IT : Where assessee had entered into an agreement with builder for purchase of undivided share of land and construction, date of allotment of undivided share in land was to be adopted as date of acquisition for computing capital gain instead of date of sale deed
Wednesday, 14 January 2015
Cost of production of abandoned TV serial was allowable as business exp. to its producer
IT : In case of film/television serial, cost of production is to be treated as stock in trade and expenditure on abandoned film or teleserial is to be allowed as business expenditure
Capital gain accrues on relinquishment of rights in land to developer to get constructed area
IT : Where assessees divested possession of land to developer and in lieu of that assessees would receive consideration in form of 50 per cent constructed area, capital gain accrued to assessees on account of transfer of land
ITAT couldn't examine order of AO if assessee appealed against the revisional order passed by CIT
IT/ILT : Non-compliance of provisions of section 144C itself proves that there is error in order passed by Assessing Officer and said order tantamounts to order being erroneous and prejudicial to interest of revenue
Delay caused due to perusal of remedy before wrong forum wasn't condonable when appellant didn't act
Excise & Customs : Where, in matter of order of Commissioner of Kanpur, assessee pursued remedy before Delhi High Court, which had no territorial jurisdiction in matter, instead of filing appeal before Allahabad High Court, and assessee had not acted bona fide, delay caused thereby could not be condoned
Sums paid on electrical fittings and wooden work of house are personal effects
IT : Sums paid on electrical fittings and wooden work of house are personal effects
Excess duty paid on exported goods using Cenvat credit would be allowed in form of re-credit and not
Excise & Customs : In case where an assessee had paid excess duty (i.e., duty at tariff rate instead of net effective rate, after exemption) on exported goods utilizing balance in Cenvat Credit account, said excess duty cannot be allowed as refund/rebate; however, it may be allowed as re-credit
Misleading ads by developer on quality of services to be provided in housing project was unfair trad
Competition Act: Where respondents had issued misleading advertisement about standard and quality of services proposed to be provided by them in their house project, it could be inferred that they were guilty of adopting unfair trade practice
No TDS on interest paid by Indian branch to its foreign head-office as it wasn't taxable on grounds
IT/ILT : Where interest payment made by Indian branch of assessee to its head office abroad was allowed as deduction in computing profits of assessee's branch in India, therefore, section 195 would not be applicable on said payment
Amendment to SEBI's Act barring filing of appeal before HC against order of SAT doesn't have retro-e
Reduction in "appellate package" is not retrospective unless amendment provides to the contrary
India Eyes Wheat Exports, But Cheap European Supplies Pose Challenge
A rally in global wheat prices and a looming tax on Russian exports have set the stage for a resumption in India's overseas sales, although cheaper European supplies could provide stiff competition to the South Asian nation.
Exports by the world's No.2 wheat producer after a six-month gap could cap benchmark wheat prices which soared 20 percent in the past quarter on worries over Russian supplies.
"India is in a unique position to make the best out of the export curbs put in place by Russia which was exporting wheat similar in quality to Indian wheat," said a trader with a leading global trading company in New Delhi.
Russia, a key wheat exporter, plans to introduce a duty of at least 35 euros ($41) per tonne on shipments from February to curb a rise in domestic prices.
India could sell around 2 million tonnes of wheat between February and July to Asian buyers as Russian supply dries up, traders and officials said. While this is small versus a global trade of around 160 million tonnes, it is important for Southeast Asian millers looking for prompt shipments.
"Importers such as Indonesia, Vietnam, Malaysia and Bangladesh will be taking Indian wheat because of the freight advantage over European cargoes," a Singapore-based trader said. Southeast Asian buyers pay a freight rate of $12-$15 a tonne to get wheat from India and up to $30 to get grain from Ukraine.
There has been talk among traders that India could start issuing tenders to sell wheat from reserves from February. Government stocks were at 25.1 million tonnes as of Jan. 1, more than three times the target.
"The government hasn't taken any decision on tenders yet but there are discussions going on between trading companies and the Food Corporation of India on export prospects and prices," an official at a state-run trading company said. India is set to procure wheat from farmers at about $230 per tonne this season, 3.7 percent higher than last year.
In the export market, Indian wheat was offered by private traders at $270 per tonne free on board, while French wheat was sold at $248.94-250.25 recently. Australian standard wheat is at $270 and Ukraine milling wheat is available for $265.
But Indian wheat is still "attractive for buyers in Asia because they buy in smaller parcels and shipping time is shorter", a second Singapore trader said. "There is a strong possibility of a couple of million tonnes coming from India."
