus there existed functional difference, impugned addition deserved to be set aside

Tax paid on violation of certain condition was to be refunded if that condition was withdrawn with r

CST & VAT: Rajasthan VAT - Where Assessing Officer passed assessment order on 22-9-2006 and imposed tax upon assessee on plea that it had violated a condition of Sales Tax Incentive Scheme and against assessment order assessee filed appeal and deposited certain amount as precondition and subsequently State Government by notification dated 11-4-2007 deleted impugned condition with retrospective effect from 23-5-1987, since in terms of notification dated 11-4-2007 no tax was payable by assessee on

Secured creditor can’t auction property without following procedure prescribed under SARFAESI

SARFAESI : Insistence of law is that secured creditor in order to exercise its right to enforce security by bringing secured asset of borrower to sale must ensure that it has invoked permissible 'measures' strictly 'in accordance' with provisions of law and rules made thereunder

CIT(A) can himself make inquiry and refer the matter to DVO on failure of AO to do so

IT : Where Assessing Officer fails to make enquiry under section 55A while passing assessment order, Commissioner (Appeals) during appellate proceedings before him can make such an enquiry either himself or direct Assessing Officer to do so in terms of section 250(4)

No penalty on short payment of tax when it wasn’t attributable to negligence of assessee

CST & VAT : Maharashtra VAT - Where Assessing Authority levied penalty upon assessee under section 36(2)(c) read with Explanation 1 on plea that it had made lesser payment of tax along with returns, since lesser payment of tax was not attributable to a neglect by assessee, levy of penalty was not justified

Assessee has to pay interest on demand sustained in remand proceedings if he fails to pay initial de

IT: Where assessee did not satisfy initial demand raised in original assessment proceedings, it was liable to pay interest under section 220(2) on tax demand sustained in remand proceedings carried out as per Tribunal's directions

Guest charges received by club from its members weren’t taxable on principles of mutuality

IT : Since principal of mutuality would apply to transaction with member; guest charge received by assessee club from its members would not be liable to tax

CCI has powers to review investigation ordered by it; HC directs it to consider review application o

Competition Act: CCI has power to recall review order under section 26(1) of Competition Act but such power has to be exercised on well organized parameters of power of review/recall and without lengthy arguments and without investigation already ordered being stalled indefinitely

India Seeks First Cut In Lng Imports Under Qatar Deal: Srcs

India's LNG import costs under the deal are currently around USD 13 per million British thermal units (mmBtu), versus spot prices of USD 6-USD 7 per mmBtu, according to R.K. Garg, head of finance at Petronet LNG.
 
India is in talks with Qatar to import at least 10 percent less liquefied natural gas (LNG) under a long-term deal after a slide in spot prices has cut demand by local buyers, an Indian government source with knowledge of the negotiations said.

New Delhi would for the first time use a 10 percent reduction permissible under a 25-year contract with Qatar's RasGas to import up to 7.5 million tonnes a year of the super cooled fuel, said the source.

"We want to lift as little volume as possible under the contract," the source told Reuters, adding that India intended to use a tolerance limit of 10 percent in 2015.

"But we are negotiating for cuts deeper than 10 percent. All LNG terminals are running at lower capacity as customers are not lifting volumes," said the source, who declined to be identified due to the sensitivity of the issue. Telephone calls to Qatar's LNG producer RasGas seeking comment were not immediately answered.

India's biggest importer Petronet LNG  received its first cargo from RasGas under the current deal in 2004 with pricing linked to the oil. India's LNG import costs under the deal are currently around USD 13 per million British thermal units (mmBtu), versus spot prices of USD 6-USD 7 per mmBtu, according to R.K. Garg, head of finance at Petronet LNG.

Asian spot LNG prices rose as high as USD 20 per mmBtu last year, buoyed by soaring demand from emerging markets such as China and India as well as extra Japanese imports due to the Fukushima nuclear meltdown.

But spot prices have come off by two-thirds since February 2014 as Asia's economies slow and new production, especially in Australia, comes online.

Petronet's Garg said that Indian LNG demand had been lower than anticipated in the first quarter, although he added that orders from the fertilizer sector were expected to rise by June.

Pricing under the deal is linked to the previous 12-month Japan Crude Cocktail (JCC), including caps and floors based on average JCC prices of the past 60 months. While this formula reduces volatility, it does not reflect price falls as much as spot pricing.

Prior to 2009, the long-term deal included a rebate in order to stimulate India's gas demand, but with the discount now gone the spot market has become more attractive. Gas accounts for almost 8 percent of India's energy demand and the government wants to lift its use versus coal to cut pollution.

Source:moneycontrol.com

Ntpc Not To Import Coal In Q1, Cites Sufficient Cil Supply

NTPC, India's largest power producer, has decided against importing coal in the current quarter in view of adequate supplies from the state run miner Coal India.

This will lower generation costs and, therefore, tariffs for consumers because imported coal, which has higher energy content, is costlier than the domestic coal that is used in bulk in power plants. "We will not import any coal during the current quarter as all our coal stockyards are full," an NTPC official said.

The official, who did not wish to be identified, added that import requirements are reviewed every quarter and orders are placed to international suppliers depending on the supply potential from Coal India.

"NTPC intends to bring down its imports to zero in the next five years and if Coal India can supply bulk of our requirements we will definitely revise our import figures. Additional ly, NTPC's own coal mines are set to start production soon," he said.

A senior CIL official gave credit to NTPC for receiving as much coal as possible through its infrastructure, adding that railways played a key role in coal movement.

According to the official, Coal India has earmarked 78% of its planned production of 550 million tonnes, or 430 million tonnes, to be supplied to the power utility sector.

In 2014-15, Coal India's supplies to power utilities increased 8.6% compared to that in the previous year, he said, adding that dispatch of coal and coal products from the miner also increased to 384.18 million tonnes, up 30.35 million tonnes from that in the preceding year.

"The coal miner efforts are focused on reducing the imports to the extent possible by increasing coal supplies to the power sector," he said.

CIL helped NTPC boost its coal stock to 9.06 million tonnes as of March 2015, from just 1.6 million tonnes at the end of September last year. The healthy coal stock was due to enhanced coal supply from Coal India's subsidiaries to NTPC, especially in the second half of 2014-15.

"While acknowledging increased coal stock at its stations, NTPC was hopeful that CIL would maintain similar supply trend during 2015-16," the Coal India official said.

Source:economictimes.indiatimes.com

India: Low Global Prices To Encourage Iron Ore Import

India is likely to remain a net importer of iron ore in 2015-16 as falling international prices might encourage steel majors to continue importing the key raw material.

The quantity imported might not be as high as in the last financial year. However, with an expected increase in domestic production of iron ore. In 2014-15, India imported 15 million tonnes of iron ore, an all-time high. Exports were a meagre 4.5 million tonnes. This year, the country’s imports will again far exceed exports.

