Cotton Arrival In Local Markets Posts 9.36Pc Increase

About 12.67 million cotton bales have arrived in the local markets, showing an increase of 9.36 per cent as compared to the same period of last year.

Cotton arrival in Punajb posted 7.7 percent increase as compared to same period of last year, said Cotton Commissioner in the Ministry of Textile Industry, Dr. Khalid Abdullah. Talking to APP here on Monday, he said that cotton arrival in Sindh Province also registered 13.49 percent increase as compared to the arrival of same period of last year. The cotton production target for Punjab was set at 9 million bales which was revised to 8.7 million bales and Sindh production estimates were also revised at 3.15 million bales due to flash floods in the country, he added.

He said that production target of Balochistan was set at 0.018 million bales while Khyber Pakhtunkhwa given a task to produce about 0.0043 million cotton bales during last crop season.

Cotton Commissioner said that final cotton crop output figures will be received during month of March. He said that crop production for the period under review was fixed at over 14 million bales which was revised due to damages made by torrential rains and flash floods across the cotton producing areas of the country.

Dr. Abdullah said that cotton price was recorded at 89.1 Cents per pound in international market as compared to its 80.71 Cents per pound in local market where as it was registered at 83.9 Cents in Indian market.

Meanwhile, he said that seed cotton prices at local markets of Sindh was recorded at Rs. 2,500 per 40 kg in Mirpur Khas, Rs. 2,700 in Sangar and 2,900 in Khairpur.

While, in Punjab it was recorded at Rs. 3,600 per 40 kg in Rahim Yar Khan, Rs. 3,700 in Bahwalpur and 3,200 per 40 kg in Multan and, he added.

Source:-nation.com.pk

Indian Textile Ministry To Promote Jute Fabrics For Rural Roads

The Union Ministry of Textile is planning to promote use of jute geo textiles for construction of rural roads across India.Geo textiles are permeable fabrics used as an agent to strengthen the road foundations and prevent soil erosion along the banks. Jute geo textiles are said to be about 25% cheaper than other fabrics. However, this bio-degradable material is low on longevity and is best used in rural or arterial roads, which do not attract heavy traffic.



According to a National Jute Board (NJB) official, jute-based textiles are currently in use in constructing 35 ongoing rural roads, under the Pradhan Mantri Gram Sadak Yojana, across the country.



Rough estimates available with NJB suggest that consumption of the fabric increased by about 10% a year since 2010. © Malcolm Manners



While majority of the projects are in Karnataka, in South West India, the practice is gaining popularity in at least three other states, including Odisha, Madhya Pradesh and West Bengal.



Subrata Gupta, Jute Commissioner, said that the use of jute geo textiles is likely to move up substantially in the next two years. According to Gupta, project reports for nine roads spread across five states such as Chhattisgarh, Madhya Pradesh, Odisha, Assam and West Bengal have also been prepared.

Jute geo textiles production



Rough estimates available with NJB suggest that consumption of the fabric increased by about 10% a year since 2010.



In 2010, approximately 60 lakh square metres of jute geo textile were used in road development, a top official of the cell added. Out of the 80 odd jute mills operating across the country, 13 mills manufacture jute geo textile.



Despite efforts to promote the natural fibre, absence of a regulation for mandatory use of jute instead of synthetic textiles and lack of support from local administration pose challenges before the industry, it has been reported.

Challenges.

“It is an uphill task to convince various agencies and engineers the benefits of jute geo textile unless there is a mandate,” the top official said.According to him, it will also be difficult to involve more jute mill owners in production of the fibre until the demand situation improves.

Source:- innovationintextiles.com

Revenue should make TP adjustment even during tax holiday periods, says ITAT

IT/ILT: Transfer pricing computation is also to be made even for years in which assessee is entitled to section 10A exemption

HC condones delay in passing review order by department by compensating assessee for prejudice cause

Excise & Customs : In case of delay in passing of review order by Department on account of sufficient cause, instead of non-suiting Department on technical ground, it would be appropriate that dispute between parties is decided on merits by compensating assessee, for prejudice caused to it, by way of payment of costs

No winding up if there was no admission of debt and petition was filed after lapse of three years of

CL : Winding up petition filed after lapse of three years when alleged unpaid invoices were issued would be hit by limitation

Vulnerable Gold Likely To Trade Sideways

Gold is likely to trade sideways in the domestic spot and futures market on Tuesday as the market weighs the demand, especially from China, against waning investor interest.



Overnight, the market saw gold prices tumbling $30 an ounce all of a sudden before the trading was stopped and then resumed. Since then, gold managed to crawl back to the levels seen on Monday.



But these are grim reminders of the pressure that gold is likely to come under in view of uncertainty among investors. On Monday, falling equities market and a flat dollar helped gold gain.



The other factor pushing up gold was shipments to China from Hong Kong doubled to over 1,000 tonnes till November, a clear signal that India has been overtaken.



Gold holdings in SPDR gold trust, the biggest exchange-traded fund backed by the yellow metal, was unchanged at 794.62 tonnes, while data from the US Commodity Futures Trading Commission showed that funds and money managers increased their bullish bets on gold.



In India, currency could play a role, albeit a minor one. Any drop in the rupee against the dollar could make commodities such as dollar, crude oil and vegetable oils costlier.



Spot gold, gold futures



In early Asian trade, spot gold was quoted at $1,242.55 an ounce and gold futures maturing for delivery in February at $1,241.70.



NCDEX spot gold was unchanged at Rs 29,600 for 10 gm. MCX and NCDEX gold February contracts are likely to trade below Rs 29,500.



Crude oil is likely to head lower on bets that stocks in the US rose. But cold weather in the US and the Libyan factor could cushion it from falling sharply.



Brent crude February contracts were quoted at $107.25 a barrel and US crude at $93.72.



Demand for soyameal and concerns that dry weather in Argentina could put more stress on the soyabean crop are likely to help the oils and oilseeds market to keep its head above water. Pressure is likely from the continuous arrival of domestic oilseeds crop.





Chicago Board of Trade soyabean contracts maturing for delivery in March were down at $12.70 a bushel in early Asian trade. Crude palm oil March contracts opened lower at 2,579 ringgit or $784 a tonne.



Fears that cold snap in the US could affect the winter wheat, despite higher area under the crop, and higher export enquiries are likely to keep wheat firm. Corn (industrial maize), too, could gain in tandem and also due to short-covering.CBOT wheat for March delivery ruled at $6.07 a bushel and corn for the same month at $4.27.

Source:- thehindubusinessline.com

Indian Rupee Depreciates 15 Paise To 5-Week Low Of 62.31 Against Us Dollar

The Indian rupee fell 15 paise to close at a five-week low of 62.31 against the dollar today amid bearish local stocks and importer demand for the US currency.Capital outflows from the equity market aided the rupee's decline, while a weakening US dollar overseas helped the Indian rupee to come off the day's low, a forex dealer said.



At the interbank foreign exchange market, the Indian rupee resumed sharply lower at 62.35 a US dollar from the previous close of 62.16. It moved in a range of 62.24 to 62.4650 on alternate bouts of demand and supply.



The Indian rupee closed at 62.31, a fall of 15 paise or 0.24 per cent. This was the lowest level for the Indian rupee since closing at 62.36 on December 3.



