IT : Where Assessing Officer did not consider explanation tendered by assessee regarding transactions recorded in seized diary and also overlooked working of peak credit given by assessee, income was directed to be determined on basis of highest peak of unexplained receipts and payments
Monday 30 March 2015
Co. engaged in development of software isn't comparable to a Co. rendering related development servi
IT/ILT : Where TPO made addition to assessee's ALP in respect of rendering software development services, to its AE, in view of fact that some comparables selected by TPO were improper on account of their high turnover whereas in case of other comparables there was functional difference as they were engaged in developing software products, impugned addition was to be set aside and, matter was to be remanded back for disposal afresh
Special Courts can try all offences under IPC and Companies Act based on same transactions or facts
CL : Special court to try all offences under IPC & Companies Act based on same transaction or facts
Tribunal rightly denied consideration of fresh docs at interim stage as assessee failed to submit it
Service Tax : Where Tribunal denied consideration of fresh documents at interim stage and directed that same would be considered only at time of final hearing, said order of Tribunal was valid
AO directed to pay cost to assessee as inordinate delay in release of vehicle instigated mental tort
CST & VAT : West Bengal VAT - Where Authorised Officer had detained vehicle of assessee along with goods loaded therein on 7-9-2012 and declined to release vehicle and thereafter Tribunal by order dated 17-10-2012 directed Authorised Officer to release vehicle after unloading of goods, since assessee had to undergo mental agony and sufferings for month together, Authorised Officer was to be directed to pay Rs. 10,000 by way of cost to assessee
No penalty if assessee had wrongly claimed sec. 80-IB deduction without concealing particulars of in
IT: Where assessee's claim for deduction under section 80-IB in respect of SSI unit was denied on ground that it was a case of reconstruction of business, it could not be a ground to impose penalty under section 271(1)(c) taking a view that deduction was wrongly claimed
Info downloaded from internet doesn't prove that BCCI abused its dominance in granting franchise rig
Competition Act : Where Commission recorded findings that BCCI had abused its dominant position in contravention of section 4(2)(c) relying on information downloaded from net and similar other material, same were legally unsustainable, as such information did not have any evidentiary value without proof and same could not have been relied upon by Commission without giving an effective opportunity to appellant to controvert same
In best judgment assessment, income has to be computed on basis of net profit rate instead of Gross
IT : While making best judgment assessment, assessee's taxable income from business would be computed on basis of net profit rate shown by assessee in immediate preceding year and not based on gross profit rate of said year
Sum received by private Cos. from members/directors prior to April 1, 2014 not to be deemed as depos
COMPANIES ACT, 2013 : Section 74 of the Companies Act, 2013 - Repayment of Deposits, Etc., Accepted before Commencement of This Act – Amounts Received by Private Companies from Their Members, Directors or Their Relatives before 1-4-2014 – Clarification on Applicability of Companies (Acceptance of Deposits) Rules, 2014
CBEC allows e-payment of service tax till midnight of March 31, 2015
ST LAWS : Extension of e-payment Deadline and of Banking Hours
India Rejects Bp's Application For Selling Jet Fuel
The official said BP's $477 million investment since entering in 2011 included both capital and operating expenditure, mostly in its partner Reliance Industries' offshore blocks, including the flagging KG-D6 in Krishna Godavari basin.
The government has rejected BP's application for selling ATF, saying its expenditure in India so far does not qualify it to get a fuel retailing license, but has allowed it to apply afresh with more details.
The Petroleum Ministry, earlier this month, wrote to Europe's second-largest oil company, saying its USD 477 million investment in India till date does not qualify it to begin selling jet fuel to airlines, a senior Oil Ministry official said.
A license to retail any of the transport fuels -- petrol, diesel or aviation turbine fuel (ATF) -- is contingent upon a company investing or proposing to invest Rs 2,000 crore in oil and gas exploration and production (E&P), refining, pipelines or terminals within 10 years.
The official said BP's $477 million investment since entering in 2011 included both capital and operating expenditure, mostly in its partner Reliance Industries' offshore blocks, including the flagging KG-D6 in Krishna Godavari basin.
To qualify for a fuel retailing license, an entity should have made capital investment of Rs 2,000 crore or $500 million, in line with the 2002 fuel retailing guidelines. BP's $7.2 billion spending in buying 30% stake in 21 exploration blocks of RIL is not being considered as capital investment, he said.