During this year, imports are likely to be around 10 million tonnes despite the reopening of mines in Odisha and the huge pile-ups in several places. However, the downward trend of international prices will keep importers interested in the global seaborne trade. CFR China would be below $50 per tonne.

Also, inconsistency in the supply of iron ore and availability of high-grade ore at cheap prices will be encouraging for the steel mills to keep their import intact.

Indian steel mills, which do not have captive mines, require around 95 million tonnes of iron ore per annum. JSW Steel, which was the largest importer last year at 10 million tonnes, will continue to be the major importer in FY16. Other importers include Tata Steel and Welspun.

“This year, we are going to increase our capacity utilisation above 90 per cent. Though the availability of domestic iron ore will improve during the year, we will continue to import to meet the requirement at our plants. However, we may not import as much as last year and might end up at around 6 million tonnes from South Africa,” Vinod Nowal, deputy managing director, JSW Steel, said.

Tata Steel, which imported around two million tonnes last year, is expected to import this year, too, to feed its Kalinganagar steel plant, which will be operational, analysts tracking the sector said.

Last year, imports took place at $70-90 per tonne and this year, prices are hovering around $50 per tonne, which is a good enough reason for the mills to import iron ore containing very high grades, Nowal added.

He, however, said price correction carried out by NMDC last week was not enough. Instead of the reduction of Rs 500 per tonne in prices of fines, they should have reduced by at least Rs 1,000 per tonne, he said.

“The recent correction of Rs 500 per tonne in domestic prices of iron ore fines by NMDC is welcome. However, more downward correction in ore prices are required to ensure imports are totally avoided. We need to continuously evaluate this domestic pricing aspect of iron ore fines vis-a-vis import offers in view of continued pressure on global steel pricing as well,” H Shivaramkrishnan, chief commercial officer, Essar Steel, said.

The production of domestic iron ore is pegged at 137-140 million tonnes for 2014-15. For the current financial year, a growth of 15 per cent is expected. The growth will come from NMDC and mines in Karnataka and Odisha.

Recently, the Rungta mines received environmental clearance for 16.5 million tonnes in Odisha. NMDC has announced it would increase production by 20 per cent to 35 million tonnes, as against 31 million tonnes in FY15.

In Karnataka, production is set to increase by over 20 per cent to 22 million tonnes in 2015-16. Goa is also likely to commence production towards the second half of this year.

“With the current prices in international market, there will be no scope for Goan miners to export. Moreover, the prevailing 30 per cent export duty on iron ore and differential freight tariff charged by the railway will not encourage exports,” an analyst said.

Source:hellenicshippingnews.com

Msmes Protest Against Import Duty Hike On Natural Rubber

Micro, small and medium rubber enterprises have protested against any further import duty hike on natural rubber. The All India Rubber Industries Association (AIRIA) in a petition to the government has asked for taking into consideration the plight of over 5,500 rubber MSMEs in the country before taking any step.

An expert group formed by the government last year has been finalising the national rubber policy. The group has had a series of meetings with both rubber producers and consumers and has taken a note of their respective issues and concerns.

The final report of the working group is to be released soon. In all fairness, the government needs to wait for the national rubber policy and take a concerted decision on a major issue such as increasing the duty, Mohinder Gupta, President, AIRIA, said.

According to rubber MSMEs, India already levies one of the highest duties on import of rubber and one of the lowest duties on import of finished rubber goods. As a result, the competitiveness of the Indian rubber industry is affected and many rubber units have already closed down.

The difference between domestic rubber production and consumption has grown to almost 4 lakh tonnes. There is no other way but to import rubber to keep the factories running. Import duty on rubber, therefore, should be reduced and brought to the level of import of finished rubber goods to address the inverted duty in the rubber sector, the association said.

If the Kerala/Central Government wish to help and support the rubber growers, it should be done directly by way of a subsidy to the growers as has been done by the governments of other major rubber producing countries like Thailand, Malaysia, Indonesia, Sri Lanka. No other country has penalised their respective rubber consuming interests by effecting hike in duty or imposing any other restrictions, Gupta said.

Source:thehindubusinessline.com

Indian Strategic Oil Reserve Long Overdue

Given the low crude oil prices, it is welcome news that India is forging ahead on creating a dedicated strategic oil reserve. There has been movement on this front in the past month or so. The special purpose vehicle responsible for the construction and maintenance of India's oil reserve, the Indian Strategic Petroleum Reserves Ltd (ISPRL), has finished constructing one storage facility at Visakhapatnam, where it can hold about nine million barrels.

Two more facilities in Mangaluru and Padur ( both on the West Coast) with another 30 million barrels of capacity are expected to be ready by October. The Budget allocated Rs 4,900 crore for crude oil purchases for this strategic reserve. This would buy about 13 million barrels at current prices.

Indian Oil Corporation has purchased two million barrels of crude oil from China's Unipec to be shipped into Visakhapatnam in May. Three more purchases, totalling six million more barrels, are now being negotiated, to fully charge the Visakhapatnam facility.

The dedicated strategic reserve is long overdue, given India's massive import dependency. India consumes about 3.8 million barrels a day and has to import about 80 per cent of that. As a regional refining hub, India actually imports more crude oil than is domestically required, for refining and re-export. The country is now the world's fourth-largest oil consumer and comparative gross domestic product (GDP) growth rates imply demand will continue to rise quickly.

The International Energy Agency (IEA) predicts that by 2020, India will be the largest oil importer, increasing its vulnerability to threats of physical supply disruptions and to large price fluctuations. A strategic oil inventory is imperative for energy security given this scenario.

The IEA recommends that importers should hold 90 days of imports in a dedicated reserve. India is not an IEA member and the ISPRL facilities at Mangaluru, Visakhapatnam and Padur together offer just 11 days' capacity. But this is a beginning. The ISPRL targets the construction of another 90 million barrels of capacity, across four different centres. Taken together, all these constructions, with adequate transport linkages (by sea, road and pipeline), would cost close to Rs 20,000 crore.

The concept of dedicated strategic reserves was first mooted in 1973, after the first oil crisis. Western strategic reserves have been tapped during the first Gulf War (1991), after Hurricane Katrina (2005) and in 2011, during the so-called Arab Spring. But quite apart from disruption scenarios, there is a business case for holding such reserves.

ISPRL would have leverage in the international markets since it could release inventory and book profits when prices climb, and recharge reservoirs when prices fall again. Storage can also be rented out to refiners that wish to store inventories. Gulf and Saudi oil majors, such as Aramco, the Kuwait Petroleum Corporation and the Abu Dhabi National Oil Company, have all evinced interest in storage-refining in India since it reduces their transport costs into Southeast Asia. Obviously, India could retain right to first use in emergency while negotiating such deals.

In sum, the government's rapid action is wise and timely. It will be necessary, indeed inevitable, to build a strategic reserve at some stage. It is better that this is done at a time like the current situation, when crude oil prices are low and construction activity is also muted. It should make a positive long-term difference to India's energy security.