"It started the session on a weaker note today, tracking a strong dollar index and weak Asian currencies. Additionally, a falling euro seemed to have added pressure on the rupee. US dollar has strengthened against overseas currencies on upbeat outlook by the US central bank," said Abhishek Goenka, CEO of India Forex Advisors.



The HSBC/Markit Purchasing Managers Index for India's services industry fell to 46.7 in December from 47.2 in November as new orders declined. It was the sixth consecutive monthly decline in output and the longest period of continuous reduction since the 2008/2009 global financial crisis.



The benchmark 30-share S&P BSE Sensex continued its slide for the fourth straight session and closed 64 points lower. Overseas investors sold a net Rs 318.91 crore of shares today after net sales of Rs 18.06 crore last Friday, as per provisional data.



"The US dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, is trading weak for the day, which helped the Indian rupee to recover from its intra-day low," said Pramit Brahmbhatt, CEO of Alpari Financial Services (India). "During the day it depreciated almost half per cent, taking cues from local equities which traded weak and closed down." Continued receipts by exporters kept forward US dollar premiums under pressure. The benchmark six-month forward dollar premium payable in June eased to 246-248 paise

Source:- financialexpress.com

Mere delay in filing form for accumulation of surplus funds of trust won't lead to denial of sec. 11

IT : When surplus funds were accumulated and deposited with a nationalized bank, delay in filing Form No. 10 should have been condoned by Assessing Officer

Even prior to 1-4-2008, no input credit available on outward transportation from factory to buyer's

Cenvat Cedit : Definition in rule 2(l)(ii) of CENVAT Credit Rules makes it clear that outward transportation charges or taxes paid in regard thereto are claimable only with regard to transports made from one place of removal to another place of removal; no credit was available for transport upto buyer's premises prior to 1-4-2008, or thereafter

Demand arising merely due to interpretation of conditions related to SSI exemption doesn't attracts

Excise & Customs : Where issue involved 'whether value of intermediate product is includible in gross value of clearances for purpose of SSI-exemption' required interpretation of relevant conditions of SSI notification, no penalty could be levied on assessee in respect of demand depending upon interpretational exercise

Sec. 54 relief not available on mere transfer of tenancy rights

IT : Where assessee was not owner of property but held mere tenancy rights in respect of property, exemption under section 54 was not allowable

HC slams revenue for holding payment via Cenvat credit instead of PLA as invalid in absence of any d

Excise & Customs : Merely by payment of duty through use of Cenvat credit instead of payment in cash/through PLA, there is neither evasion of duty nor any loss to revenue; hence, such payment cannot be held invalid so as to seek payment in cash with interest and penalty.

No reassessment to deny sec. 80-IB relief on housing projects if AO was aware of sale of open plots

IT: Where while completing scrutiny assessment Assessing Officer was aware that assessee had sold open plots also and concluded that assessee was eligible for claim of deduction under section 80-IB (10) in relation to 'eligible profits of business' of housing project, reopening of assessment on ground that housing project was not complete as per plan approved by local authority could not be sustained

No penalty leviable on assessee as non-carrying of Form ST-18A by driver was bona-fide mistake

CST & VAT : Though Rajasthan Sales-tax Act provides that Form ST-18A is to be produced mandatorily by driver of vehicle at check-post, however, if all other relevant papers/documents like bills, vouchers and authorization letter are available with driver and Form ST-18A was missed by driver mistakenly, no penalty should be levied

Restructuring of existing roads would create new infrastructure facility; eligible for sec. 80-IA re

IT : Work involving strengthening and improving of existing road may be considered as new infrastructure facility eligible for deduction under section 80-IA

Excise laws don't mandate assessment on successors; it permits only recovery of duty from them, rule

Excise & Customs: Central Excise section 11 empowers only recovery of dues already assessed on predecessor; assessment of duty must be made on predecessor and a successor is liable only for recovery of liability once assessment order is passed and adjudicated against predecessor

TDS provisions won't get attracted on payer if it made payments without claiming them as expenditure

IT: Once assessee has not claimed expenditure qua reimbursement of expenses, assessee is not liable to deduct tax at source

Mere reimbursement of inspection charges by customers are not includible in assessable value

Excise/Customs : Third party additional inspection charges incurred by assessee on behalf of their customers and, subsequently, reimbursed to them by their customers are not includible in assessable value of excisable goods

ITAT rightly deleted additions as assessee reconciled sales figure as per TDS certificate with books

IT: Where Tribunal deleted addition made by Assessing Officer taking a view that assessee had been able to reconcile sales figures appearing in TDS certificate with those recorded in books of account, said finding of Tribunal being a finding of fact, no substantial question of law arose therefrom

Goods aren't liable to confiscation merely on non-fulfilment of export obligation under EPCG Scheme

Excise & Customs : Where notification relating to EPCG scheme itself provides that, in event of non-fulfilment of export obligation, importer has to pay duty and interest, such non-fulfilment of export obligation cannot amount to violation of conditions of notification so as to render goods liable to confiscation

Higher Supply, Export Demand Likely To Keep Cotton Price Firm

Cotton ticked higher on Friday, supported by a weaker dollar and falls in stockpiles, but still posted its biggest monthly loss since June on expectations of growing supply and tepid demand going forward.



Cotton prices have bottomed out and are expected to remain moderately firm in January. However, profit booking at higher levels is likely to keep prices under check.



Cotton prices have been sliding since June last year. In May, kapas prices in the futures market were around Rs 1,100 per 20 kg lot. Similar to other kharif crops, a bearish trend has been prevailing on the cotton counter due to good monsoons.



Reports about better sowing activity started pulling down prices in June. Gujarat reported 10 per cent rise in sowing and all the other cotton-producing states also got better rainfall compared with 2012-13. In August, the price was at Rs 950. Short covering saw price rise briefly to Rs 1,070 level, but by November, it came down to a low of Rs 905 in the futures market.



“Usually arrivals start by October and the market will wait for the prices to further cool down. The demand being low during November, the price came down to Rs 905 level. Usually cotton demand picks up after Diwali,” said Ajitesh Mullick, assistant vice-president for retail research at Religare Commodities.



As per November estimates of the Cotton Association of India, the country produced 38.5 million bales (a bale is 170 kg) of cotton in 2013-14 compared with 35.67 million bales in 2012-13. India consumes around 25 to 26 million bales of cotton, while the remaining stock is usually exported.



In the past few weeks, there have been reports about demand picking up in both domestic as well as export markets. According to market watchers, exporters have started receiving orders from China. However, there have been also reports about the Chinese government planning to end its cotton stockpiling. Much will depend on the policy decision of the Chinese government, as that country is a major importer of Indian cotton.



Further, arrivals came down in December after a fall in price in November as farmers held back their stocks expecting the price to rebound.



In the past few days, cotton price has bounced back from the November low. NCDEX kapas April contract quoted around Rs 1,020 last week. Kapas has support at Rs 950 and resistance of Rs 1,050.



“The price will remain moderately firm in the near term. However, there could be profit booking at higher levels and this will bring down the price slightly. If the US dollar gets stronger against the rupee, there could be good export demand for cotton. This can also firm up domestic price,” said Mullick.