Source:in.reuters.com
Penalty can be levied under Tamil Nadu Sales Tax Act only after issuing notice to assessee
CST & VAT: Tamil Nadu ST - As per Circular dated 20-4-2001 issued by Commissioner, before imposing penalty under section 24(3) of Tamil Nadu General Sales Tax Act, notice had to be issued to assessee
Member's share in AOP would be exempt from tax even when AOP was claiming relief under sec. 80-IB
IT : Income of member company of AOP/BOI is to be computed as per section 67A read with section 86; Assessing Officer was not justified in observing that where an AOP had claimed deduction under section 80IB(10), share of income of member-company in said AOP would not be exempted
India's Dec Palm Oil Imports Rise, Trend May Continue
Indian palm oil imports rose 5 per cent to 836,447 tonnes in December from a month earlier because of tight supplies of local soy oil plus the decision by big producers to allow duty-free exports of palm oil, which made overseas purchases cheaper.
The world's biggest edible oil importer is likely to make higher overseas purchases in January, too, after Malaysia decided to leave its palm oil exports duty-free until the end of February, industry officials said.
"Due to falling crude oil prices, biodiesel demand is quite weak for palm oil. That's why producers are trying to sell as much as they can to India," said BV Mehta, executive director of the Solvent Extractors' Association of India (SEA), a Mumbai-based trade body, Crude oil fell more than 1 per cent on Wednesday after touching its lowest in nearly six years on Tuesday.
"Farmers are holding back their soybean crop due to lower prices. It has been affecting soybean crushing and availability of soyoil in the country," said a Mumbai-based dealer. Soybean is the main summer-sown oilseed in India and its prices have fallen due to sluggish export demand for soymeal.
India's total vegetable oil imports in December fell 4.2 per cent from a month earlier to 1,139,586 tonnes as purchases of sunflower and soyoil dropped, data released by the SEA showed.
India mainly buys palm oil from Southeast Asia, with small quantities of soyoil from Latin America and sunflower from Ukraine. Edible oil stocks in India rose to a record 2 million tonnes on January 1 as lower prices prompted refiners to import more than the local requirement, Mehta said.
Source:economictimes.indiatimes.com
Perusal of appeal on same issue of prior years to be deemed as reasonable ground for delaying appeal
IT : Where assessee for earlier assessment years had diligently pursuing matter before higher authorities and had succeeded in getting a decision in its favour, same would constitute sufficient cause for delayed appeal for current assessment year
Capital gain arose on sale of shares if money was invested in shares for holding them for longer per
IT : Where a person invests money in an asset with intention to hold it, enjoys its usufruct for some time and then sells it at enhanced price, it would be a case of capital accretion, and not an adventure in nature of trade
HC allows withdrawal of revised return filed in pursuance of a wrong legal advice
IT : Where assessee proceeded on wrong legal advise and subsequently during assessment proceedings it stated that it would like to withdraw revised return and would rely upon original return, issue was to be decided in favour of assessee
Ppmai Urges Govt Not To Further Hike Import Duty On Stainless Steel
Process Plant & Machinery Association of India (PPMAI) has written to Director General of Safeguard Duties not to impose any further duty on import of Cold Rolled Flat Products of Stainless Steel of 400 series in larger interest of the capital goods industry and the prevailing economic situation in the country.
"Such an action of initiation of Safeguard duty proceeding by Director General of Safeguards over the Last year budget increase of 7.5 percent from 5 percent on imports of stainless steel coils and sheets plus advantage gained by the domestic stainless steel producer through devaluation of rupee by over 40 percent in last couple of years will affect the downstream industry in the country," Secretary, PPMAI, V. P. Ramachandran said in a press statement on Tuesday.
"There are already anti dumping duties applicable on a host of stainless steel imports from practically all countries on the behest of local single private sector producer. Currently most of the stainless steel imports are from Japan and Korea who basically supply these grades for their car units set up in India where the material standards call for the imports from these countries only. Moreover these countries as well as Malaysia enjoy special rate of import duty as a result of FTA with them. Due to FTA, the petitioner also gains access to these countries to export from India," said Ramachandran.
He said, "The imports from China do not seem so alarming as per the data available in the country. The imports from Europe are of high quality but very low in volumes and at a much higher price than the local producers because the industry needs such high quality product imports which are not available from the domestic stainless steel producer."
"Indian stainless steel industry has a limited range of products and their quality of products and commercial dealings are inconsistent and not world class. We do have Salem Steel Plant , though not there as petitioner, and they too have extremely limited range of products. Therefore imports shall happen and can not be stopped. Therefore the initiation of safeguard duty is actually based on incorrect data from petitioner which does not justify this initiation at all," added Ramachandran.
"We do have confidence in the new government that it will take care of all end user industries including SMEs and not support any action which leads to creating any undue advantage for the petitioner to suit their individual business interests.We therefore appeal to DG to reject this proposal of the petitioner for imposing safeguard duty," he added.
Source:smetimes.in
Govt To Soon Ease Exporters' Hassles
The government has planned various measures to ease things for exporters on transaction costs and processes.