Source:business-standard.com

Dicv Truck Exports To Trinidad And Tobago Begin

Daimler India Commercial Vehicles (DICV) and Mitsubishi Fuso Truck and Bus Corporation, Japan (MFTBC), launch DICV-made trucks in Trinidad and Tobago.

This is DICV’s 12th export market since May 2013. Within Asia Business Model, DICV truck exports to Trinidad and Tobago is the first South American market.

Exclusive dealer, Diamond Motors an authorized local distributor in Trinidad and Tobago will cater to DICV truck exports here. Made in India DICV trucks are already being sold in Kenya, Sri Lanka, Zambia and Tanzania. More export markets in the region will be added.

DICV Oragadam plant manufactures Fuso heavy-duty truck range (25 – 49 tonnes:FJ, FO and FZ) and Medium-duty (9 – 16 tonnes: FA and FI). Erich Nesselhauf, Managing Director and CEO of Daimler India Commercial Vehicles says exports to Trinidad and Tobago reflects brand performance in regard to export business. Success of DICV truck exports across markets upholds proficiency in manufacturing trucks in India customised to meet varied industry requirements.

Through Daimler Trucks Asia, DICV and MFTBC have combined strengths to make the most of sales potential. DICV remains focused on Indian commercial vehicle market. BharatBenz caters to countries similar to the Indian market conditions. MFTBC takes brand business to Asian and African regions (Mitsubishi-Fuso trucks from Kawasaki plant and Fuso trucks from Oragadam).

Keen about growth potential in South America, DICV looks to establish its presence here while it continues with new market expansion, through trucks that meet customer expectations in growth markets. DICV and Fuso trucks are tested under strenuous driving conditions for maximum reliability.

Source:rushlane.com

HC upheld sec. 69B additions on basis of DVO's report showing under statement of value of property b

IT : Where difference in consideration as disclosed by assessee and value as estimated by DVO indicated that consideration recorded was understated and DVO's report was to be relied upon to corroborate statement of assessee, addition made under section 69B was justified

Admission of assessee regarding violation of orders restricting use of credit would lead to impositi

Cenvat Credit : Assessee having admitted his default of violation of debarment orders restricting use of credit, penalty must necessarily follow and there is no need for appellate authority to go into notification, clarifications in budget or other provisions

A co. failing parameter of employee cost to sales ratio couldn't be chosen as comparable for TP stud

IT/ILT : Where a company has failed in employee cost to sales ratio it could not be taken as comparable

Indian Rupee Opens At 63.70 Per Dollar; Slips 14 Paise

he Indian rupee declined in the early trade on Monday. It has opened lower by 14 paise at 63.70 per dollar against 63.56 Friday.

The dollar started the week on the defensive after more disappointing US  economic data reinforced expectations the US Federal Reserve will not hike interest rates any time soon.

Agam Gupta of Standard Chartered said, "The USD-INR pair saw dollar demand come in on any dips last week and we expect that price action to continue."

He further added, "We expect importers to buy dollar on any dips to 63.35-63.40/dollar. Upticks to 63.85-63.90/dollar should see exporters hedge long-term receivables."

Source:moneycontrol.com

 

ITAT denied depreciation on buses as they were leased out on financial lease

IT: Where machines that were not actually used but were ready to use, were eligible to depreciation

Workers include managers and supervisors to ascertain eligibility of manufacturer for sec. 80-IB rel

IT: Where assessee was engaged in manufacturing process and employed total 10 persons including a works manager and a supervisor, she was eligible for 80-IB deduction

Delay in filing e-TDS return due to technical default in software of department won't attract penalt

IT : Where assessee could not file e-TDS statements in Form Nos. 24Q and 26Q within prescribed time on account of technical defect in software of department accepting said statements, delay in filing statements being beyond control of assessee, impugned penalty order passed under section 272A(2)(k) deserved to be set aside

AO can’t accept genuineness of loan merely on basis of bank statements and letter of confirmation fr

IT : Assessing Officer could not accept genuineness of loan taken by assessee from various creditors merely on basis of their bank statements and letter of confirmations as he was required to examine creditworthiness of said creditors as well

AO couldn't question reasonableness of business exp. when its genuineness wasn't doubted

IT : Where assessee made payment of compensation to CCL, a foreign company, for premature termination of Toll Manufacturing Agreement (TMA) entered into between parties, said payment being directly having nexus with business activity of assessee, was to be allowed as deduction under section 37(1)

No TP adjustment by treating share application money as loan to AE merely due to delay in issuance o

IT/ILT : Share application money cannot be treated as loan amount merely because there was delay in issuance of shares by subsidiary in name of assessee and cause of delay was duly explained by assessee

Additions upheld for sums credited in bank as assessee failed to show that it was due to under-invoi

IT : Where in course of search certain amount was found deposited in bank account of assessee-HUF, in absence of any evidence on record showing co-relation between under invoking of goods sold and amount so credited, authorities below rightly added said amount to assessee's taxable income under section 69

Normal tax rate would be applicable when assessee had opted for compounded facility after closure of

CST & VAT: Kerala VAT - Where assessee in earlier years had opted for payment of tax at compounded rates and during year in question he had not opted for payment of tax at compounded rates and he had opted compounding facility after close of year, rate of tax applicable under compounding scheme would not be attracted in instant case and regular rate of tax would be applicable

CLB rejected interim relief sought under oppression plea as petitioner were protected by interim ord

CL : It would be unjust and inappropriate to pass ad-interim orders in petition under section 397/398 where petitioners were adequately protected by interim orders of BIFR and Supreme Court

Jewellery received from father/father-in-law on occasion of marriage couldn’t be held as unexplained

IT : Undisclosed income for block period would be reduced by aggregate of total income to extent such income does not exceed maximum exemption limit

No revision by CIT if AO had duly verified that sum deposited in bank account of director was income

IT : Where Assessing Officer had duly inquired about sum deposited in bank account of assessee and took a conscious decision that said sum represented income of company in which assessee was director, in absence of any cogent material which proved that decision taken by Assessing Officer was erroneous, revision order passed to tax same in assessee's hand was to be set aside

Income derived from sale of shares by assessee carrying on his profession of doctor was taxable as c

IT: As amendment made in section 40A(3) by Finance Act, 2008 was prospective in operation; Assessing Officer was not justified in levying taxes on basis of said amended provision in assessment year 2005-06

Exp. incurred by Discovery, a program producer, to advertise channels was allowable as it was one of

IT : Where one of functions of assessee was to procure advertisements to be aired on channels, advertisements expenses on same were allowable

No addition of unexplained investment in residential units on basis of report of District Valuation

IT: Where District Valuation Officer indicated higher investment in residential unit than investment shown by assessee, addition as undisclosed investment only on that basis was not justified

Alleged market manipulation by shareholders doesn't lead to suspension of trading of company

