Recovery proceedings kept in abeyance as Joint Commissioner didn't proceed with revision petition of

CST & VAT: Where against order of assessment, assessee filed revision petition alongwith stay petition and Revisional Authority did not proceed with matter and in mean time Assessing Authority directed assessee to pay arrears of tax due, recovery proceeding were kept in abeyance and Revisional Authority was directed to dispose of stay petition on merits

Income from sale of shares was taxable as capital gain when transactions of sale/purchase were spora

IT : Where assessee was not regularly purchasing and selling shares in a systematic manner and no borrowed fund had been used by him for such purpose, gain on purchase and sale of shares would be treated as short-term capital gain

Compounding fee paid to municipality on deviation from sanctioned plan was in nature of penalty, dis

IT : Amount paid by assessee to Municipal Corporation on account of compounding fee as compensation for condoning deviations from original sanctioned plan being in nature of penalty would not be allowable as deduction in view of Explanation to secton 37(1)

No rebate if goods weren't exported within 6 months after clearance from factory and time-limit wasn

Excise & Customs : Where goods were not exported within 6 months from date of export but were exported thereafter and assessee could not produce any extension of said time-limit, rebate claim under rule 18 could not be allowed

No oppression plea alleging violation of non-compete clause if assessee had arbitrational remedy to

CL: Where shareholders' agreement and Articles of Association of company clearly provided remedy for violation of non-compete clause by referring parties to arbitration, company-petition alleging oppression and mismanagement was to be dismissed

MAT Cos aren't liable to pay interest under sec. 234B and sec. 234C for non-payment of MAT in advanc

IT: No interest is chargeable under sections 234B and 234C for non-payment of minimum alternate tax in advance

Assembling of computers and servers would be deemed as manufacturing activity for purpose of sec. 80

IT : Where assessee was engaged in business of assembling of computer and servers, it was to be regarded as process of 'manufacturing' and, thus, assessee's claim for deduction under section 80-IB was to be allowed

In case of common partner in two firms, bank account of one firm couldn't be freezed to recover dues

CST & VAT : Presence of common partner in two firms, cannot be a ground to freeze bank account of one firm for recovering dues of another

Tax recovery couldn’t be initiated until matter is heard and outcome of stay application is decided

IT : ITO being a quasi judicial authority should not act as a mere tax gatherer but also as an authority vested with power of mitigating hardships to assessee and should at least delay recovery till outcome of stay application

No denial of registration to trust merely due to spending of small amount on charitable activities

IT : Registration under section 12AA could not be declined on ground that trust had spent low quantum towards charitable activity

No writ lies to High Court for deciding issue of non-compliance of DRT's order by respondent-bank

RDDBFI ACT: Non-compliance of DRT's order by one of party for discovery and production of documents in an adjudication pending before it is a matter to be decided on merit by DRT and DRAT; writ jurisdiction cannot be enforced

No withholding tax on commission paid to NR agent for rendering of services outside India

IT/ILT : Where non-resident agents had acted as selling agents of an Indian company outside India and they did not have any business connection in India, commission earned by them for services rendered by them outside India could not be considered as income chargeable to tax in India

Amendment in Cenvat Rule 6(6)(i) to clarify that term SEZ 'unit' shall include SEZ 'developers' is r

Cenvat credit : In rule 6(6)(i) of Cenvat Credit Rules, reference to SEZ 'unit' was there but word 'Developer' was conspicuously missing, which was introduced vide Notification dated 31-12-2008 to clarify doubt; hence, said amendment was clarificatory and retrospective

Rising Steel Imports Hurt Pm Narendra Modi's 'Make In India' Push

The country's steel consumption is expected to grow at its fastest pace in five years in 2015 on Prime Minister Narendra Modi's infrastructure push, but a scarcity of raw materials means it will be at the expense of another key goal - curbing imports.

In his triumphant election campaign, PM Modi criticised the previous government for exporting iron ore but importing steel. However, the Prime Minister's first five months have coincided with a surge in imports of both, denting his high-decibel drive to make the country an export powerhouse.