He added that the letter clearly states that BP can make fresh application detailing future investments to qualify for an ATF license. When contacted, BP spokesperson said, "BP has been continuously engaging with the Ministry of Petroleum and Natural Gas regarding the licensing application and we are confident of meeting the requirements. We will continue to work closely with government authorities and urge them to review the decision."
The company had, in January 2014, made the second application to start operations of Air BP, its aviation arm that sells ATF to airlines at airports. It is keen to enter the booming aviation market in Asia's third-largest economy. Jet fuel demand is expected to rise by 3-4% annually over the next few years.
After BP's application, the then Oil Secretary Vivek Rae had stated that BP was "looking at marketing of aviation turbine fuel (ATF). BP was not interested in auto fuel retailing (setting up petrol pumps) in the country.
Rae had said that ATF sale was deregulated in April 2002 and any company which is able to tie-up logistics can enter the sector. While jet fuel bunkering at most of the airports in the country is owned and controlled by state-run firms, refuelling infrastructure at new airports, built by private firms, is bid out and allows third party to access the infrastructure.
"BP can either buy ATF from local refineries like Reliance Industries or can import. That is not an issue," Rae said. Third party access to storage and refuelling infrastructure at airports would allow access to BP but the challenge would be to arrange for logistics to carry the fuel from refinery or port of import to the airport because unlike state-owned firms, BP does not own pipelines to transport it.
In 2002, India had allowed private companies to enter into fuel retailing, subject to minimum investment criteria. Reliance Industries, Essar Oil and Royal Dutch Shell got licences and opened petrol pumps.
However, RIL shut pumps and other companies went slow on expansion as the government gave huge subsidies to state-owned firms, practically making it impossible for private companies to compete. After the government deregulated diesel prices in October 2014, private firms have again begun fuel retailing.
Source:dnaindia.com
India Containerized Shredded Scrap Import Prices Up; Aluminium Scrap Prices Remain Flat
Indian containerized shredded scrap import prices advanced during last week, while Indian aluminium scrap prices remained flat.
According to The Steel Index, containerized shredded scrap prices for Indian imports rose by $4 last week to $290 a ton CFR Nhava Sheva.
The modest price rise can be attributed to both limited scrap supply to India and a feeling that unless Chinese mills lower their billet prices further then scrap has reached the bottom.
Further price rises pushed for by suppliers have been resisted by the market this week, with buyers citing poor finished steel product demand in India and the inevitable slowdown in construction that will accompany the June monsoons.
As per the Scrap Register Price Index, scrap prices for Aluminium Accessories, Aluminium ingots, Aluminium Rod Company, Aluminium Rod Local, Aluminium Sheet cutting, Aluminium utensil, Aluminium Wire remained flat during last week.
Source:metal.com
Raw Cotton Export Falls By 15 Percent In 8Mfy15
The country's raw cotton export fell by 15 percent during the first eight months of the current fiscal year (FY15) mainly due to lower demand and quality issue. Traders said that despite lower cotton prices compared to other competitors, Pakistan's raw cotton was unable to capture the world market.
Pakistan is the fourth largest cotton producing country in the world and has so far achieved a bumper of 14.7 million bales during this season. "Depreciation of dollar against Pak Rupee and lower prices in the world market have largely contributed to decline in cotton exports," said Ihsan Ul Haq, a leading cotton trader.
He said that quality or contamination was another major issue, which was hitting the country's cotton exports. "We can earn millions of dollars foreign exchange by producing quality cotton," he added.
He informed that cotton prices in India were increasing gradually, as Cotton Corporation of India (CCI) had not released the procured cotton. The rising Indian cotton prices would provide an opportunity to Pakistani traders to capture the international market as the country's commodity was still economical compared to India's, Haq said. Talking about domestic production, he said that Pakistan was likely to achieve all time high cotton crop of 14.9 to 15 million bales this year. "Current cotton season will end on April 30, after which final production statistics will be released," he added.
According to official statistics the country's cotton exports have declined by 15 percent or $23.75 million during the first eight months of FY15. The country has exported raw cotton amounting to $139.34 million during July-February of FY15 as compared to $163 million in corresponding period of the last fiscal year.