SEBI : As a market regulator, SEBI is bound to take action against those who have prima facie indulged in market manipulation and it is not open to SEBI to direct Stock Exchanges to suspend the trading in securities of companies if they satisfy certain parameters fixed by SEBI which have no bearing whatsoever with alleged market manipulation

ALP of cost of services reimbursed to AE couldn’t be held as ‘nil’ if assessee derived benefit from

IT/ILT : Where reimbursement of engineering and software licencing expenses made to parent company located abroad was for benefit derived by assessee company, TPO was not justified in determining ALP of said payments at nil

SEBI releases discussion paper on overseas investments by 'Venture Capital Funds' and 'Alternative I

SEBI : Consultative Paper on Guidelines on Overseas Investments and Other Issues – Clarifications For AIFs/VCFs

Assessee is entitled to interest on refund granted through appellate order

VAT/CST : Gujarat Sales Tax/VAT : Refund allowed on modification of assessment order in appeal, can be said to be granted as per 'modified assessment order' and therefore, assessee is entitled to interest on delayed grant of such refund

HC set aside transfer order under sec. 127 as it contained reasons not specified in show cause notic

IT : Where reasons specified in order transferring assessees cases to other jurisdiction were totally different from what was spelt out in show cause notices, impugned order was to be quashed and set aside

Burden of proof to take credit lies on assessee; failure to prove receipt of inputs would lead to de

Cenvat Credit : Burden of proof to take credit lies on assessee; hence, where department found that input supplier did not have manufacturing facilities and was passing on credit without supply of goods and even assessee failed to prove receipt and consumption of goods in his factory, credit could not be allowed to assessee

No denial of sec. 10A relief by AO in ninth year relief alleging that there was reconstruction of ol

IT : Where assessee's claim for deduction under section 10A was allowed in respect of three units in initial years, claim so raised could not be rejected in nineth year on ground that said units were mere restructuring/reconstruction units which came into existence on account of transfer of old business

Govt. allows 49% FDI in Pension Sector

FDI/FEMA/ILT : Consolidated FDI Policy Circular of 2014 – Policy on Foreign Investment in Pension Sector – Insertion of Paragraph 6.2.17.9

No reassessment on same ground for which reassessment was made in prior year which was quashed

IT : Reassessment was quashed which was initiated on ground that assessee bank, which was in liquidation due to cancellation of licence was not entitled to set off brought forward loss against income from other sources

A Co. having Financial Year different than that of assessee couldn’t be selected as comparables for

IT/ILT: Companies engaged in development of software products are not comparable with company providing software development services

Job worker of PSU can’t plead ignorance of law to avoid extended period of limitation

Excise & Customs : A job-worker of a public sector company can be expected to be aware of amendments/law through said public sector company; hence, such job-worker cannot plead ignorance of law to avoid 'extended period of limitation

Borrower can’t file FIR against authorities of financial institution with sole intent to avoid repay

SARFAESI: Where respondent filed criminal complaint against authorities of financial institution with sole intent to avoid payment of loan, FIR registered against those authorities was to be quashed

Appellate authorities to make enquiry on failure of AO to do so before deleting additions made by AO

IT : In case of unaccounted entries found in books of account of assessee, though it is obligation of Assessing Officer to conduct proper scrutiny of material, in event of Assessing Officer failing to discharge his functions properly, obligation to conduct proper inquiry shifts to Commissioner (Appeals) and Tribunal and they cannot simply delete addition made by Assessing Officer on ground of lack of inquiry

Internal accruals of trust which result in reduced disbursement of tax free govt. grants aren't taxa

IT: Where tax free government grant provided to assessee government undertaking was reduced by amount of income of assessee from internal sources, such income would be exempted; part of such internal income which was not adjusted by way of reduction would be taxable

HC dismissed writ against Sec. 40(a)(ia) disallowance as assessee had remedy of filing an appeal bef

IT: Where against disallowance made under section 40(a)(ia) remedy was available to assessee by way of appeal under section 260A, writ petition was not maintainable

Exp. incurred by educational trust to build infrastructure for imparting education would be exempt u

IT: Where capital expenditure incurred by assessee trust for building necessary infrastructure for imparting education in various field which was for attainment of charitable object of trust, exemption would be granted

No disallowance for short-deduction of TDS on basis of retro-amendment

IT : Where assessees made several transactions of purchase and sale of shares with high volume, frequency and regularity, it would partake of character of business activities, and profit earned therefrom was to be treated as business income

Income from business of nursery constitutes agricultural income; exempt from tax

IT : Where assessee had carried out operations such as tilling of land, weeding watering, etc. upon land owned by it and when plants were established in soil they were shifted in suitable containers for sale, sale proceeds would constitute income from agriculture

DRT couldn't coerce defendant to attend proceedings by issuing arrest warrant against it

RDDBFI : There is no power vested in Tribunal to compel or enforce attendance of defendant at stage of adjudication on claim under section 19, not least by issuing a warrant of arrest or for such duress process to be executed through agency of police

Now RBI recognizes transgender as third gender; directs banks to include column of third gender in f

BANKING : Rights of transgender persons – Changes in bank forms/applications etc.

RBI excludes non-whole time director from purview of wilful defaulter; denies such relief to promote

BANKING : Collection and dissemination of information on wilful defaulters

Banks to exclude non-whole time directors from list of wilful defaulters while disseminating info to

BANKING : Collection and dissemination of information on defaulters

FIIs claim of treaty benefit to be decided within one month of filing claim, CBDT's direction

IT/ILT : Section 90 of the Income-tax Act, 1961 – Double Taxation Agreement – Claim of treaty benefits by FIIs under provisions of Double Taxation Avoidance Agreements

ITAT erred in passing ex-parte as it didn’t consider adjournment on medical grounds of assessee’s co

IT: Where Tribunal did not consider pray for adjournment sought on medical ground of assessee's advocate, order passed by Tribunal in absence of assessee was unjustified

No TDS on commission paid to NR agents for services rendered outside India in absence of their PE in

IT/ILT : Sales commission paid by assessee to non-resident commission agents for services rendered by them outside India was not chargeable to tax in India as commission agents did not have a permanent establishment in India, hence not liable to TDS

Assessee couldn’t challenge sec. 69 additions just because his statement during survey wasn’t on oat

IT : Even though statement by assessee during survey regarding undisclosed investment was not given on oath, same could not be retracted at whim and fancy of assessee

CIT(A) should adopt market rates in valuers directory/stamp duty reckoner in absence of sale instanc

IT: Where no sale instances was available of same area, Commissioner (Appeals) was right in working out Fair Market Value of land by relying upon rate mentioned in Indian Valuers Directory and Reference Book and Stamp Duty Ready Reckoner and by adopting annual rate of appreciation method

Entity working for ex-servicemen and enjoying exemption under Sec. 10(26BBB) gets immunity from TDS

IT : Section 10(26BBB) of the Income-tax Act, 1961 – Corporation established for welfare and economic upliftment of ex-servicemen – Requirement of tax deduction at source in case of corporations whose income is exempt under section 10(26BBB) – Exemption thereof

Customer/supplier base acquired along with business was intangible asset; entitled to depreciation

IT: Where assessee acquired a business which included intangible assets such as customer base, technical know-how, manpower, etc., depreciation under section 32(1)(ii) was to be allowed on same as intangible assets

India Likely To Remain Net Importer Of Iron Ore In Fy16

India is likely to remain a net importer of iron ore in 2015-16 as the falling international prices might encourage steel majors to continue import of key steel-making raw material through the current year. However, the quantity of imports may not be as high as last fiscal owing to an expected increase in the domestic production of iron ore.