The nation's steel imports from China, which is the world's biggest producer of the alloy, doubled in the first half of the current financial year, that is between April-September, from a year ago though the country has enough capacity to meet its demand.

While the country's consumption is expected to rise, China will continue to see a downtrend, likely leading to a flood of cheap steel from China just as Modi pushes ahead with the flagship 'Make in India' initiative to boost domestic industry.

Charged by the strongest electoral mandate in three decades, the prime minister has staked his reputation on making the country an export hub, launching his pet campaign with much fanfare in September with a lion as its logo.

Soaring steel imports, however, underscore the challenges Modi faces in realising his dream. Steelmakers, such as JSW, are clamouring for higher import tariffs.

"The 'Make in India' slogan has to be true for steel also," said Ravinder Bhan, deputy general manager of marketing at state-run Steel Authority of India (SAIL). "Let steel firms get iron ore and other raw materials. But that's not happening," he added.

The country has become a major importer of iron ore and coal despite having big reserves of both at home. Once a top exporter, the domestic steel industry is now bringing in shiploads of iron ore due to court action against illegal mining that has stifled supply, while coal behemoth Coal India (CIL) is struggling to boost production.

The shortages mean that the domestic steel industry is running at 80 per cent of capacity. But the World Steel Association expects the prime minister's pro-business plans - building 100 new 'smart' cities, creating new logistic hubs and residential townships - to spur steel demand that has been weak in recent years.

World Steel expects domestic demand to rise 3.4 per cent to 76.2 million tonnes in 2014, after growth of 1.8 per cent in 2013. Structural reforms and improving confidence will support a further 6 per cent growth in 2015, it said.

Home-grown steelmakers such as JSW, Tata Steel and Jindal Steel and Power (JSPL), however, run the risk of being priced out by their Chinese competitors.

"The global market is such that the only thing that you can do is take some protective action to save the (domestic) industry," said AS Firoz, chief economist at a Steel Ministry unit. "Otherwise you can't decide what the global prices will be or at what price China will export steel."

A Steel Ministry spokesman said he had no immediate comment on whether authorities would consider raising tariffs, although a government official, who spoke on condition of anonymity, said the issue was being looked into.

China, the world's largest steel producer, rolls more steel in a month than the country, which is the fourth largest producer, manages in nine months. However, a slowdown in China means it is set to end with a surplus of about 100 million tonnes a year.

A tonne of reinforcement steel produced in the country for use in buildings can cost up to Rs 15,000 ($244) more than that from China, according to Firoz.

Shipments into the country jumped 33 per cent to 4.19 million tonnes in April-September period of the current financial year from a year ago, with imports from China leaping 108 per cent to 1.34 million tonnes. Total steel imports in the financial year ending March 31, 2015 could nearly double to 9 million tonnes, JSW predicts.

"Through 'Make in India', Modi is saying that India should be the hub for the rest of the world and of course to meet our full demand," said NC Mathur, president of the Indian Stainless Steel Development Association.

"Instead something made outside India is coming into the country. That's a big threat. It's a week after week, month after month survival issue.

Source:- businesstoday.intoday.in

Pak Imports From India Cross $2Bn First Time

Despite complexes diplomatic ties between the two bordering countries, for the first time Pakistan’s annual imports from India crossed $2 billion level in the last financial year, 2013-14.

In FY 2013-14 Pakistan had imported $2.04 billion worth different items from the neighbouring country that marked the year’s highest imports from India since the partition.

Pakistan’s imports from India show a steady growth during the past three years. For example, in 2011-12 Pakistan imported goods worth 1.5 billion dollars from India.

In 2012-13 the Indian exports to Pakistan further increased to 1.81 billion dollars. Finally in 2013-14 Pakistan’s imports from India crossed the barrier of $2 billion and mounted to 2.04 billion dollars.