Source:- mydigitalfc.com

Even advances given by trust to fulfil its objects to be deemed as application of income

IT: Where assessee-society was formed at instance of Government with object to create world class automotive testing, validation etc., advances given by assessee towards implementation of project had to be treated as application of income and not as an investment out of grant received by assessee

India’S Aim Break Ceylon Tea Monopoly In Russia Chairman, Indian Tea Association

Asia Siyaka Tea Market report last week quoted the Indian Tea Association’s (ITA) chairman as saying at the Annual General Meeting of the Association that Sri Lanka’s monopoly of the Russian market should be broken.



Chairman ITA Arun A. Singh said, ‘It is time to break the Sri Lanka monopoly of the Russian market. Exports to Russia ( of Indian teas) should increase in the days to come’.



The report further said an industry delegation led by the ITA and backed by the Indian Tea Board is expected to visit Russia in May this year to promote Indian tea and take a market share from rival exporter Sri Lanka.



We were unable to seek clarification on this emerging competing element, from the Sri Lanka Tea Board, but industry sources who declined to be quoted were somewhat sceotical in their assessment that this new development could affect the Ceylon Tea brand. They said the Russian pallet was more or less attuned to Ceylon Tea as their favourite beverage. Additionally, India absorbs most of the tea produced there.



Russia imports about 180,000 tonnes of tea annually. Sri Lanka accounts for about 30 percent of these imports. Indian tea absorption in the Russian market is about 25 percent. Singh further said Ceylon Tea on retailer shelves fetches around $ 5, whereas Indian tea sells at around $3 . 50



Singh further said, ‘While Darjeeling, Assam, Nilgiri, are household names worldwide the lesser known names, for instance, Dooar, Terai, and Cacher, should attract stronger promotion.’



He also said it was time they pursued other markets where Ceylon Tea was strong.He said Iran and some other Middle East markets should have greater market shares of Indian teas.



Sections among tea circles here were not quite certain how they would react faced with this new threat. They said the Colombo tea auctions did not reflect panic among buyers or shippers. The tea auctions, they said, were an indicating barometer of envisaged market trends.



Last week Colombo continued to record good prices. Low growns particularly had good demand. However Westerns, Nuwara Eliyas and Uda pusellawas did not fare so well. Although year end crop returns were not at hand, tea brokering sources said 2013 was a good year for Ceylon Tea.

Source:- island.lk

Thirty days period specified for filing complaint under Negotiable Instrument Act excludes default d

Negotiable Instruments Act : For purpose of calculating period of one month which is prescribed under section 142(b) of Negotiable Instrument Act, period has to be reckoned by excluding date on which cause of action arose

ITAT calls for exclusion of comparables in which high operating margin occurred due to extraordinary

IT/ILT : Where assessee had entered into international transactions with its associated enterprise and Commissioner (Appeals) selected certain companies as comparable to assessee for determination of ALP, since there was an extraordinary event which resulted in high operating profit margin of said companies, Assessing Officer was directed to exclude above comparable and re-work out arm's length margin

HC calls for collection of taxes like honeybee; reduces pre-deposit requirement realizing assessee's

GST : Where assessee has claimed financial crunch and also that competitors/opposite parties may close down business of assessee, requirement of pre-deposit much be reduced so that tax can be collected like a honeybee, without damaging flower itself

Petrorabigh Exports First Shipment From King Abdullah Port

Rabigh Refining and Petrochemical Company (PetroRabigh) on Sunday exported the first shipment of petrochemical products from King Abdullah Port, located at King Abdullah Economic City in Rabigh.

The shipment represents the first export operation of the port. The cargo, which consists of 54 containers of polymer material, was shipped on board a carrier heading to Singapore.

“The port is an important infrastructure investment which is, among other things, aligned with Saudi Arabia's strategy of developing downstream industries so as to drive value and job creation,” commented Jarmo T.

Kotilaine, a regional analyst.Abdullah bin Saleh Al-Suwailem, president and CEO of PetroRabigh, said: “The shipment is a significant step forward in the export operations of PetroRabigh products due to the proximity of the port to the headquarters of the company's operations.”

It would contribute to the reduction of logistics costs for freight, accessing global markets faster, and relieving congestion at Jeddah Islamic Port, he said in a statement to Arab News.

PetroRabigh processes up to 400,000 barrels per day of Arabian Light crude oil, and uses 1.2 million tons per year of ethane as feedstock to produce a variety of petrochemical products.

Source:- arabnews.com

Gold Is No Longer A Safe Investment

The crash in gold prices was one of the biggest shockers of 2013. A correction had already begun at the fag end of 2012, but prices really crashed in 2013, triggered by fears that the US Federal Reserve would scale down and do away with the economic stimulus.



However, Indian investors in gold were cusioned against the crash due to the fall in the rupee. As the dollar became costlier, gold continued to fetch a higher price in India. Besides, the government introduced certain measures that pushed up the domestic price of the metal. Import duty on gold was hiked from 2% to 10%, increasing the landed cost of gold. Quantitative restrictions were also imposed on gold imports, such as the RBI's 20:80 scheme, which mandates that 20% of imports need to be re-exported .



As a result of these measures, domestic prices of gold have receded by only 4.3%, compared to the 28% drop in global gold prices during 2013.



This gap in the price of gold has created an opportunity for 'legal smuggling' of the metal. NRIs returning to India after spending more than six months abroad are allowed to carry up to 1 kg of gold. Jewellers are using NRIs as carriers , even offering to pay for their air fare if they bring in gold for them. Even if they pay the import duty of 10% on bars and coins or 15% on jewellery, the arrangement works out to be profitable (see table).



The wide difference in the domestic and international prices of gold have led to another anamoly in the capital market. The market price of gold ETFs, which is based on the domestic price of the metal, is far higher than their NAVs, which is based on the landed cost of gold. The difference is as high as 10%.



Since gold has rallied for more than a decade now, most investors had begun to believe that gold prices can only go up. However, the crash in gold prices has shattered this myth, at least for the global investors. This explains why they are now dumping gold. The gold holdings in SPDR Gold Shares, the largest gold ETF in the world, have came down from 1,351 tonne at the end of 2012 to just 814 tonne now, a fall of around 40%.

Source:- timesofindia.indiatimes.com

Rupee Opens Lower At 62.35 As Dollar Strengthens On Fed Outlook

The Indian rupee on Monday opened lower at 62.35 per dollar against its Friday’s close of 62.15, as the US currency held steady, supported by an upbeat outlook on the US economy by outgoing Federal Reserve chairman Ben Bernanke that fanned expectations of more stimulus reduction from the US central bank. .

The dollar index, which measures the US currency’s strength against major currencies, was trading at 80.85, up 0.07% from the previous close of 80.79.

The yield on India’s 10-year benchmark bond was trading at 8.837%, compared with its Friday’s close of 8.837%.

At 9.08am, the domestic currency was trading at 62.37 per dollar, down 0.34% from previous close. India’s benchmark Sensex was trading at 20,913.79 points, up 0.3%.

The HSBC Services Purchasing Managers’ Index, compiled by Markit, will be out at 10.30am for December on Monday. The services PMI for November stood at 47.2.