In 2014-15, India imported 15 million tonnes of iron ore, an all-time high and for the second consecutive year the country's imports will far exceed exports. Exports out of the country is pegged at a meagre 4.5 million tonnes.

During this year, imports are likely to be around 10 million tonnes. This is despite reopening of mines in Odisha and the huge pile ups in several mines. But, the fact that international prices are continuing their downward journey and are ruling at below $50 per tonne CFR China would keep the interest of importers in the global seaborne trade. Also, inconsistency in supply of iron ore and availability of high grade ore at cheap prices will be encouraging for the steel mills to keep their import intact.

Indian steel mills, which do not have captive mines, require around 95 million tonnes of iron ore per annum.

JSW Steel, which was the largest importer last year at 10 million tonnes, will continue to be the major importer in FY16. Other importers include Tata Steel and Welspun among others.

"This year, we are going to increase our capacity utilization above 90%. Though the availability of domestic iron ore will improve during the year, we will continue to import to meet the requirement at our plants. However, we may not import as much as last year and might end up at around 6 million tonnes from places like South Africa," Vinod Nowal, deputy managing director, JSW Steel said.

Tata Steel, which imported around 2 million tonnes last year, is expected to import this year too to feed its Kalinganagar steel plant, which will be operational, analysts tracking the sector said.

Last year, imports took place at $70-90 per tonne and this year, prices are hovering around $50 per tonne, which is a good enough reason for the mills to import iron ore containing very high grades, Nowal added.

He, however, said price correction carried out by NMDC last week was not enough. Instead of Rs 500 per tonne reduction in prices of fines, they should have reduced by at least Rs 1,000 per tonne, he said.

"The recent correction of Rs 500 per tonne in domestic prices of iron ore fines by NMDC is welcome. However, more downward correction in ore prices are required to ensure imports are totally avoided. We need to continuously evaluate this domestic pricing aspect of iron ore fines vis a vis import offers in view of continued pressure on global steel pricing as well," H Shivramkrishnan, Chief Commercial Officer, Essar Steel said.

The production of domestic iron ore is pegged at 137-140 million tonnes for 2014-15 and for the current financial year, a growth of 15% is expected. The growth will come from NMDC, mines in Karnataka and Odisha. Recently, Rungta has received EC nod for 16.5 million tonnes in Odisha. NMDC has announced that it would increase production by 20% to 35 million tonnes as against 31 million tonnes in FY15.

In Karnataka, production is set to increase by over 20% to 22 million tonnes in 2015-16. Goa is also likely to commence production towards the second half of this year.

"With the current prices in international market, there will be no scope for Goan miners to export. Moreover, the prevailing 30% export duty on iron ore and differential freight tariff charged by the Railways will not encourage exports to happen,"  an analyst said.

Source:- business-standard.com

Low Global Prices To Encourage Iron Ore Import

 India is likely to remain a net importer of iron ore in 2015-16 as falling international prices might encourage steel majors to continue importing the key raw material.

The quantity imported might not be as high as in the last financial year. However, with an expected increase in domestic production of iron ore.

In 2014-15, India imported 15 million tonnes of iron ore, an all-time high. Exports were a meagre 4.5 million tonnes.

This year, the country’s imports will again far exceed exports.

During this year, imports are likely to be around 10 million tonnes despite the reopening of mines in Odisha and the huge pile-ups in several places. However, the downward trend of international prices will keep importers interested in the global seaborne trade. CFR China would be below $50 per tonne.

Also, inconsistency in the supply of iron ore and availability of high-grade ore at cheap prices will be encouraging for the steel mills to keep their import intact.

Indian steel mills, which do not have captive mines, require around 95 million tonnes of iron ore per annum.

JSW Steel, which was the largest importer last year at 10 million tonnes, will continue to be the major importer in FY16. Other importers include Tata Steel and Welspun.

“This year, we are going to increase our capacity utilisation above 90 per cent. Though the availability of domestic iron ore will improve during the year, we will continue to import to meet the requirement at our plants. However, we may not import as much as last year and might end up at around 6 million tonnes from South Africa,” Vinod Nowal, deputy managing director, JSW Steel, said.

Tata Steel, which imported around two million tonnes last year, is expected to import this year, too, to feed its Kalinganagar steel plant, which will be operational, analysts tracking the sector said.

Last year, imports took place at $70-90 per tonne and this year, prices are hovering around $50 per tonne, which is a good enough reason for the mills to import iron ore containing very high grades, Nowal added.

He, however, said price correction carried out by NMDC last week was not enough. Instead of the reduction of Rs 500 per tonne in prices of fines, they should have reduced by at least Rs 1,000 per tonne, he said.

“The recent correction of Rs 500 per tonne in domestic prices of iron ore fines by NMDC is welcome. However, more downward correction in ore prices are required to ensure imports are totally avoided. We need to continuously evaluate this domestic pricing aspect of iron ore fines vis-a-vis import offers in view of continued pressure on global steel pricing as well,” H Shivaramkrishnan, chief commercial officer, Essar Steel, said.

The production of domestic iron ore is pegged at 137-140 million tonnes for 2014-15. For the current financial year, a growth of 15 per cent is expected. The growth will come from NMDC and mines in Karnataka and Odisha.

Recently, the Rungta mines received environmental clearance for 16.5 million tonnes in Odisha. NMDC has announced it would increase production by 20 per cent to 35 million tonnes, as against 31 million tonnes in FY15.

In Karnataka, production is set to increase by over 20 per cent to 22 million tonnes in 2015-16. Goa is also likely to commence production towards the second half of this year.

"With the current prices in international market, there will be no scope for Goan miners to export. Moreover, the prevailing 30 per cent export duty on iron ore and differential freight tariff charged by the railway will not encourage exports," an analyst said.

Source:- business-standard.com

China Import Curb Has Hit Milk Producers Badly

Milk producers are going through a slump and those in Maharashtra are among the worst affected, said RS Sodhi managing director of Gujarat Cooperative Milk Marketing Federation Limited (GCMMF) which sells the Amul brand.

Sodhi was in the city to deliver a lecture at National Academy of Direct Taxes (NADT). Speaking to TOI after the function, he said the dairy industry is going through a global slump with China being a major reason for the situation.