Commerce Secretary Rajeev Kher chaired a meeting on Tuesday in this regard, attended by officials from the departments of industrial policy and promotion, revenue, telecom, roads, railways, shipping and foreign trade, among others.
The aim is an efficient trade facilitation mechanism, in line with global standards for seamless movement of goods within states, commerce department officials told Business Standard.
The government has already undertaken several measures on digitisation of various processes for exporters, said an officer from the Directorate General of Foreign Trade.
It is planning a two-pronged strategy for exporters by rolling out procedural simplification and online inter-ministerial consultation. Firstly, exporters can soon file their applications onsite with the Directorate General of Foreign Trade (DGFT).
Second, the government plans to make the office of DGFT as ‘paperless’ as possible. Once this takes effect, the office will issue authorisations to exporters in online format.
The plan is also to integrate all fiscal incentives meant for exporters under one procedure.
The second task force on transaction costs in exports, constituted in April 2013, gave its report in July last year. It made recommendations for simplification of procedures and on electronic data interface (EDI).
Minister for commerce and industry Nirmala Sitharaman had recently stated the government was evolving a strategy in terms of specific operational problems for export or import processes.
Last year India also signed an agreement under the World Trade Organization on trade facilitation. As a result, the government has to establish world-class standards in simplifying of customs norms.
Source:business-standard.com
Rupee Trades Marginally Lower At 62.18 Per Dollar
The rupee was trading marginally lower against the US dollar on consistent demand for the US currency from companies and state-owned banks.
At 2.50pm, the rupee was trading at 62.18 a dollar, down 0.06% from its previous close of 62.15 and down from its opening level of 62.11 per dollar.
“A couple of large companies and state-owned banks have been on the buying side today because there is a feeling in the market that 62 per dollar is a good level to buy at,” said a dealer with a private bank. India’s benchmark equity index, S&P BSE Sensex, was trading at 27,347.96 points, down 0.28%.
Wholesale price inflation (WPI) for December recorded a 0.10% rise from a year ago, up from an unchanged level in November and lower than expectations of a 0.40% rise which has increased expectations of a interest rate cut by the Reserve Bank of India (RBI).
The yield on India’s 10-year benchmark bond stood at 7.77% unchanged from Tuesday’s close. Bond yields and prices move in opposite directions.
Since the beginning of the 2015, the rupee has strengthen 1.38% against the dollar, second best performer in Asian currencies market after Japanese Yen, while foreign institutional investors have sold $352.5 million from local equity markets and bought $692.4 million from the debt market.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 92.05, down 0.28% from its previous close of 92.31.
Source:livemint.com
Sum received towards installation of mobile antenna on terrace was taxable as income from house prop
IT: Sum received from cellular companies for renting out of the terrace for installation of mobile antenna was taxable as income from house property and not as income from other sources since roof and terrace would be considered as part of the building
Sum paid to advertise group name 'HCL' instead of assessee's name was also eligible for input credit
Cenvat Credit : Where assessee had advertised its group name "HCL" and had paid consideration, along with service tax, for said services, assessee was eligible for input service credit thereon, subject to production of documentary evidence
Duty can't be demanded on intermediate goods if full duty is paid on final product
Central Excise : If assessee does not pay duty on intermediate goods but pays full duty on final product and duty payable on intermediate goods was eligible for credit, then, owing to principle of revenue neutrality, duty cannot be demanded on intermediate goods; and even interest component cannot be demanded
Bank couldn't be held as defaulter for not deducting tax against Form 15G/15H in absence of any defi
IT: Where Commissioner did not found deficiency in declarations filed in Form 15G/15H for non-deduction of tax by assessee-bank, order passed under section 201(1A) required fresh examination
No processing of return under sec. 143(1) even in case of refund claim if scrutiny notice was issued
IT/ILT : Section 143 of the Income-Tax Act, 1961 - Assessment - General - Clarification as to whether Provision of Section 143(1D) Permits Processing of Returns Having a Refund Claim, Where Notice under Section 143(2) Has Been Issued
Chhattisgarh High Court upheld legal sanctity of services tax levy on hotels and restaurants
Service Tax : Article 366(29A)(f) does not indicate that service part is subsumed in sale of food/beverages; hence, service tax on service portion of supply of food/ beverages in hotels/restaurants is Constitutional; however, States cannot levy VAT on service portion quantified as per service tax law
No cancellation of registration of trust on mere allegation of charging capitation fee without any e
IT: Where assessee-society was imparting medical education in accordance with object clause, registration granted to it under section 12AA could not be cancelled on basis of unsubstantiated allegation that it was collecting fee over and above fee prescribed by Government
Unabsorbed depreciation could be set-off against undisclosed income noticed in search
IT: Where aggregate losses were huge, in which undisclosed income would submerge and would virtually lose its identity, there was nothing to be brought under tax regime of Chapter XIV-B
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