Pakistan’s exports to India, however, did not show any plausible growth and remained less than half a billion dollars. In 2011-12 Pakistan exported 338 million dollars goods to India, 327 million dollars goods were sold to India in 2012-13 and a slight increase in Pakistan’s exports to India was seen in 2013-14, when exports reached 407 million dollars, still far less than imports from the neighbouring country.

The foreign trade data of the Pakistan Bureau of Statistics clearly shows that the key beneficiary of the two countries trade is India and Pakistan is sustaining more than 1.5 billion dollars deficit in trade with bordering country.

In last three years, from 2011-12 to 2013-14, Pakistan had sustained 4.285 billion dollars in trade with India. During this period Pakistan imported 5.357 billion dollars goods from India, and exported there only 1.072 billion dollars goods.

Source:- thenewstribe.com

Norway Pushes Seafood Exports To India

Norway is looking to India as new market for seafood exports after the Russian ban imposed since Aug. 7, reports The Hindu.Norway, which exports seafood to 140 countries, is now looking at potential markets such as India, Indonesia, Vietnam and countries in Central and Eastern Europe, officials said.

“We see a huge potential in India and foresee similar positive changes in demand for Norwegian Salmon that we have seen in countries like Russia and China. These are countries where Salmon was not well known ten to 15 years ago but is now growing rapidly,” said Norwegian Seafood Council director Christian Chramer.

“India has a large population that prefers to eat healthier food, and is aware of the benefits of Omega 3 in seafood. At present, people are having it in five-star hotels and may soon have salmon at home or at restaurants,” Chramer said.

“At this stage, we are facilitating contact between Norwegian exporters and the Indian seafood importers, trade and the retail sector. We are still at an early stage, and are building up our competence and establishing contacts with relevant partners in India step by step,” he said.

Norway has been exporting seafood to India for over ten years but in limited volume.

Important milestones needed to be reached, the most important being establishment of a Free Trade Agreement between Norway and India before setting any export volumes’ target, Chramer said.

Source:-undercurrentnews.com

Indian Coal Import Down By 9Pct In October - Mjunction

According to provisional data from online trader mjunction, India's coal imports fell 9% to 15.33 million tonnes in October from a month ago as cyclone Hudhud exacerbated congestion at some ports.

Shipments into the world's third largest coal importer are, however, expected to jump to as much as 17 million tonnes this month due to lower international prices and as fuel-starved power companies order more.

61 of India's 103 power plants had enough coal for less than a week as of last Sunday because of lower supplies from state giant CIL. This has forced even financially stressed power firms to place import orders.

Mr Viresh Oberoi of chief executive and MD of mjunction said that "We understand that the material against deals struck in October will arrive in November."

Mr Oberoi said that "We also anticipate that some of the vessels, the loading of which might have been delayed in October due to Hudhud, will arrive in November."

India's October coal imports were slightly higher than the 15.16 million tonnes brought in a year ago but was much lower than the 16.92 million imported in September.

Operations at four eastern Indian ports were affected by cyclone Hudhud, which slammed into the coast of Andhra Pradesh and Odisha states last month killing at least 41 people and leaving hundreds homeless.Some ports were congested even before the cyclone hit.

Mjunction said that out of the total coal imported in October, shipments of power-generating thermal coal stood at 12.7 million tonnes and steelmaking coking coal at 1.92 million.

Source:- coal.steelguru.com

No sec. 192 TDS on sums paid to consultant-doctors even if agreement prohibits them from taking othe

IT : Payment made to consultant doctors who were engaged through an agreement, could not be treated as salary liable to TDS under section 192

HC reduced penalty for delayed deposit of TDS as delay occurred when AO denied to accept outstation

CST & VAT : Where assessee deducted tax at source and prepared drafts equivalent to amount of tax deducted in name of Assessing Officer, but banker of Assessing Officer refused to accept drafts as they were outstation drafts and thereupon assessee deposited deducted amount belatedly, penalty imposed for delayed payment was justfied but same was liable to be reduced

Sec. 149 of Customs Act applies to simple amendment in shipping bills, not to conversion from one sc