China, which was a major importer of dairy products, has curbed purchases from previous year. This has coincided with a glut in New Zealand as well as Europe. Exports by Amul, which stood at Rs510 crore in the 2013-14, came down to Rs280 crore 2014-15. This also led to crashing of rates. The international prices of milk powder have come down to $2,000 a metric tonne as against $4,500 last year, which has ultimately hampered the competitiveness of the Indian industry, said Sodhi.

"On the other hand, there has been a rise in the price of dry fodder, leading to an increase in the cost for milk producers. However, there is little scope for an increase in procurement rates. The situation is comparatively better in states like Gujarat or Karnataka where the dairy cooperatives are organized. In Maharashtra, the procurement rates are down to Rs17 a litre from Rs25-26 for cow's milk," he said.

However, the slump will benefit consumers. With no immediate chances of increase in the procurement rates, the price of milk will also not go up, said Sodhi.

India exports milk and its products to countries like Pakistan, Afghanistan, Middle-East and also China. China has been a biggest importer world over. The going was good when China was buying but it has now left the entire industry in a desperate situation. Though the dairy business is expected to revive in the coming year, it may be too late for many of the producers, he said.

Source:- timesofindia.indiatimes.com

Gem & Jewellery Export Slightly Down, Might Do Better This Year

Gem and jewellery (G&J) shipments, nearly 13 per cent of India’s overall merchandise export, fell a marginal 0.4 per cent in financial year 2014-15.

Data compiled by the Gems & Jewellery Export Promotion Council (GJEPC) showed overall G&J export was $39.9 billion in 2014-15, as compared to $40.15 bn the previous year. In rupee terms, shows data compiled by the G&J Export Promotion Council, export rose marginally to Rs 243,885.8 crore from Rs 242,837 crore a year before.

“The industry battled several economic issues — downturn in China, political and terrorist unrest in the Middle East, a declining European market and the suffering Russian rouble, which had a direct and adverse impact on export. However, foresight and agility helped survive these trying times, owing to significant action in the US and UAE to boost export,” said Vipul Shah, chairman of GJEPC.

It had organised several buyer-seller meets in the US and participated aggressively in Dubai trade fairs, both important jewellery export destinations. Also, continuous dialogue with key G&J entities in the US, with offers of value-additions, and trend forecast seminars for Indian manufacturers, had helped.

Gross export of cut and polished diamonds fell 5.5 per cent in dollar terms to $23.2 bn versus $24.5 bn a year before. In rupee terms, it was a a decline of 4.5 per cent to Rs 141,514 crore. This can be attributed to a decline in volume terms of the gross import of rough diamonds (‘roughs’ in industry parlance), at 14.73 mn carats, or 9.1 per cent, from the year before.

The lower costs of importing roughs through the notification of a special economic zone in this regard is expected to benefit the Indian industry substantially in the coming years. The industry is optimistic about maintaining the current level of performance and intends aligning with global diamond mining companies to promote diamond jewellery.

For this financial year, which began on April 1, Shah said the first quarter was set to remain flat. "Gradual growth is expected during the second quarter and onwards. The entire year is set to end with single-digit growth in G&J export,” he said.

The diamond jewellery segment, which contributes around half, is likely to remain flat but shipment of gold and silver ornaments is expected to see good growth.

Source:- business-standard.com

Rupee Loses 11 Paise Against Dollar In Early Trade

The rupee declined by 11 paise at fresh three-month low of 63.43 against the US dollar in early trade today at the Interbank Foreign Exchange on renewed demand for the American currency from banks and importers amid foreign capital outflows in the equity market.

Besides, a lower opening in the domestic equity market weighed on the local currency but the dollar's weakness against other currencies overseas capped the rupee's losses, forex dealers said.

The rupee had plummeted to over three-month low of 63.32 by losing 50 paise against the US dollar in yesterday's trade on renewed demand for the American currency from banks and importers amid foreign capital outflows in the equity market.

Source:- dnaindia.com

Mere visit of officers of foreign service provider in India doesn't impose ST liability on service p

Service-Tax : A foreign company having no business establishment or operations in India, cannot be asked to pay service tax on services provided by it to Indian recipient merely because of a visit of its officers in India in course of providing service

Regional director entitled to voice his apprehension before Court at time of sanctioning of scheme o

CL : If Regional Director nurtures any doubt qua any of clauses in a scheme of amalgamation, and finds that same is contrary to law or apprehends that on strength of such a clause contained in scheme, company, after obtaining sanction from Court, may use or misuse same for contravention of any law including provisions of Income-tax, he is entitled to voice his doubt/apprehension before Court, at time Court considers grant of sanction to scheme

AO’s order granting partial stay after examining materials needs no interference as AO had discretio

IT: Power of stay governed by clause (c) of section 220 is a discretionary one

No denial of sec. 54 relief to eligible assessee just because he had inadvertently made claim under

IT: Where assessee fulfilled all conditions prescribed for claiming deduction under section 54, claim could not be denied for mere fact that he raised claim inadvertently under wrong of section 54D in return of income

Summoning of petitioner for FEMA offence in a mechanical manner is bad in law : HC

FEMA: Legal bar imposed in proviso to section 61 of FERA is ought to have satisfied at first instance before issuance of process about compliance of proviso to section 61(2) about factum of opportunity given to accused and his satisfaction to this effect must be there before taking cognizance against petitioner in exercise of this legal duty, as there is a statutory bar imposed upon ACMM from taking cognizance

Co. involved in development of software products isn't comparable with co. rendering ITES services

IT/ILT : Where TPO made addition to assessee's ALP in respect of rendering ITES services to AE, in view of fact that some comparables selected by TPO were developing software products and, thus, there existed a functional difference, impugned addition was to be set aside and, matter was to be remanded back for disposal afresh

No denial of sec. 54F relief on pretext of two houses when assessee had gifted one of them orally un

IT : No denial of section 54F relief on pretext of two houses when assessee had gifted one of them orally under Muslim law

Jobbing or arbitrage transaction carried out by broker to hedge its business loss isn't a speculativ

IT: Where assessee-broker's business was trading in shares on behalf of its clients, loss sustained by assessee was a business loss which could be set off against income from other sources

Sec. 11 relief available to Indian Medical Association if it was endorsing health products to promot

IT : Where assessee, Indian Medical Association, engaged in promoting public health, endorsed products of various companies on claims of health and nutritional benefits, said activity could not be regarded as violative of provisions of section 2(15) and, thus, assessee's claim for exemption of income was to be allowed

Govt. notifies Registrar/Sub-Registrar as person carrying on designated business under Money Launder

MONEY-LAUNDERING/FEMA/ILT : Section 2(1)(sa)(vi) of the Prevention of Money-Laundering Act, 2002 - Person Carrying on Notified Activities - Notified Activity

AO can’t examine reasonableness of exp. while allowing deduction under sec. 37(1)

IT : Whether or not advertisement or brand building expenditure should have been incurred is prerogative and right of assessee and Assessing Officer cannot question and challenge same

No denial of sec. 12AA registration to educational institution just because it was eligible for sec.