Traders will be on the lookout for possible RBI intervention after talks that the central bank intervened in Friday trade to prop up the rupee gainst the dollar.Foreign funds were net sellers of $2.9 million in stocks on Friday, provisional exchange data showed.

Source:- livemint.com

NBFCs abstained from making provision towards housing loans guaranteed by Credit Risk Trust, says RB

NBFCs/INDIAN ACTS & RULES : Non-Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007

Rollover of existing guarantees not to be reckoned as fresh financial commitments for ODI purposes:

FEMA/ILT : Overseas Direct Investments - Rollover of guarantees

No evasion penalty if impugned ST would be otherwise eligible for credit

ST : Where assessee was paying excise duty on final products manufactured by it and could avail Cenvat credit on amount of service tax not paid by him under reverse charge, revenue neutrality could be invoked to set aside penalty under section 78

Sec. 10B relief available on manufacturing of plants even if they were dismantled prior to export

IT : Where plants were supplied in various sub-assemblies and these assemblies and components were transported to Export Processing Zone and after performing certain operations same was dissembled prior to export, deduction under section 10B to be granted to concerned assessee

Assessee can't challenge beneficial provision which is prospective, seeking to provide retro-effect

CST & VAT : Legislature may decide whether a law should be prospective or retrospective; VAT amendment providing for optional and alternative method of assessment of VAT on medicines cannot be challenged on ground of not being retrospective

Limitation period for assessment will start on pronouncement of vacation order and not from its rece

IT: Limitation period for completing assessment would start from date when High Court vacated interim order and not from date when Assessing Officer received such vacation order

'Feed supplement' is 'poultry feed' and is exempt from Haryana GST

CST & VAT : Sale of feed supplements such as proteins, salts and minerals, vitamins, antibiotics and coccidiostats would also constitute sale of "poultry feed" because each of feed supplements can individually be given to poultry; accordingly, sale of feed supplements would also be exempt from Haryana GST

An object to organize 'Maharaja Agrasen Jayanti' especially for Agarwal community isn't charitable i

IT : Where assessee in preceding year of making registration application had mainly organized Shree Maharaja Agrasen Jyanti meant for Agarwal community only, objects of assessee were meant for benefit of a particular community and, therefore, it was not eligible for registration

Copies of original docs to be relied upon in prosecution proceedings initiated due to evasion of exc

Central Excise : In view of sections 36A and 36B of Central Excise Act, 1944, prosecution side cannot only file copy of documents as mentioned under section 36B but, prove such copies as original; there is no need to file or show original documents before trial Court

An erroneous and unacceptable claim of set-off of losses can't be a reason to slap concealment penal

IT : Where Assessing Officer did not reject assessee's claim of set off of brought forward loss specifically by passing an assessment order, similar claim raised by assessee in subsequent assessment year would not amount to furnishing of inaccurate particulars of income so as to pass a penalty order under section 271(1)(c)

Commission disallowed on assessee's failure to prove actual rendition of services by recipient of su

IT: Where assessee in support of commission expenses, failed to prove that it had infact availed of certain services from recipients of commission, authorities below were justified in rejecting assessee's claim in respect of said expenses

Road construction work for power generating company isn't liable to service tax

CST & VAT : Where Commissioner (Appeals) had himself in different case pertaining to same service recipient held that road construction work for power-generating company is not liable to service tax; he cannot ask for huge pre-deposit in same issue pertaining to same service recipient in case of different service provider

No concealment penalty if income offered in revised return after search was accepted by revenue

IT: Where additional income was surrendered by assessee, in revised return of income which was accepted by department, penalty under section 271(1)(c) on said amount was not leviable

Review order which authorizes filing of appeal by department under Central Excise can't be challenge

Excise & Customs : Order of Committee of Commissioners under Central Excise section 35B authorising filing of appeal by Department cannot be challenged on merits in Court because said opinion is a prima facie opinion; such an order may be challenged only on ground of non-application of mind, absence of material and lack of bona fides

ITAT slams CIT for taxing global income of 'resident but not ordinarily resident'; order of CIT set

IT/ILT : Where assessee was not ordinarily resident, order of Assessing Officer excluding income earned outside India was not erroneous or prejudicial to interest of revenue

Basmati Rice Export To Iran Reaches Record High

India’s agriculture and processed food exports to Iran have more than doubled both in value and quantity terms, in the last one year, mainly on account of an exceptional surge in Basmati rice exports. Consequently, this year India’s export of Basmati rice export to Iran could be highest conceivable past.



In value terms, India’s Basmati rice exports to Iran increased by 137%, or nearly three folds, while in terms of quantity it increased by 77%, between April and September 2013 and 2014, data from Agricultural and Processed Food Products Export Development Authority (APEDA) show.



“This year there has been a great surge in Basmati rice exports to Iran. While the quality of rice exported from India has improved, there could be other reasons for the rise in exports. It might be the reason that the Iranian government wants to stock up their inventory of rice,” said R Sundaresan, Executive Director, All India Rice Exporters Association.



After US sanctions against Iran, India’ export to Iran had suffered a setback. However, with Iran being a key oil supplier to India, both countries reached a new payment mechanism in 2012. Under the method, 45% of India’ crude payments were made in rupees through UCO Bank.



The rupee resources were being used for making payments for Indian export. Thus, with Iran unable to procure food grains from other countries, India’s rice export has witnessed a surge in volume.



About 85% of India’s agriculture and processed food exports to Iran are on account of Basmati rice, which was affected after the US sanctions.



Between April and September 2013, India’s total food exports to Iran was valued at Rs 7104 crore, against Rs 3043 crore in the same period last year, a rise of nearly 133%, according to Apeda. In terms of quantity, the amount of exports increased by almost 104% between April and September this year over the same period last year.



However, India’s brisk export to Iran may be checked by the recent deal of six major countries (US, France, Germany, Britain, China and Russia) and Iran to ease Iran’s nuclear plans in lieu of temporary relief over sanctions.

Source:- business-standard.com

Gratuity paid on employee's promotion to common cadre held allowable if he ceased to be in employmen

IT : Where employees of assessee-co-operative bank on promotion ceased to be employees of assessee and inducted in apex bank, gratuity paid to such employees on cessation of their employment with assessee was allowable as deduction

Bona-fide purchaser can't be made liable to tax dues of seller of property, rules HC

CST & VAT : If bona fide purchaser of property has purchased property for adequate consideration and without notice of any tax dues of seller and after making requisite enquiry from Registration Department, he cannot be made liable for tax dues of seller

FDI ban on Air India won’t hamper competition in relevant market, says competition authority

Competition Act : While an additional option was given to all private airlines to finance their capital needs through FDIs from foreign airlines, not allowing such FDI in Air India would not hamper competition in relevant market

Indian Steel Companies To Benefit As China Cuts Exports

Less than a year ago, several brokerages discontinued actively tracking industrial and cyclical stocks as demand weakened and economic growth plummeted to a 10-year low. These sectors are now seeing a revival of interest as the belief is that a combination of global and local factors will see a revival in demand.



According to Credit Suisse, the cyclical defensives price-to-book gap in India is the biggest in the region. While not all cyclicals are showing promise in equal measure, analysts are betting big on steel stocks.