Excise & Customs : Section 149 of Customs Act, 1962 applies only to simple amendment in shipping bills; it does not apply to conversion of shipping bills from one export promotion Scheme to another

No obligation to listen to financier of vehicle during inspection of goods in transit under sec. 47

CST & VAT : In proceedings under section 47(2) of Kerala VAT Act, registered owner of vehicle or owner of consignment alone are liable to be heard and not financier of vehicle

Sec. 54B relief rightly denied as land wasn't used for agricultural purposes in preceding two years

IT: Where land was not used by assessee or his parent for agricultural purposes for a period of two years immediately preceding date of transfer, exemption under section 54B was rightly disallowed

Short deduction of tax due to application of wrong provision won't lead to sec. 40(a)(ia) disallowan

IT : Short deduction of tax cannot be reason for disallowance under section 40(a)(ia)

Period of stay for payment of tax or filing of return to be excluded for computing time-limit for is

Service Tax : Interim stay on payment of tax and filing of returns by assessee does not amount to stay on service of notice/proceedings by Department; therefore, said period of stay cannot be excluded in computing time-limit for issuance of notice under section 73 of Finance Act, 1994

HC ordered liquidating-co. to pay simple interest to creditor as there was no agreement to show fixe

CL: Where appellant creditor had made inter-corporate deposit with company-in-liquidation, in absence of agreement to show fixed rate of interest company was directed to pay simple interest to creditor

Dept. couldn't deny exemption outright to goods made from old rails on pretext that no duty were pai

Excise & Customs : Where assessee had claimed exemption in respect of 'MS round bars' manufactured out of old rails purchased from Railway through auction as raw material, said exemption could not be denied on assumption that "this is well known that old rails are not duty paid"; department must prove said fact

No denial of benefit of Amnesty Scheme on non-filing of evidence of making application if tax/penalt

CST & VAT: Where tax and penalty was paid by cheques before cut off date of Kara Samadhana Scheme, benefit of scheme can't be denied merely for not producing acknowledgement of having made application

Exp. incurred by film distributor on abandoned film was in nature of revenue exp., says ITAT

IT : Expenditure incurred on abandoned film would be allowable as revenue expenditure

Appeal couldn't be considered as time-barred without first determining the date of delivery of order

Service Tax : In order to attract deeming provision regarding service of order under Section 37C(2) of Central Excise Act, date of tendering/delivery of order sent by post has to be ascertained; failing which appeal cannot be dismissed as time-barred

CIT(A) had to continue adjudication of TP adjustment not related with MAP proceeding initiated with

IT/ILT: Where assessee had withdrawn TP adjustment relating to international transactions with V, USA, taking recourse to MAP under article 27 of Indo US DTAA, whereas balance TP adjustment relating to international transactions with other entities was not withdrawn, Commissioner(Appeals) was to be directed to re-adjudicate TP adjustment on transactions not covered under MAP

HC admitted winding-up of Co. but deferred appointment of liquidator to enable settlement proposal

CL: Where respondent was unable to pay its admitted dues, but company was in process of being revived, winding up petition against it was to be admitted but publication of citation was to be deferred to enable settlement proposals

Appeal isn't maintainable before HC if one of the issues decided by Tribunal pertain to valuation of

Service Tax : Where one of issues decided by Tribunal related to taxability of services and assessee had appealed to Supreme Court and said appeal was pending, no appeal could be filed by Department relating to period of limitation/penalty aspect before High Court

Sum paid to NR without deduction of tax won't invite sec. 40(a)(i) disallowance if such sum was capi

IT : Where assessee had not claimed payment made to non-resident for providing engineering site services as expenditure but capitalised same and claimed only depreciation thereon, no disallowance could be made under section 40(a)(i)

Pre-deposit couldn't be ordered if department had taken contrary views on same issue for different a

Excise & Customs : In a matter pertaining to waiver of pre-deposit, assessee's submission that 'in similar matter pertaining to another assessee, department had taken a contrary view' is a relevant factor for consideration by Tribunal