IT: Where assessee was carrying out its object of imparting education by establishing an educational institutation, merely because it was also preparing students for compertitive entrance exams, it could not be said that it was not a charitable institution

IRDA issues updates of syllabus for Insurance agent's exam in line with Insurance Laws (Amendment) B

INSURANCE : IRDAI (Appointment of Insurance Agents) Guidelines, 2015 – Revised IC-33 And IC-34 Syllabus

Govt. notifies ‘Institute of Chemical Technology, Mumbai ’as scientific research association under S

IT : Section 35(1)(ii) of the Income-Tax Act, 1961 - Scientific Research Expenditure - Approved Scientific Research Associations/institutions – Institute of Chemical Technology, Mumbai

Retraction made by assessee after 2 years and just before finalization of assessment wasn't acceptab

IT : Where assessee made an admission regarding unaccounted investment and belatedly retracted from same on basis that admission was based on coercion and force without giving any reason, same was not acceptable and addition as undisclosed investment was to be upheld

HC affirms ITAT’s order denying condonation of delay in filing appeal considering assessee’s lazines

IT : Where assessees were lackadaisical in their approach and in a non-chalant manner they tried to seek condonation of delay over 1100 days in filing appeals, Tribunal was justified in declining condonation of delay

Rajasthan High Court upheld imposition of penalty due to incomplete declaration form

CST & VAT: Rajasthan VAT - Where Form No. ST-18 accompanied with goods under transport was found incomplete to extent that it did not disclose bill No. and date, levy of penalty under section 78(5) was justified

Kerala Knocks At Pm’S Door For Higher Import Duty On Rubber

The Kerala government has appealed to the Centre to hike the import duty on natural rubber besides seeking more funds for the price stabilisation fund. State Finance Minister KM Mani met Prime Minister Narendra Modi on Wednesday and discussed the issue.

“Rubber prices have come down to ?110 a kg this year from a high of ?270 last year. The main reason for this is increasing imports,” Mani told reporters here.

Against the deficit (between demand and supply) of 60,000 tonnes, total import was actually four lakh tonnes. This kind of dumping was done to affect the domestic price, he said.

Mani requested the Prime Minister to increase the import duty to 25 per cent ad valorem (duty as a percentage of the value). Currently, the duty is 20 per cent or ?30 a kg, whichever is lower. “Although, the PM did not give any commitment, I am confident that something will be done,” he said.

The southern State also asked for an additional ?500 crore allocation for the price stabilisation fund. Currently, the corpus is ?300 crore.

“A total corpus of ?800 crore will help to purchase 50,000 tonnes of rubber at reasonable price,” Mani said, adding that this will aid in improving the yield.

Kerala accounts for over 90 per cent of total rubber production in the country. Around 11.5 lakh farmers are engaged in rubber plantation on around 5.5 lakh hectares land in the State.

However, due to un-remunerative prices, production of natural rubber has dropped to around 6.55 lakh tonnes in 2014-15 from 7.74 lakh tonnes a year ago, according to the latest figures released by the Rubber Board.

Total rubber consumption by various industries, including tyre manufacturers, was 10.18 lakh tonnes during 2014-15, 3.7 per cent more than the previous year.

Recently, the Association of Planters of Kerala analysed the production, imports, exports and consumption patterns. It revealed that an additional stock of approximately 5.5 lakh tonnes is available in the country, which is enough to meet the demands of the consuming industry even if no production takes place.

Source:- thehindubusinessline.com

Global Headwinds Drag India’S Exports

The slowdown in global growth has hit India’s exports. In FY15, India registered $310.5 billion of goods shipment, down 1.2% from $314.4 billion the year before, and far lower than the government’s $340 billion target. Despite the depreciation in the rupee—from 60.5 to a dollar in FY14 to 61.1 in FY15—India’s merchandise trade could not get the edge.

Imports, too, declined to $447.5 billion in FY15 from $450 billion in FY14, thanks to the over 16% drop in the oil import bill as crude prices crashed globally. Gold imports were up 22% year-on-year as quantitative restrictions on the metal’s imports were lifted by November last year. Non-oil, non-gold imports picked up 7% in FY15, reflecting stronger domestic demand of goods.

In terms of the country’s export destinations, the slowdown was more visible in Asian nations such as China (minus 19%) and Singapore (minus 20%), while exports to the US and the UAE were stronger. Interestingly, India’s engineering goods exports increased 14%, which is a positive development given the fact that the Modi-government’s focus is on the manufacturing sector for job creation through its Make-in-India initiative.

Source:- financialexpress.com

Rising Gold Imports No Cause For Alarm

The Government, on Wednesday, said that rising amount of gold imports was no cause for an ‘alarm’ and action would be taken at an appropriate time.

Gold imports in March nearly doubled to $4.98 billion. In January and February, it rose to $1.55 billion and $1.98 billion, respectively. “The (gold) imports have surged in February and March. We will keep a watch. I think that we do not have to be alarmist and see whatever action is required at an appropriate time,” Commerce Secretary Rajeev Kher told reporters here.

He was speaking on the sidelines of the 49th convocation of the Indian Institute of Foreign Trade.

Relaxation in gold import norms by the Reserve Bank led to a spurt in imports of the precious metal in the recent months.

On November 28 last year, the RBI had scrapped the controversial 80:20 scheme.

Under the programme, which was put in place in August 2013 to put a tight leash on gold inflows, at least 20 per cent of the imported gold had to be exported before bringing in new lots.

Increasing gold import was one of the reasons for the widening trade deficit in March, which stood at $11.79 billion, a 4-month high.

India is the largest importer of gold, which mainly caters to the demand of the jewellery industry.

On declining merchandise exports, Mr. Kher said it was ‘indeed a cause of concern.’

“But we are aware of the reasons. We are aware that globally everything is slowing down, and, therefore, opportunities for Indian exports to that extend are limited. We need to find new areas, new markets, produce better quality products and more value added product. That is the way we can diversify,” he added.

Source:- thehindu.com

Exports May Not Even Touch $300 Billion

Exporters on Wednesday painted a grim situation saying that it will be difficult to even achieve even $300 billion exports in 2015-16 due to tough market conditions. In fact exports in 2014-15 had contracted by 1.23 per cent to $310.53 billion. This comes at a time when the BJP-led NDA government in its Foreign Trade Policy (FTP) 2015-2020 has targeted to raise India’s share in world exports from 2 per cent to 3.5 per cent by 2020.
 