Goldman Sachs initiated coverage of three steel stocks — Tata Steel, JSW Steel and Steel Authority of India — in December as it believes that India will benefit from the improved global steel outlook. The brokerage expects global steel consumption to rise by 4.7 per cent to 1.5 billion tonnes in 2014, driven by rising demand from Europe and China.



There are several domestic as well as global factors that are likely to aid the profitability of select steel players in India. For starters, global steel prices have strengthened through 2013. In the fortnight ending December 30, CIS Black Sea export prices gained 0.9 per cent to $537.5/tonne, while hot rolled sheet prices remained intact at $559/tonne. Long product prices in India also strengthened in December. JSW Steel is expected to raise steel prices by Rs 700-1,000/tonne, claim analysts.



Even though underlying demand in India remains weak, Goutam Chakraborty of Emkay Global believes that a weaker rupee and some supply constraints have helped domestic steel prices. There’s good news even on the raw material side. In the last week of December, 62 per cent grade iron ore prices have dipped and they are unlikely to see an upward movement in 2014.



India is going to turn into a net exporter of steel in FY14 as higher capacity additions and flat demand will force many companies to look at overseas markets. A weak currency and slowing exports from China are expected to aid Indian exports. Due to environmental concerns, China is slated to cut steel capacity by 8 per cent by FY17. China is estimated to have exported 52 million tonnes of steel in 2013 and this is expected to decline by 11 million tonnes by FY15 to 41 million tonnes. This would be an opportunity for Indian steel makers. With global demand for steel increasing and China cutting exports, Indian steel makers like Tata Steel, JSW Steel and SAIL stand to gain. JSW could be a major beneficiary of this as its capital expansion phase is over and the company is expected generate free cash flows from FY15.

Source:- business-standard.com

Draft Loe On Vehicle Imports Ready

The government has prepared a draft of bilateral Letter of Exchange (LoE) for allowing transport of vehicles, imported from third countries via India´s Kolkata Port, to the Nepali border ´on their own power´.



“We have prepared a draft of LoE and are in the process of getting inputs from line agencies such as the Department of Customs (DoC), foreign ministry and law ministry. After incorporating their inputs, we will forward the draft to the cabinet for approval,” an official at the Ministry of Commerce and Supplies (MoCS) told Republica on Friday.



Once it is approved by the cabinet, the MoCS will send the LoE to India via foreign ministry.The recently held Inter-government Committee (IGC) meeting decided to allow Nepal to transport vehicles imported form third countries to the Nepali border on their own power.

The Nepal-India Transit Treaty requires traders to use only wagons or containers to transport such vehicles to Nepal.The MoCS has already sent another LOE, on implementation of the agreement that allows Nepal to export third country goods via the Indian port, to India. The agreement was signed at the IGC meeting held in Kathmandu in December 2013.



“We have already forwarded the LoT to the concerned Indian authority. We are waiting for the southern neighbor to sign it,” the official added.

Traders are facing difficulties in exporting different goods and equipment brought to Nepal from countries other than India for various purposes like trade fairs, aviation, diplomatic purposes, and development projects, as bilateral transit treaty bars Nepal from sending back goods to their countries of origin through the Indian territory.



In June, India had stopped allowing third country vehicles imported by Nepal through its port. Similarly, it had also stopped allowing export of third country goods to the countries of origin citing bilateral transit treaty.



Following diplomatic pressure from Nepal, India has lifted the restriction till January 9.

“We are hopeful that both the LoEs will be signed by both the countries before January 9,” the official added.



In a bid to expedite implementation of the agreement signed in IGC, the MoCS has prepared an initial draft of a work plan, setting deadline and specifying executing agencies.

“We will sit with line agencies soon to finalize the draft so that implementation process becomes smooth,” the source added.

During the meeting, both the countries agreed on most of the points that are important for bilateral trade.

Source:- myrepublica.com

Rupee Recovers From Intraday Lows; Closes At 62.155 Per Dollar

The Indian rupee recovered from its intraday lows on Friday, to close stronger than its previous close, on possible intervention by the Reserve Bank of India (RBI) even as other Asian currencies weakened against the dollar and the domestic stock market fell.

Rupee ended at 62.155 a dollar, up 0.18% from its previous close of 62.2675. The domestic currency had opened at 62.355 and slid to 62.56 in the day.

Lower manufacturing data and a weak equity market also weighed on the rupee. The manufacturing purchasing managers’ index (PMI) released by HSBC Holdings Plc and Markit Economics on Thursday was at 50.7 in December, lower than November’s 51.3. A figure above 50 indicates expansion.

“Rupee weakness will continue for quite some time,” said Pramit Brahmbhatt, chief executive officer of Alpari Financial Services (India) Pvt. Ltd.

“Both the US and the Japanese economies are recovering and soon crude prices will shoot up. This year is going to be a dollar year,” said Brahmbhatt, adding rupee should touch 63.50 a dollar by January end.

From January 2013 to date, the rupee has weakened 11.52% and is the third highest loser in Asia after Indonesian rupiah and Japanese yen.

Overnight though, the dollar index, fell, trading at 80.583, down from the previous close of 80.63.

India’s benchmark equity index Sensex closed at 20,832.84, 20851.33, down 0.18%, or 37 points, from its previous close.

Source:- livemint.com

Input entitles to lower sales-tax even if it's not used in manufacturing process if manufacturing un

CST & VAT : If assessee has manufacturing unit inside State, benefit of concessional rate of Karnataka Sales-tax on industrial inputs is available even if process in which such inputs are used does not amount to 'manufacture'

No concealment penalty if tax was correctly paid by assessee and only year of taxability was in disp

IT : Where assessee had on its own paid tax on amounts in question and it was not a case where assessee had concealed facts of earning of income rather it was a case where year of taxability of income was in dispute, penalty for concealment of income could not be imposed

Zinc dross isn't a manufactured product; not liable to duty even if it's a marketable product

Central Excise : For goods to be dutiable, conditions of section 2(d) (movable and marketable) and section 2(f) (manufacture) have to be satisfied; therefore, zinc dross arising in course of manufacture of galvanized tower parts is not liable to duty as it is, prima facie, not a manufactured product; though it may be marketable

[Indian Custom Non-Tariff Notification] : Amends Notification No. 36/2001-Customs (N.T.), dated the 3rd August, 2001

Re-assessment can be completed even within time specified for assessment under sec 143(3)

IT: Even where notice under section 143(2) had been issued and time provided for regular assessment under section 143(3) had not been expired, reassessment is permissible

Observation of Dept. in docs maintained by assessee but not supported by any sample wasn't convincib

Excise & Customs : If department, on inspection, detects that goods of a particular specification are being manufactured and it has drawn samples for verifying that, department is entitled in law to presume that (until manufacturer proves contrary) goods of same specification are continued to be manufactured

Occasional dealing in properties can't be considered as adventure in nature of trade; Tribunal says

IT : If an assessee is not ordinarily engaged in business of purchase and sale of properties, primary inference would be that any transaction of purchase/sale of land is not an adventure in nature of trade

No intention to evade duty in revenue neutral cases; it's a strong ground to set aside evasion penal

