No penalty even when seller didn't completely fill up declaration form as purchaser filled his part

CST & VAT : Rajasthan VAT - Where Form No. 18A accompanied with goods under transport was incomplete only to extent that seller did not fill up columns though purchaser had duly sent filled in Form on his part, imposition of penalty on plea that Form No. 18A was not filled in properly was not justified

Sum incurred towards a project which couldn't be materialized is allowable as revenue expenditure

IT : Where new project did not materialized, expenses incurred towards such project was revenue expenditure

Higher Cotton Stocks Will Put India In Comfortable Position

Cotton inventory, estimated at around 70 lakh bales at the close of 2014-15 season is expected to be the highest ever cotton stock carried by India after 2008-09.

This huge volume of carry forward cotton stock would place the country in a comfortable position, the Chairman of The southern India Mills’ Association T Rajkumar said.

He said the predominantly cotton-based textile industry in the country was subjected to crisis due to volatility in the price of the white fibre.

“There was some respite during the current season as the prices had remained comparatively stable due to reduced imports by China and the over supply in the global market,” Rajkumar added.

As international prices were ruling lower than Indian prices, CCI (Cotton Corporation of India) had to venture into MSP operations; CCI procured around 87 lakh bales during 2014-15 season. But their selling policy affected the domestic market as also the mills that used certain varieties of cotton (grown in Telangana and Andhra Pradesh) as the cotton was not released on time.

The global area under cotton is expected to drop by 7 per cent to 31.3 million hectares in 2015-16 and the production by 9 per cent to 23.9 million tonnes.

Yet, the supply position in 2015-16, industry sources say, “is expected to be comfortable as China would continue to reduce imports and downsize its reserves.”

“The cotton spinning mills, which hitherto carried 3-6 months’ cotton stock to tide over price volatility, can now reduce the inventory to 1-2 months and the mill sector can leverage the current situation by strengthening on the export front, particularly in the garments and made-up segments,” the SIMA Chief said.

He further pointed out that the CCI could sell only 12 lakh bales against 25 lakh bales offered during the last couple of months as the Corporation’s rates were high.

“By not offloading the fibre procured from Telangana and Andhra Pradesh till end-April, the Corporation gave mills a tough time, resulting in flaring up of prices.”

The industry has been pleading with the Centre to restructure the Cotton Advisory Board (CAB) by inducting industry stakeholders for better adoption of strategies and policies, Rajkumar said.

Reverting to CAB’s export estimate of 70 lakh bales during the current season, the SIMA Chief said “only around 45 lakh bales have been exported so far. It may not exceed 55 lakh bales this season as China has stopped imports.”

Voicing concern over purported rumours of Government attempting a G2G (Government to Government) arrangement to export definite cotton volumes to countries such as Thailand, China, Bangladesh, Pakistan and Vietnam, the SIMA Chief appealed to the Centre to desist from such a policy and leave the cotton market without any government interference.

Source:thehindubusinessline.com

Rupee Weakens Past 64 Per Dollar

The Indian rupee on Monday weakened past 64 against the dollar after local equity markets fell over 1,000 points in the last four days. The local unit opened at 64.04 per dollar. At 9.10am, the home currency was trading at 64.02, down 0.43% from its previous close of 63.76. The Sensex rose 0.24% or 59 points to 26,833.66 points.

 

Investors were also cautious due to the uncertainty over Greece’s debt obligations and strong US labour market report which added 280,000 jobs in May, the largest gain since December, indicating that the US economy is returning to growth after contracting in the first three months of this year, Reuters reported.

 

The local markets fell on fears of drought after the India Meteorological Department cut its monsoon forecast to 88% from 93% earlier. Also, the US jobs report reinforced expectations that the Federal Reserve could raise interest rates in 2015.

The yield on India’s 10-year benchmark bond was trading at 7.813% compared with its Friday’s close of 7.789%. Bond yields and prices move in opposite directions.

 

On Friday, the US 10-year yield rose 10 basis points to close at 2.4004% from its previous close of 2.3070. A basis point is a hundredth of a percentage point.

 

Since the beginning of this year, the rupee has lost 1.65%, while foreign institutional investors have bought $7.04 billion from local equity and $5.79 billion from bond markets.

 

Most of the Asian currencies were trading lower. Malaysian ringgit was down 1.18%, South Korean won was down 0.86%, Indonesian rupiah was down 0.55%, Philippines peso was down 0.53%, Taiwan dollar was down 0.38% and Singapore dollar was down 0.18%. However, Japanese yen was up 0.15%.

 

The dollar index, which measures the US currency’s strength against major currencies, was trading at 96.451, up 0.15% from its previous close of 96.306.

 

Source:livemint.com

No deemed dividend arise when loan is given by beneficial owner of shares to its assessee Co.

IT: Where recipient of loan, namely, assessee was not a shareholder of company giving such loan, section 2(22)(e) would not apply

DDA abused its dominant position by imposing unfair provisions in its housing scheme, says CCI

Competition Act: DDA is dominant in relevant market of provision of service for sale and distribution of flats in territory of Delhi and it had made unfair provisions in its Housing Scheme, 2010