Federation of Indian Export Organisations (FIEO) director general and CEO Ajay Sahai said that the trend right now, looks difficult for exports to touch $300 billion. “If global situation improves and currency changes its movement, then it is a different matter. But at the moment, it does not look (that the exports will touch $ 300 billion),” said Mr Sahai.
In one of the biggest decline in last six years, India’s exports fell by 21 per cent in March due to uncertainty in economic revival in key exporting markets. This was the fourth straight month of decline in Indian exports.
 
“Exporters need oxygen to survive,” said FIEO President S.C. Ralhan.  FIEO warned that if  exports contraction also impacted the volume for a long time, then it will result in job losses.  “If something does not happens from the side of government or exports does not pick up then there is going to be big job losses,” warned Mr Ralhan.

Source:- deccanchronicle.com

Rupee Up 3 Paise Against Dollar

The rupee on Wednesday strengthened by another 3 paise to 62.82 against the dollar on persistent selling of the American currency by banks and exporters amid fresh foreign capital inflows into the equity market.

The rupee resumed flat at 62.85 per dollar at the at the Interbank Foreign Exchange (Forex) market and hovered in a range of 62.7150 and 63.02 before concluding at 62.82 per dollar, showing a gain of 3 paise of 0.05 per cent from its last close.

The rupee has gained 9 paise, or 0.14 per cent, in the last two days.

In Asian market, the dollar was trading lower against the yen on Wednesday, getting a boost as Japan’s main stock market trimmed its earlier gains, action that limited selling of the Japanese currency.

In New York market on Tuesday, the dollar ended mixed against major currencies, with the euro pivoting to modest gains against the greenback after euro zone Finance Ministers moved away from fixing a deadline for Greece to come up with fiscal reforms.

Source:- thehindu.com

No writ against CBDT's order denying sec. 80-IA relief due to deceptive figures of allocable area of

IT : When applicant seeks benefit of deduction under section 80-IA, it must state correct facts at very first instance and not when authorities point a flaw in figures given of allocable area of industrial units, and thereafter keep changing it on grounds of typographical error and/or mistake

Misleading ad that 'Dettol' is far superior than 'Betadine' is unfair trade practice by respondent

Competition Law: Where respondent was attempting to mislead through advertisements that strength of its product Dettol and its efficacy was far superior to that of complainants product Betadine, advertisements issued by respondent being false and disparaging fell within ambit of unfair trade practice

Rajasthan High Court upheld imposition of penalty due to incomplete declaration from

CST & VAT: Rajasthan VAT - Where Form No. ST-18 accompanied with goods under transport was found incomplete to extent that it did not disclose bill No. and date, levy of penalty under section 78(5) was justified

Additions of unexplained investment made on buyer on basis of statement of seller during survey and

IT: Where assessee purchased a plot vide registered sale deed for certain consideration but during survey under section 133A, vendor of plot declared higher consideration which remained unrebutted, amount of difference was added to assessee's income as unexplained investment in plot under section 69

AO couldn't disallow direct exp. without rejecting books if assessee had shown profit higher than ea

IT : Where profit rate as declared was better than rate accepted in last year, amount of profit disclosed deserved to be accepted

No recovery proceedings against garnishee once it filed an affidavit that it didn't owe any sums to

IT : Proceedings under section 226 could not be quashed for non-service of notice where petitioner participated in proceedings subsequently

Utility bills and Bank Statements of clients acceptable as address proofs under Money Laundering nor

MONEY-LAUNDERING/ILT/INDIAN ACTS & RULES : Prevention of Money-Laundering (Maintenance of Records) Amendment Rules, 2015 – Amendment in Rule 2

Internal TNMM has to be applied to compute ALP if AE segment and non-AE segment are functionally com

IT/ILT : Where assessee had entered into international transaction with its AEs as well as third parties, AE segment and third party segment being functionally comparable, internal TNMM was to be applied to determine ALP of transaction with AEs

Advertisement to create public awareness and consciousness of product isn’t capital exp; allowable

IT : Expenditure incurred by assessee in field of advertisement with a view to create brand value of its product, was to be allowed as business expenditure

SEBI directs its employees to declare their assets and liabilities as per Lokpal and Lokayuktas Act,

SEBI/INDIAN ACTS & RULES : SEBI (Employees' Service) (Second Amendment) Regulations, 2015 – Amendment in Regulation 66

Fee paid to electricity board for using distribution network isn't FTS as it doesn't involve human i

IT : Rule 8D being not applicable for relevant year, Commissioner was not justified to hold order passed by Assessing Officer to be erroneous and prejudicial to interest of revenue simply because disallowance under section 14A was made without invoking this rule

Unabsorbed deprecation to be reduced from profit before allowing Sec. 10A deduction

IT : Unabsorbed depreciation shall form part of current year's depreciation and same is required to be deducted before allowing deduction under section 10A

No attempt to evade tax in absence of proper docs when goods in transit were meant for return and no

CST & VAT: Punjab VAT - Where Authorised Officer checked a vehicle carrying goods of assessee and having found that bills accompanying goods were not from regular bill book and an attempt to evade tax was made imposed penalty upon assessee under section 14B(7)(ii), since during assessment proceedings Assessing Authority had accepted bill book and stand of assessee that it was an agent of one 'E' and above goods had been returned to 'E' on cancellation of agency, there was no question of attempt

Losses already set-off prior to initial year of claiming sec. 80-IA relief couldn't be set-off again

IT: Loss prior to initial assessment year of claiming deduction under section 80-IA which has already been set-off cannot be brought forward and set-off while applying provisions of section 80-IA(5)

EOU outsourcing its manufacturing activity after carrying out engineering drawing was entitled to se

IT : Where assessee undertook detailed engineering drawings while outsourced production work and thereafter goods produced were re-inspected and assembled before they were exported, assessee's claim for exemption under section 10B was to be allowed

Receipts by NR on transportation of rig outside Indian territorial waters is includible in presumpti

IT/ILT: Amount received by assessee non-resident on account of reimbursement of expenses and mobilization revenue attributable to transportation of rig outside India territorial waters was to be added to its total income for arriving at profit and gains at rate of 10 per cent under section 44BB

Discretionary reduction of penalty by Tribunal in judicious manner doesn’t give rise to question of

VAT/CST : Guj. VAT : Where Tribunal had, looking to facts and circumstances, exercised its jurisdiction to reduce penalty from 50 per cent of tax to 10 per cent of tax, said exercise of jurisdiction does not give rise to any substantial question of law

CLB declared appellant as owner of shares as transferor didn't come forward to claim ownership of sh

CL : Where appellant transferee purchased shares from broker, but registrar and transferor raised objection that due to difference in signatures on transfer deeds, transfer would not be effected, in view of fact that inspite of several reminders, transferor had not come forward to claim ownership of impugned shares, appellant was to be declared as owner of shares

No interest for default in payment of advance tax by NR when all its receipts from payee were subjec

IT : Where assessees were non-resident companies, entire tax was to be deducted at source on payments made by payer to it and there was no question of payment of advance tax by assessees; therefore, revenue could not charge any interest under section 234B from assessees