GST : If amount payable by one unit of assessee would have been allowed as credit to other unit of same assessee, entire issue is revenue neutral and, therefore, evasion penalty imposed is liable to be set aside on ground of revenue neutrality, as there cannot be any intention to evade duty

Provision for gratuity and leave encashment isn't a contingent liability; deductible as business exp

IT: Provision for diminution in value of assets debited to profit and loss account is not required to be increased as per clause (i) of Explanation 1 to section 115JB to compute book profit under section 115JB when assessee has debited diminution in value of assets as a provision to profit and loss account

Mango pulp based slice is merely a drink and not a 'food article'; liable to Delhi Sale Tax at 8%

Sales tax : Mango pulp based drink 'Slice' is merely a drink/thirst quencher; and not a 'food article' as per common parlance test; hence, it was liable to Delhi sales-tax only at 8 per cent

Sum paid for usage of wharf to be treated as 'rent'; liable for TDS under sec. 194-I

IT: Wharf charge is payment for using land together with structure on shore of navigation water and, thus, would be treated as rent under section 194-I

Insufficiency of funds is reasonable cause for failure to pay taxes in time; calls for penalty waive

SERVICE TAX : Where, because of significant loss of income coupled with major increase in costs, assessee did not have money available to pay taxes on due dates leading to default, there was a reasonable excuse for defaults and therefore, penalty was not leviable

Assessment order held erroneous as it failed to justify an alleged claim; sec. 263 revision allowabl

IT: Where though Assessing Officer called for details of alleged expenditure but he had not given reasons for allowing claim of assessee, assessment order so passed was prejudicial to interest of revenue

Add. Commissioner can’t exercise revisionary powers without his jurisdiction fixed by commissioner

CST & VAT : Where Additional Commissioner : (1) revised assessment order without jurisdiction having been granted to him by Commissioner and (2) requested Commissioner to issue notification conferring jurisdiction on him, said order was liable to be set aside and matter was remanded back

2014 To Be A Good Year For Vietnamese Exports

The assessment is based on the country’s positive export growth in 2013, rising by 15.3 percent (or 132 billion USD) over the previous year and surpassing the target of 126 billion USD.Strong growth was seen in almost all of Vietnam’s export markets such as the US, Japan, European and ASEAN countries.

Vietnam enjoyed 22.5 percent growth in the US this year with revenue of 25 billion USD, accounting for one fifth of the country’s total figure.In 2014, the US will continue to be Vietnam’s largest market with 10 percent growth, said Dao Tran Nhan, Trade Minister-Counsellor in the US.

However, Nhan also reminded enterprises of difficulties in entering the US market caused by trade barriers, and anti-dumping and subsidy lawsuits launched by the US side against Vietnam’s high revenue generating products such as shrimp, tra fish, catfish and apparel.

He held that in order to maintain stable exports to the US, it is necessary for the firms to update and study the country’s new policies in the field.

Apart from the impetus from 2013’s good results, trade deals that Vietnam is negotiating for are also expected to open up new opportunities for Vietnamese exports.

The Trans-Pacific Partnership (TPP) agreement involving Vietnam is being finalised, while five rounds of the free trade agreement between Vietnam and the EU have also concluded, with the rest expected to be finished in 2014.

According to Minister of Industry and Trade Vu Huy Hoang, the 12 countries engaged in the TPP deal make up 40 percent of global GDP and over 30 percent of total world export-import revenue.

Joining the TPP means Vietnam will enjoy chances to extend its market to the world’s leading economies like the US and Japan, he said.

“Vietnam’s strengths in agricultural products, apparel, leather and coffee can record even higher export growth. On the other hand, Vietnamese businesses will also suffer from fierce competition. Unless they improve their competitiveness, the risk of losing market share to competitors is high,” Minister Hoang commented.

Meanwhile, Vu Ba Phu, Minister-Counsellor in Belgium and Luxembourg, said the European Union will still be the largest market for Vietnamese apparel, leather and agricultural products.

He noted that total trade between Vietnam and the EU hit nearly 30 billion USD in 2013.

Once the Vietnam-EU free trade agreement takes effect, Vietnamese enterprises will benefit from tariff preferences and fewer trade barriers.

“Chances are abundant but challenges are great too,” said Phu. “The important thing for Vietnam is overcoming itself, improving product quality and design, and enhancing its competitiveness in order to maintain markets,” he added.

To maintain growth in 2014, Minister Hoang said the ministry will exert more effort to strengthen promotion and expand export markets, while speeding up negotiations for trade agreements and making full use of the opportunities created from the deals.

The ministry will step-by-step incorporate Vietnam in the distribution system abroad by boosting dialogues with global distribution chains and focusing on building Vietnam’s trademark in promising markets, thus ensuring the fulfilment of the target to record about 10 percent growth in 2014, he said.

Source:- english.vietnamnet.vn

Tata Steel Says Q4 Outlook Positive, Retail Sales Fine

Tata Steel, which so far has had no difficulty in selling whatever it had been producing, says it is “positive” on the steel industry for the fourth quarter of the current fiscal and that while the steel market in the country had been picking up in terms of prices, it was the retail market that was doing “fine” of all market segments the steel major caters to.

At a New Year ceremony on Wednesday, Tata Steel managing director TV Narendran said, “We had some challenges, we had the incident (of the gas holder unit attached to the company’s LD-2 basic oxygen furnace blowing up on November 14); otherwise we continue to sell what we produce; we believe the markets are picking up a little bit in terms of prices.”



Narendran said that the deficit in production, caused by the partial three to four days’ production loss incurred due to the November 14 blast, would be made up in the fourth quarter. He added that the company had in recent months already resorted to hiking steel prices as per market conditions.



Talking about retail sales, the MD said, “We sell a lot into the retail market and that’s doing fine; for the long products retail continues to be a very important segment for us.”



Asked if it was going to raise prices from January 1, Narendran said, “International prices have gone up a little bit. China has increased prices by $10 in the last one week and the rupee is where it is. India is not importing much steel and exports are going up because of the rupee (being firm); so from different points of view things are looking up.”



Narendran said the company was “positive” about Q4 as normally the January-June period of the year is seen as the “best time of the year” as construction and other seasonal activities get started during this period.



The managing director said the company’s first phase 3 mtpa greenfield Kalinganagar project in Orissa was progressing as per schedule and was expected to go on stream by the “end of 2014-15”.

Source:- financialexpress.com

Independent manufacturers of jewellery won't be deemed as comparables for job workers for TP study

IT/ILT: For contract manufacturer of jewellery who is entitled for making charges, full fledged independent manufacturers could not be prima facie considered as comparables; further, availability of internal CUP method would outwit TNMM

Syria Relies On Costly Flour Imports As Local Output Cut Read More

Insecurity and power cuts have cut Syria's daily flour output capacity to 3,000 tonnes from 7,700 tonnes since its conflict began in 2011, forcing it into costly imports and causing low stockpiles in some provinces, the prime minister said."Importing flour places many burdens on the government. It's not easy to be a flour importer," Wael al-Halqi told parliament on Tuesday.



Syria has struggled in recent months to buy essential food staples such as flour, wheat, sugar and rice through tenders, in part due to U.S. and EU sanctions imposed on President Bashar al-Assad's government. Some deals have been struck outside the tender process using middlemen.