On Month on Month basis, raw cotton export has posted a decline of 64 percent in February 2014. The country's raw cotton export stood at $6.7 million in February 2015 as against some $18.9 million during January 2015.
"Although, Pakistan is losing millions of dollars foreign exchange due to decline in cotton export, however on the other side it is good for the domestic industry as we believe that this will ensure proper supply of raw material to the local textile industry, besides maintaining commodity prices at a reasonable level," Haq said.
Source:brecorder.com
Lift Ban On Shark Fin Export: Seai
The Seafood Exporters’ Association of India wants the recently-imposed ban on shark fin exports lifted.
The notification by Director General of Foreign Trade (DGFT) banning shark fin exports is “counterproductive and greatly affects the livelihood of the economically backward fishing communities living along both the East and West Indian coastlines”, said a statement issued by the Association here.
The order reflects apprehensions of environmentalists that shark population is fast depleting because of they are being caught just for their fins. However, the case with Indian fishermen is different. In India, shark is not a focussed fishery and is a by catch along with other fishes like king fish and tuna. The meat is salted and sold. Hence, shark is a decisive component for making fishermen activities economically viable, the seafood exporters have argued.
Figures from Central Marine Fisheries Research Institute show that shark catch along the East and West coasts of India has remained more or less steady over the past 20 years. Indian shark resource can be declared sustainable, the seafood exporters have claimed to back their demand for a lifting of the ban.
They have also said that the ban had been brought without any prior notice and that exporters have commitments and large stocks ready for shipment.
Source:thehindu.com
Discount allowed by ONGC to Oil Marketing Cos. for sale of petroleum products would not form part of
CST & VAT : Gujarat VAT - Where assessee for first quarter of April, 2014 to June, 2014 had given discount to Oil Marketing Companies on sale of its petroleum products as directed by Government of India in its letter dated 27-8-2004 by way of credit note dated 13-9-2004, amount of discount would not form part of sale price
Retracted statement of assessee, regarding benami concerns won’t invite addition in absence of any e
IT: Merely on basis of admission that few benami concerns were being run by assessee, assessee could not be subjected to addition when assessee retracted from such admission and revenue could not furnish any corroborative evidence in support of such admission
Govt. announces setting-up of two additional benches of AAR at NCR and Mumbai
IT/ILT : Section 245-O of the Income-Tax Act, 1961 – Authority for Advance Rulings – Creation of Two Additional Benches of Authority for Advance Rulings (Income Tax) at Specified Places
RBI asks banks to provide details of tax collections from April 1 to 3, 2015
IT/E&C/BANKING : Scheme for Collection of Dues of (I) Central Board of Direct Taxes (II) Central Board of Excise and Customs (III) Departmentalised Ministries Account – Furnishing of Statement of Residual Transactions - Financial Year 2014-15
Rs 628.2 Million Tax Received In 15 Days On Imports From India
Pakistan has imported items worth Rs 1.48 from March 1 to March 15 of the current fiscal year from India via Wagha border, while total tax to the tune of Rs 628.2 million was collected during the period.
As per the details available with Customs Today, Pakistan imported tomatoes, garlic, polyethylene, cotton and rolling machinery from India. Pakistan imported 3,709,901kg tomatoes worth Rs 173 million, while Rs 10.5 million was generated by getting income tax on the import.
On the other hand, garlic is also a big import from India and during the fifteen days of March, 755,188kg garlic was imported, while income tax collected from the import of garlic was Rs 4.73 million.
According to details, Pakistan imported 1,044,618kg fruits (HS code 709-6000) from India in 15 days, while Rs 3.79 million was generated as income tax on fruits.
Pakistan has imported 11,600 tonne soya and other relevant products from India worth Rs 613 million. The government collected Rs 3.22 million as sales tax, Rs 6.9 million as additional sales tax and Rs 25 million as income tax.
Pakistan imported polyethylene worth Rs 65 million, while the sales tax collected on poly ethylene was Rs 117.2 million, while Rs 1.6 million as income tax was also collected. Pakistan also imported carbon dioxide, machinery and a number of other items from India through Wagha border.
As a whole, on imports worth Rs 1.48 billion, Pakistan collected Rs 489 million as duty, Rs 74.3 million as sales tax and Rs 64.9 million as income tax.
