IT/ILT : Companies engaged in software product development are functionally different and dis-similar to companies engaged in providing software development services
Monday, 5 January 2015
Assessee can choose most beneficial exemption if two unconditional exemptions are available to him
Excise & Customs : Where two exemption notifications are in force : one granting absolute unconditional exemption and other granting unconditional partial exemption, assessee may choose exemption most beneficial to it
ITAT dismissed appeal of assessee as neither any adjournment was sought by him nor anybody appeared
IT: Where none was present on behalf of assessee, neither any adjournment was sought, appeals filed by assessee was to be dismissed
No addition in block assessment on basis of material collected during post search period
IT : Addition cannot be made to value of property on basis of material collected during post search period and not during search itself
No rectification for re-computation of turnover as it didn’t confine to removing arithmetical errors
IT : Where assessee sought recomputation of turnover under section 154, but determination of same would not be confined to arithmetical or adding figures rather explanation and answers would be required, therefore said section could not be invoked
Allahabad HC upheld order for release of goods on payment of cash deposit of 20% of value of goods
CST & VAT: Uttar Pradesh VAT - Where Assistant Commissioner demanded cash security both under VAT Act and Entry tax Act for release of seized goods, cash security of 20 per cent of value of goods would be justified
No deduction of legal fee incurred by assessee to defend his criminal case on charges of custom duty
IT: Expenditure on legal fees to defend in custom duty evasion related criminal case, having no connection with carrying on of business of assessee should meet disallowance under section 37(1)
No MAT on income shown in current year when it had suffered tax in earlier assessment year
IT : Where once profit of assessee company had suffered tax, its inclusion in book profit was no basis to bring it under purview of tax once again under section 115J
TP addition to be deleted if AO had computed ALP without considering comparable data available at as
IT/ILT: Where Assessing Officer computed arm's length price using higher gross margin without considering updated data available at time of assessment proceedings, addition made was not justified
SC: Court can't admit complaint on dishonour of cheque before expiry of 15 days of service of notice
Negotiable Instrument Act : No offence can be said to have been committed unless and until period of 15 days, as prescribed under clause (c) of proviso to section 138, has in fact, elapsed and, therefore, a Court is barred in law from taking cognizance of such complaint
No denial of condonation plea due to non-filing of documentary evidence when department didn't objec
Service Tax : Merely because no documentary evidence is placed on record in support of reasons leading to delay, reason assigned cannot be brushed aside in totality in absence of their being any counter or objection raised by department; hence, if reasons appear to be bona fide, delay must be condoned
Father gets Sec. 54B relief for acquiring new land in son’s name even if original land was held join
IT : Where son of assessee was also joint owner of land which was sold and new land was purchased in name of son because of assessee's old age and other technical reason, assessee was entitled to deduction under section 54B
Oilmeal Exports Decline 45% In April-November
Faced with a steep 45% decline in exports between April-November, oilmeal exporters have urged the government to incentivise its shipment to abroad.
India’s oilmeal exports have been witnessing steady decline over the last three years. After a record 5.60 million tonnes of oilmeal exports in 2011-12, its shipment fell to 4.85 million tonnes in the following year and 4.33 million tonnes in 2013-14.
But, the year 2014-15 has been the slowest in many years with overall exports at 1.42 million tonnes between April – November period as against 2.6 million tonnes in the corresponding period last year.
Used as a bird feed and an animal feed, demand of oilmeals indicates global economic direction. With weak global economies, spends on bird feed and animal feed hit resulting into a slowdown in India’s oilmeal exports. Also, India’s perennial importers have diverted their orders to South American countries including Brazil and Argentina.
“Situation can only change with higher import duty imposed on edible oils which in turn can support the export of soybean meal. The government should also consider to give higher Vishesh Krishi Gram Upaj Yojana (VKYUG) on export of oil meals to provide some support to check the falling export,” said Pravin Lunkad, president of the Solvent Extractors’ Association (SEA).
While the government raised import duty by 5% all across, the industry termed the raise insufficient to make any significant change.
“It is practically impossible to recover the 45% decline of the first eight months in just remaining four months of the year. Even if we assume that a positive crushing parity to stimulate domestic oilmeal production and intermittent buying from China and Iran, Indian exporters may be able to recover not more than 15% of the fall. Still, oilmeal exports witness a decline of at least 30% this year,” said Anil Agrawal, managing Director of Sanwaria Agro Oils Ltd.
Sanction hit Iran has started purchasing oilmeals from Brazil and Argentina which works out to cheaper of upto $100 a tonne than import from India. Also, European countries have opted to purchase from these natural global suppliers.
While India’s oilmeal exports to Iran fell by a steep 70% at 242,291 tonnes between Apr – Nov 2014, that of European Union nosedived by a staggering 83% to a mere 65,304 tonnes in the first eight months of the current fiscal compared with 379,056 tonnes in the comparable period last year.
Exports to Taiwan and South Korea also fell by 29% and 19% to 54,584 tonnes and 568,275 tonnes respectively in the period under consideration.
“Owing to negative crushing parity, crushing mills have piled up seeds as they incur losses in oil which they try cover up through elevation in oilmeal prices. This makes Indian oilmeal costlier than other origins like Brazil and Argentina,” said Agrawal.Also, due to high price of soybean, India is totally out priced in the international market by $ 50-60 against other origins.
Source:- business-standard.com
Usda Sees Good Prospects For Almond Exports To India
The USDA has placed almonds on the top of the list in its recommendations for exporters in USA for entering the Indian market.