'Agarbathi mix' is excisable if its marketability is established, its actual sales is immaterial; CB

EXCISE & CUSTOMS LAWS : Clarification on Excisability of Odoriferous Compound/Agarbathi Mix Arising During Course of Manufacture of Agarbathi

HC directed assessee to file its objections against VAT addition before Dy. Commissioner

CST & VAT : Where Deputy Commissioner issued on assessee notices under section 27 of Tamil Nadu VAT Act asking for production of documents and for non-production of documents by assessee he confirmed proposal to tax and passed revised orders of assessment, assessee was directed to file its objections before Deputy Commissioner for consideration on merits

No reassessment if same issue was decided against assessee in later years unless AO had docs showing

IT : Merely because section 10B deduction was denied in subsequent assessment year, assessment could not be reopened where no fresh tangible material indicating escaped income was available

Interest paid on loan to acquire shares couldn't treated as its cost of acquisition if interest wasn

IT : Where interest expenditure on loan taken for making investment in shares was not capitalized, said interest was not to be deductible against short-term capital gain on shares

Tribunal can extend time-limit to make pre-deposit or restore appeal for delayed compliance with pre

Service Tax : Tribunal may : (i) extend time-limit to make pre-deposit and/or (ii) restore appeal after delayed compliance with pre-deposit order, and source of said power can easily be traced to rule 41 of CESTAT (Procedure Rules)

HC ordered advertisement of winding-up plea in newspaper as Co. didn’t initiate settlement proposal

CL : Where respondent company did not take initiative to have talks or make settlement proposals to petitioner despite winding up order, admission of winding up petition was to be advertised in newspapers

Assessee couldn't plead that its declaration for Compounded Scheme was invalid after it had opted fo

Excise & Customs : Where assessee had claimed that it has opted for compounded levy scheme under rule 96ZO(3), by making a declaration under rule 96ZO(4), assessee cannot later plead that there was no declaration in terms of rule 96ZO(4); hence, demand of duty by Department based on rule 96ZO(3) was valid

VAT penalty levied for carrying goods without requisite docs could not be reduced by department: HC

CST & VAT: Provisions contained in section 53(12)(a)(ii) of Karnataka VAT Act are mandatory in nature

No sec. 194C TDS on sums paid to contractor for job-work if liability for execution of contract was

IT : Where assessee engaged in carrying out work of roughing and finishing of raw material on CNC machines on job work basis, engaged various labour contractors to do a part of said job work, in view of fact that assessee himself was responsible for executing contract and labour contractors had no privacy of contract with customer, payments made to said labour contractors were not in nature of sub-contracts and, hence, there was no obligation to deduct TDS on those payments

Interest on loan provided to AE without any security benchmarked at LIBOR plus rate for TP adjustmen

IT/ILT: Transaction of loan given by Indian company to its AE is an international transaction and subjected to ALP as per transfer pricing provisions, thus loan advanced by assessee without any security or guarantee it had to be benchmarked by taking Arm's Length interest rate as LIBOR plus

Though huge pendency of appeals is assigned to benches of CESTAT, yet it can't extend stay indefinit

Service Tax : Incapacity of Tribunal to dispose of appeals (where an order of stay is granted) within a period of 180 days or 365 days is not attributable to any protractive or dilatory conduct of assessees; hence, in such cases, stay may be extended beyond 365 days

CLB rejected Co's plea of issuing shares at more than 10% discount as it failed to repay its secured

CL: Where company had made no efforts to issue right shares at par and had not paid off its secured creditors, petition seeking permission to issue shares at 85 per cent discount was to be dismissed

Monetary limit prevalent when appeal came up before HC was to be considered to decide maintainabilit

Excise & Customs : Monetary limit for filing appeal, as prevalent on date when appeal comes up for consideration of High Court, is applicable; hence, where appeal filed on 1-4-2011 came up for consideration of High Court on 11-12-2011, monetary limit for filing appeal as revised vide Circular dated 17-8-2011 was applicable thereto