The sanctions do not cover food but those on banking, in addition to asset freezes, have made tenders difficult.



In December, however, Syria has tendered for food, including flour, using a credit line from Iran's export bank in what could be a test of a deal to ease some sanctions against Tehran.



Halqi said Syria was having to import most of its flour at a cost of $580 per tonne to meet daily domestic demand of about 6,110 tonnes.



He said many of Syria's 57 flour mills have gone out of operation and face problems "in securing electric power and oil derivatives to run off generators."



Other difficulties included "the unsafe conditions for transferring wheat to and from the mills and mill workers' difficulty in reaching their workplaces."



The beginning of winter has made Syria's plight even more urgent, prompting the United Nations to begin airlifting food this month into eastern parts of Syria from Iraq.



"Sometimes the difficulties in securing flour is what leads strategic reserves to reach low levels and vary from one province to another," Halqi said.



But he said violence and instability in certain parts of the country would not interrupt the production of bread, calling it "a red line for the Syrian government."



Source:- dailystar.com.lb

Paper Industry Concerned Over Looming Imports

The domestic paper industry, which is struggling to cope with high input costs and chronic shortage of pulp wood, will face a new challenge in 2014 — duty free import of paper from South-East Asian nations.India’s 2.5 per cent duty on paper imports has come down to zero on January 1 as per the terms of the free trade agreement it has with the Association of Southeast Asian Nations (ASEAN). The duty waiver by itself is not a concern, but in the context of the weakening competitiveness of paper mills, imports will aggravate the situation, say industry representatives.

Senior executives at large paper mills under the Indian Paper Manufacturers Association said the depreciation in the rupee has so far been a barrier against imports. But with the prevailing pulp wood shortage, large paper manufacturers have resorted to import costly pulp wood and the cost of production is on the rise. The industry has raised paper prices by 10-15 per cent in the current year. This is creating space for imports.

Pulp wood prices are up by 70-80 per cent in the last couple of years to about Rs 10,000 a tonne. Paper mills are importing pulp wood even if it is costlier by 30-40 per cent as domestic stocks are not available.

With imports of cream wove and maplitho paper set to pick up, the note book segment could be hit.

At about $780 a tonne cost and freight for stocks from South Korea, the landed cost is about Rs 48,000 a tonne against the domestic price of Rs 52,000.

Coated paper, copier paper and specialised products are also expected to flow in. India imports 8-9 lakh tonnes of these varieties annually. Import orders are on the increase, said a leading dealer.

Annual consumption of coated paper is estimated at about 6.4 lakh tonnes with 40 per cent – about 2.7 lakh tonnes – met through imports from China. The new sources could be Indonesia and South Korea in the coming years because of the cost advantage.

The two largest domestic suppliers of coated paper are Ballarpur Industries Ltd and JK Paper Ltd. Though coated paper prices in the domestic market are benchmarked against international prices, the threat of easier imports will reduce the flexibility for these mills, said an industry source.

The challenge for the imports will be setting up a distribution channel and competing against well-entrenched domestic players.

Branded copier paper demand is about 5.5 lakh tonnes and imports are restricted to some niche, high grammage varieties totalling about 5,000 tonnes. However, an importer pointed out that copier paper demand is growing in the double digits annually. Further growth in demand will have to come from imports.

Source:- thehindubusinessline.com

Govt Lowers Tariff Value On Imported Gold, Silver

The government has reduced import tariff value of gold and silver to $392 per ten grams and $638 per kg, respectively. Import tariff value is the base price at which customs duty is determined to prevent under-invoicing.



The tariff value on imported gold earlier stood at $398 per 10 grams, while on silver at $643 per kg.



The notification in this regard has been issued by the Central Board of Excise and Customs (CBEC), an official release said on Thursday.



However the tariff value on imported brass scrap has been increased to $3,940 per tonne from $3,930 per tonne.



The tariff value on imported poppy seeds has also been raised to $3,195 per tonne from $3,154 per tonne.



Gold in Singapore, which normally sets price trend on the domestic front, was trading at $1,224.11 an ounce and silver at $20 an ounce on Thursday.



India, the world's largest consumer of gold, imported 393.68 tonnes of the precious metal during the April-September period of this year, as per official data.The government has taken several steps to reduce gold imports, including hike in custom duties.

Source:-businesstoday.intoday.in

Focus On Grain Supply Expected To Drive Imports Of Non-Stable Foods

The country will likely import more food from overseas as it struggles to meet its target of producing virtually all the grain it consumes, analysts said. An annual top-level meeting on agriculture last week said that "moderate imports'' would form part of the national food security strategy.



The government has ordered that resources are allocated to ensure adequate supplies of cereals, implying the mainland will rely more on the global market for non-staple foods.



Ma Wenfeng , an analyst at Beijing Orient Agribusiness Consultants, said the mainland's food market was already fairly open to foreign imports, particularly the sale of soya beans which have been dominated by foreign companies. The new strategy suggested more imports of non-staple foods, he said.



The government issued a policy document on food security in 1996, saying the mainland should produce at least 95 per cent of its grain. The guideline has remained unchanged since.



Agriculture Minister Han Changfu said after last week's meeting the mainland would stick with this goal for the three staple foods - rice, wheat and corn. The country should be producing all of its rice and wheat, he said.



The National Bureau of Statistics said total grain output was nearly 602 million tonnes last year, up 2 per cent up over 2012. It was the tenth consecutive year of increased grain production, but imports have soared.



Customs data shows the mainland imported more than 72 million tonnes of grain in 2012, suggesting the nation was producing only 88 per cent of the grain it needed. An estimated 80 million tonnes of grain were imported last year, Ma said.



Some experts have complained that the food shortfalls have been made worse by the country's reluctance to embrace genetically modified food, which can increase farm productivity. Quarantine authorities refused 545,000 tonnes of US corn in November and last month because shipments contained an unapproved GMO variety.



Yuan Chongfa , vice-president of the China City Development Academy, said the mainland must ensure it has more than 120 million hectares of farmland to ensure food supplies, as the new leadership pushes forward a massive urbanisation drive.



"It's not bad to set the level a bit high because even if there is enough space to be self-sufficient, we have to consider our children and grandchildren's needs," he said.



Ding Li, a senior researcher in agriculture at the Anbound think tank in Beijing, said it was time to drop the production of some food, such as chickens and pigs, to grow more basic crops. Ding said the key to ensuring food security was to build a modern, safe and efficient agricultural industry.



Ma, the analyst at Beijing Orient, said it was also crucial to improve farm productivity.



Germany and France each produced an average of more than 7,000kg of wheat per hectare last year, while the mainland produced about 5,000kg, Ma said. The United States harvested nearly 10,500kg of rice per hectare last year, while the mainland produced about 6,700kg."Our plots of land are so small and scattered, so it's very hard to improve productivity," he said.