Source:customstoday.com.pk
Rupee Weakens Against Dollar To 62.63
The Indian rupee on Monday weakened against the dollar in afternoon trading, tracking losses in the Asian currencies market. At 2.17pm, the home currency was trading at 62.63, down 0.22% from the previous close of 62.42. The local unit opened at 62.59 per dollar.
“As long as the Middle East continues to be a little volatile, there will be some pressure on the Asian currencies as oil prices may change drastically. Moreover, as we are nearing the end of the financial year, traders will be cautious,” said Harihar Krishnamoorthy, treasurer, First Rand Bank.
On Sunday, Retuers reported that Arab leaders at a summit in Egypt announced the formation of a unified military force to counter growing security threats from Yemen to Libya, and as regional heavyweights Saudi Arabia and Iran engage in sectarian proxy wars.
Major Asian currencies were trading lower against the dollar. The Malaysian ringgit was down 0.87%, Japanese yen was down 0.54%, Singapore dollar was down 0.35%, Indonesian rupiah was down 0.15%, South Korean won was down 0.15%, Taiwan dollar was down 0.15%. The China renminbi was up 0.13%
As fiscal year is closing, the traders are cautious with the next week getting shortened with mere two market working days—30 March and 31 March. Bank transactions will not happen on 1 April due to annual closure of accounts while 2 and 3 April will be bank holidays for Mahavir Jayanti and Good Friday, respectively. To add to their woes, the markets will be closed on 4 and 5 April due to weekly holidays.
The Sensex equity index rose 1.55%, or 424.92 points, to 27,883.56 points. The yield on India’s 10-year benchmark bond was trading at 7.756% compared with its Friday’s close of 7.777%. Bond yields and prices move in opposite directions.
Since the beginning of this year, the rupee has gained 0.6%, while foreign institutional investors have bought $5.77 billion from local equity and $6.88 billion from bond markets.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 97.724, up 0.45% from the previous close of 97.291.
Source:livemint.com
NBFCs to have net owned funds of 2 crores to commence business of non-banking financial institution
NBFCs/INDIAN ACTS & RULES : Revised Regulatory Framework for NBFCs
SEBI announces guidelines for International Financial Service Centers
SEBI/INDIAN ACTS & RULES : SEBI (International Financial Services Centres) Guidelines, 2015
CBDT reminds CIT about his responsibility to give assistance to Departmental Counsel
IT : Section 260A of the Income-Tax Act, 1961 - High Court - Appeal to – Responsibility of Cit to Give Assistance to Deparment Counsels Pursuant to Instruction No.7/2011 [F.No.279/Misc./M-42/2011-ITJ], Dated 24-5-2011
Departmental Counsels to obtain info demanded by Court from concerned CITs; CBDT reiterates
IT : Section 260A of the Income-Tax Act, 1961 - High Court - Appeal to – Responsibility of Standing Counsel in Communicating Court's Decision
IT CBDT reminds CIT about his responsibility to give assistance to Departmental Counsel
IT : Section 260A of the Income-Tax Act, 1961 - High Court - Appeal to – Responsibility of Cit to Give Assistance to Deparment Counsels Pursuant to Instruction No.7/2011 [F.No.279/Misc./M-42/2011-ITJ], Dated 24-5-2011
CBDT directs Chief CIT(TDS) to take follow-up actions with banks for deposit of TDS of March, 2015
IT : Monitoring of Budget Collections – Follow up of TDS to Be Paid by Banks
Gain arising from sale of land was taxable in hands of individual even if it was wrongly shown as in
IT : Where HUF wrongly showed capital gain on sale of land in hands of it while land was property of individual and not property of HUF, capital gain would not be income of HUF
Forex gain on export would be deemed to be derived from industrial undertaking for computing sec. 80
IT : While computing deduction under section 80-IA exchange rate difference should be treated to be derived from industrial undertaking whereas duty drawback should not be treated as derived form Industrial Undertaking
HC treated foreign gift as income from undisclosed sources as donor denied transfer of any amount as
IT : Where there existed no strong relationship between donor and donee and doner had not gifted any amount to any other person, foreign gift was to be treated as income from undisclosed source
Profit earned on sale of land by converting it into non-agricultural land on regular basis was busin
IT-I : Where assessee having purchased agricultural land, converted same into non agricultural land and sold same within a short span of time on regular basis to companies in which he was a director, income earned by assessee from said activity was taxable as 'business income'
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