Sum received under VRS was exempt as it didn't exceed Rs. five lakhs and VRS was in accordance with

IT: Where voluntary retirement scheme launched by 'K' Ltd. satisfied all requirements of Rule 2BA of 1962 Rules, assessee being employee of 'K' Ltd., was entitled to claim exemption of Rs. Five lakh under section 10(10C) towards retirement benefits received under said scheme

Though huge pendency of appeals is assigned to benches of CESTAT, yet it can't extend stay indefinit

Service Tax : Though huge pendency of appeals and workload assigned to Benches of CESTAT cannot be denied, but, entire object and purpose of insertion of section 35C(2A) and provisos thereto will stand defeated, if waiver of pre-deposit is granted indefinitely; hence, Tribunal cannot extend stay indefinitely

No disallowance for cash payment on insistence of seller as payment proof proved genuineness of tran

IT : Where assessee made payment in cash on insistence of seller and there was no doubt about genuineness of payment, no disallowance could be made under section 40A(3)

Insecticides meant for domestic households fall under Entry No. 115 of Schedule II(B) of Tripura VAT

CST & VAT : Where assessee was dealing in insecticides, which were meant for spraying within domestic household to repel/kill mosquitoes, flies, cockroaches, etc., spray items in question would fall under Entry No. 115 of Schedule II(B) of Tripura VAT Act

Penalty for TDS default deleted as order was passed after 6 months of initiation of action imposing

IT : Penalty order passed under section 271C beyond period of 6 months from date of reference for imposition of penalty would be barred by limitation and liable to be set aside

HC couldn't interfere with Tribunal order denying condonation of delay even if it found a different

Excise & Customs : Where Tribunal had denied condonation of delay on facts after considering all relevant aspects, High Court cannot interfere only because High Court takes a different view

HC upholds order of pre-deposit as it was ordered after considering previous orders on similar issue

Excise & Customs : Pre-deposit ordered after considering : (a) previous orders on similar issue for earlier periods in favour of revenue and (b) offer made by assessee, cannot be regarded as erroneous

Common shareholding isn’t relevant to tax deemed dividend when recipient-co. isn’t a shareholder in

IT : Loans or advances received by assessee-company from other company could not be treated as deemed dividend when assessee was not a shareholder of that company

Sale of pharma-preparation was taxable at 12% as assessee was representing it as soap to customers

CST & VAT : Assessee selling pharmaceutical product manufactured by it representing to its prospective buyer that it was only a soap, was liable to pay tax at rate of 12 per cent

No sec. 11 relief to trust constituted for development of cities as it had turned into a huge profit

IT: Where predominant object of assessee-trust was profit making, exemption under section 11 was rightly denied

CBDT revises territorial jurisdiction and powers/functions of CITs (TDS)

IT : Section 120(1) and (2) of The Income-Tax Act, 1961 - Income-Tax Authorities - Jurisdiction of - Supersession of Notification No. SO 1386(E), Dated 10-8-2007 and Notification No. SO 2752(E), DATED 22-10-2014

Comparables with functional differences and related party transactions couldn't be chosen for TP stu

IT/ILT : Where TPO made addition to assessee's ALP in respect of software development services rendered to AE on basis of arithmetic mean margin of comparables selected under TNMM, since some of comparables selected by TPO was inappropriate on account of functional difference, export turnover and related party transactions etc., impugned addition was to be set aside

Prior to 27-2-2010, services provided by foreign subsidiary to foreign clients of Indian-Co. not dee

Service Tax : For period prior to 27-2-2010, services provided outside India by a foreign subsidiary of Indian holding company to foreign clients of Indian holding company do not amount to export of services by Indian company, as services are not "provided from India" as per Rule 3(2)(a) of Export of Services Rules, 2005

SC: Appellate board had to condone delay in filing appeal as it was filed before 90 days of service

FERA : Where appeal against adjudication order was filed before 90 days and not later than 90 days, Appellate Board was empowered to condone delay