Source:- scmp.com

Mere recording of reasons not enough to reassess; nexus must between such reasons and alleged escape

IT : Where Assessing Officer had not made any addition in respect of escaped income for which he had recorded reasons, assessment order was liable to be cancelled

Assessees making payment of ST under reverse charge can utilize Cenvat Credit for such payment

Service Tax : In payment of service tax liability under reverse charge by recipient of taxable service, such assessees are entitled to make use of CENVAT Credit

Winding up on pretext of unilateral termination of contract was dismissed as petitioner was aware of

CL : Where petitioner was fully aware of termination of contract by respondent, winding up petition filed on basis of failure to pay outstanding liability due to unilateral termination of contract by respondent was to be dismissed

NBFCs to assign zero risk weightage, not to make provision for housing loans guaranteed by Credit Ri

NBFCs : Advances Guaranteed by Credit Risk Guarantee Fund Trust for Low Income Housing (CRGFTLIH) - Risk Weights and Provisioning

Applicability of Credit valuation adjustment risk capital charge on OTC derivate postponed until Apr

BANKING : BASEL III Capital Regulations - Capital Requirements for Credit Valuation Adjustment Risk on OTC Derivatives and for Banks' Exposures to Central Counterparties

RBI eases gold dore import norms; allows refineries to import 15% of their annual requirements in fi

FEMA/ILT : Import of Gold by Nominated Banks /Agencies/Entities

IRDA to collect service tax on services provided by it to Insurance Cos, TPAs, Brokers and surveyors

INSURANCE : Applicability of Service Tax on The Services Provided by IRDA

RBI mandates e-filing of quarterly statements by Securitization and reconstruction companies

NBFCs/SARFAESI : Submission of Online Quarterly Statements by Securitisation Companies/Reconstruction Companies Registered with The Reserve Bank of India Under Section 3(4) of The SARFAESI Act

Christian Society gets sec. 80G recognition as its activities were charitable in nature and benefite

IT : Where assessee-society was established and run by a minority christian community, but as aim and object of assessee-society was to train professionals in field of medical and health-care and also to provide medical facilities in their hospitals to all persons of any caste, creed, race, religion, etc., activities carried out by assessee society were charitable in nature and, consequently, assessee was entitled to registration under section 80G(5)

Tax Administration Reform Commission seeks inputs from stakeholders on certain issues of tax adminis

IT/ILT : Stakeholder Consultations by The Tax Administration Reform Commission (TARC)

No credit of inputs used in construction of building if work contractor was operating under composit

CENVAT : Where assessee had engaged works contract service provider for construction of rented building and such works contractor had opted for payment of service tax at composite rate on condition of non-availability of credit of duty paid on inputs used in construction, such input credit could not have been claimed by assessee

Employer's contribution to PF allowable in year of payment if paid after due date of return filing

IT: Where employer's and employees' contribution to provident fund was disallowed for failure to pay same before due date of filing of return, deduction for said contribution to be allowed in year of payment

Commissioner (Appeal) can't condone delay beyond maximum permissible period specified in law

Central Excise : In view of specific time-limits specified in Central Excise Act, 1944, Customs Act, 1962 and Finance Act, 1994, applicability of Limitation Act, 1963 is ruled out and Commissioner (Appeals) cannot, therefore, condone delay beyond maximum permissible period specified in said laws

Payment of service charges under composite agreement to run business operations attracts sec. 194C

IT : Where assessee-company made payments to its holding company on account of service charges, deputation charges and administrative expenses, since agreement executed between parties was a composite agreement, provisions of section 194C would be attracted to impugned payments

HC directs Maharashtra Govt. to consider suggestions relating to appointment of members of Sales Tax

CST & VAT : High Court directs State of Maharashtra to consider two suggestions relating to appointment of members of Sales Tax Tribunal viz. : (1) residential accommodation facility be provided to members; and (2) their retirement age be made equal to that of President of Tribunal viz. 65 years

A purchaser engaged in giving finishing touches to his house can't be regarded as builder of that ho

CST & VAT : A purchaser engaged in finishing of his prospective house cannot be regarded as engaged in 'construction work' of that house, as he did not carry out structural construction work

No penalty on meagre additions if assessee's explanation during search were accepted substantially

IT: Admission of substantial question of law by High Court in respect of addition itself could not be reason to delete penalty

ITAT considers 5% loss in gold and silver manufacturing as reasonable; allowed as business expenditu

IT: Loss of gold and silver due to wastage in process of manufacturing jewellery at 5 per cent to be considered as reasonable and same to be allowed

Mere CA's certificate doesn't prove absence of unjust enrichment unless it was supported by evidence

Central Excise : Costs Analysis Certificate by itself would not be sufficient to claim that incidence of duty had not been passed on to its customers; said certificate must be supported by materials/evidence and, if not all, a few invoices/records

Appellate authority can't direct AO to make assessment of third person whose appeal isn't pending be

IT : Appellate Authority cannot give directions to Assessing Officer in relation to a third person, whose appeal is not pending before him

Mere payment of redemption fine doesn’t wipe out importer’s right to challenge confiscation, penalty

Customs : Merely because importer has got goods released on payment of redemption fine, in no way, dwarfs right of importer to challenge not only confiscation but also imposition of redemption fine and final penalty

AO couldn't slap penalty without specifying docs assessee failed to maintain for international trans

IT/ILT : Where Assessing Officer passed a penalty order under section 271AA without specifying nature of documents assessee failed to maintain in terms of rule 10D of Income-tax Rules, 1962, order so passed being invalid, deserved to be quashed

Revenue to refund sum collected in violation of stay order; rectification plea without apparent mist

IT: Where Tribunal having found that revenue in violation of stay order recovered demand of tax from assessee directed revenue to refund recovered amount, in absence of any error pointed out by revenue in such order, rectification application of revenue to be dismissed

Availing of stock broker's services for selling investment in shares of other co's isn't an input se

CENVAT : Where assessee, a manufacturer of telecom equipments, had invested in another telecom company and, later, sold shares therein by availing stock-broker's services, service tax paid on such services could not be allowed as input service credit even prior to 1-4-2011 because such services did not relate to any business activity of assessee

BIFR protects co. retrospectively on its declaration as sick co. with retro effect, says HC

SICA : Where BIFR declared a company as sick company with retrospective effect, same was entitled to all protection under said Act more particularly under section 22, not from date of such declaration but from date on which such retrospective effect was given

Granting less than 24 hours to reply to show-cause notice is a flaw in decision making process; asse

IT : Justice must not only be done but appear to be done. Allowing assesses less than 24 hours to respond to show cause notice calling upon assessee to show cause as to why claim for deduction under section 80-IA shouldn't be disallowed particularly when there is no fear of the assessment getting time barred in the near future is a flaw in the decision making process and therefore amenable to judicial review. In such circumstances, it is incumbent upon the notice issuing authority to grant reaso

Invocation of extended period would be justified even if revenue had knowledge of suppression made b

Central Excise : Whenever there is non-levy or short-levy of duty with an intention to evade payment of duty, invocation of extended period of limitation would be justified; it cannot be said that since Revenue has knowledge of suppression, extended period of limitation cannot be legitimately invoked

AO's order couldn't be labelled as erroneous if it was concluded after thorough scrutiny of assessee

IT : Where assessment proceedings allowing deduction under section 80-IB(10) were concluded after thorough scrutiny of details furnished by assessee that too under section 147, read with section 143(3), Assessing Officer's order could not be termed as erroneous