While saying that India remains a complex market to make inroads for food companies, USDA says that almond exports to India have been promising with an average growth of around 20% and a share of around 80% of India’s total almond imports in the last five years.
India is a small but growing market for exporters in USA thanks to globalisation of food and higher incomes in India. According to official estimates, India’s imports of consumer-oriented foods, led by tree nuts and fresh and dried fruits, have doubled to around $3.2 billion in the last five years, and USA is a top exporter of almonds to India.
According to India’s Ministry of Commerce, almonds imports from USA stood at around $380 million in FY2013-14. It was about 78% of total almond imports by India in the year and up around 140% from around $158 million worth almonds that India imported in FY2009-10.
Source – Ministry of Commerce, India
Higher income, an expanding retail industry, preference for healthy food, and changing tastes in India are reasons behind the growing demand for almonds in India.
Moreover, the boost to the food processing industry in India is expected to increase demand for food products such as almonds from USA in the coming years. Other export items with high potential include pistachios, fruits and fruit juices, sugar confectionery, sauces and beverages, says USDA.
However, there are challenges for USA exporters. “High tariffs (of around 30-40%) on the majority of food items along with effective bans on certain products continue to hinder the growth of food imports from the United States,” says USDA. It adds that it is preferable for US companies to partner with Indian importers to help address policy and regulatory obstacles. Exporters must also be prepared to meet the requirements of Indian importers such as mixed shipments and changes in product specifications to meet food laws in India, it adds.
Source:- thedollarbusiness.com
AO was directed to verify confirmation letters of creditors produced before ITAT for sec. 68 additio
IT : Where assessee could not produce confirmation letters from creditors in time before lower authorities but same was produced before Tribunal, matter was to be remanded back to verify genuineness of said letters
Penalty upheld as material issued against Form 18 was used to produce goods for sale to branches out
CST & VAT: Kerala VAT - Where assessee purchased carbon black and rubber chemicals against form 18 and utilized same for production of tyres, tubes and flaps transferred to other branch offices outside Kerala for sale, imposition of penalty under section 45A(g) was justified
Sum paid on testing of ultrasonic meter wasn't FTS as it didn't satisfy make available clause of Ind
IT/ILT : Payment made by assessee, engaged in business of manufacturing ultrasonic meters, to a US company towards calibration and testing of equipment, could not be treated as, fee for technical services' due to non-Compliance with make available cause
AO can’t make sec. 14A disallowance before discharging onus that exp. has been incurred on exempt in
IT : Where assessee had not claimed any expenditure in relation to exempt income, onus is on Assessing Officer to prove that out of expenditure incurred under various heads, some were related to earning of exempt income and not only this he has also to give basis of such calculation
Rupee Still Down By 8 Paise Vs Dollar
The rupee staged a mild recovery but was still trading lower by eight paise to 63.37 against the American currency in late morning trade on fresh dollar demand from banks and importers on the back of higher greenback in the overseas market.
The rupee resumed lower at 63.43 per dollar as against the last weekend's level of 63.29 at the Interbank Foreign Exchange and dropped further to 63.50 on initial dollar demand from banks and importers.
However, it recovered from its initial losses and was quoted at 63.37 per dollar at 1000 hours on selling of dollars by banks on hopes of more foreign capital inflows into equity market. It moved in a range of 63.36 to 63.50 per dollar during the morning trade.
In New York market, the US dollar ended higher against other currencies on last Friday on expectations that the Federal Reserve will raise interest rates while the European Central Bank and Bank of Japan continue to loosen monetary policy in the year ahead.
Meanwhile, the Indian benchmark Sensex was quoted higher by 103.83 points, or 0.37 per cent, to 27,991.73 at 1000 hours after crossing 28,000-mark in the early trade.
Source:dnaindia.com
'Gambier' isn't Kattha/Catechu, it is an unclassified item taxable at higher rate under UP VAT Act
CST & VAT : U.P. VAT - Where assessee was engaged in purchase and sale of Gambier and it claimed that said product was Kattha/Catechu falling under Entry No. 68 of Part A of Schedule II to U.P. VAT Act, product Gambier was an unclassified item
Income returned only in response to sec. 153A notice won't call for levy of concealment penalty
IT : Penalty under section 271(1)(c) could not be levied in respect of returned income which had been filed in response to notice under section 153A
No invocation of extended period when demand arose due to retro-amendments
Service Tax : No extended period, when demand arises due to retrospective amendments
Govt. notifies certain institutions and their eligible schemes for the purpose of deduction under Se
IT : Section 35AC, Read with Explanation (B) Thereto, of the Income-Tax Act, 1961 - Eligible Projects or Schemes, Expenditure on - Notified Eligible Projects or Schemes – SWA-Roopwardhinee, Maharashtra, Etc.
ITAT couldn't remand case to AO when it had enough material before it to decide issue of disallowanc
IT : Where there was enough material on record enabling Tribunal to decide issues raised in respect of allowance of service charges, matter was to be decided by Tribunal; it should not have remanded same to Assessing Officer
Dismissal of appeal by Tribunal without assigning any results would render its order as cryptic; to
Excise & Customs : Where Tribunal had not considered pleas raised by assessee and had brushed aside various grounds without any reasons, such Tribunal order, being cryptic, was liable to be set aside and remanded back for consideration afresh
Income declared in return couldn't be deemed as undisclosed if return was filed before the date of s
IT: Where income received by assessing was filed before search and same was on records of department before date of search, income could not be undisclosed in view of section 158BB
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