Tribunal had powers to execute its own order if order passed by it wasn't carried out by assessing a

CST & VAT: Where Tribunal passed order in favour of assessee, but same was not being carried out, Tribunal had jurisdiction to execute its own order

ITAT determined income under sec. 44AD as receipts in books were different from those shown in Form

IT : Where there was difference in civil contract receipts shown by assessee in books of account and by contractee in form 26AS, net profit rate at rate of 8 per cent was to be applied to determine income embedded in said receipts

SEBI norms and clause 35 of listing agreement don't require promoters to make disclosure of encumber

SEBI : Neither any regulation framed by SEBI nor clause 35 of the Listing Agreement cast an obligation on promoter/promoter group to make disclosures of shares encumbered to listed company, and in absence of such disclosure made by promoter/promoter group, SEBI would not be justified in directing listed company to disclose to Stock Exchanges details of shares which are 'otherwise encumbered' by promoter/promoter group

CIT had to consider stay application if Tribunal had ordered for payment of tax in instalments

IT : Where petitioner, after filing an appeal and moving a stay petition and suffering an order for payment of demand in instalments, succeeded before Tribunal, Commissioner had to consider stay application

Notification granting revisional power wasn’t valid if it was issued before Haryana VAT Act came int

CST & VAT : While section 34(2) of Haryana Vat Act confers revisional power of Commissioner on Deputy Commissioner by issuing notification but notification referred was issued prior to Act came to be enforced, said notification was not a valid one

Sec. 80-IA: No allocation of fee from job-work amongst all units of assessee if service was provided

IT : Where out of three units only one unit had provided technical know-how service to client, technical know-how fee could not be apportioned among three units for purpose of granting deduction under section 80-IA

TPO couldn’t adopt entity level profit margin if enough material was produced to arrive at segmental

IT/ILT : TPO cannot adopt entity level profit margin where assessee has produced relevant material on record in order to arrive at segmental profitability relating to transactions entered into with AE

Urban Banks can only nominate senior managerial person as director to ensure compliance with Money L

BANKING/MONEY LAUNDERING : Designated Director – Amendment to Section 13(2) of Prevention of Money Laundering Act

RBI directs banks to get confirmation from drawer on phone call in respect of suspicious or high val

BANKING : Cheque Related Fraud Cases - Preventive Measures

No sec. 80-I relief on duty drawback as it doesn't form part of net profits of industrial undertakin

IT: Tribunal rightly directed to work out value of finished goods lying at port on basis of average cost, as this method of valuation of closing stock of raw material had been accepted by assessee

Open remand order would not create binding precedent if no positive view was taken in it, rules High

Central Excise : When matter was remanded back in entirety for reconsideration by Tribunal and there was no positive view taken in remand order, remand order cannot be regarded as binding precedent

Secured creditor couldn’t be asked to refund the amount paid to it for meeting tax liability of liqu

CL: Where secured creditor was paid an amount from sale proceeds towards its dues, it could not be asked to refund that amount towards tax liability of company

Cognizance order passed under FUTP norms after 4 yrs of offence but within 1 yr of investigation was

SEBI : Cognizance order passed after four years of commencement of offence but within one year of submission of investigation report and complaint by SEBI would not be barred by limitation

Law requires appellant to submit certified copies of order, submissions of its zerox copies isn't su

Excise & Customs : Where law requires appellate/other authority to supply a certified copy of order passed by it, time-limit would start running only after a certified copy is supplied; mere supply of photocopy by other party is not sufficient

Even 'Solatium' awarded by court would form part of enhanced compensation to avail benefit of sec. 5

IT: Where assessee was awarded by enhanced compensation, benefit under section 54H would be extended to entire amount of compensation as enhanced by Court as compensation connotes not only market value but also statutory benefits provided under Act

Failure to issue notice in time couldn't be cured by sec. 292BB

IT : Failure to issue a notice under section 143(2) within prescribed period cannot be cured by taking recourse to section 292BB

No sec. 158BD block assessment if AO failed to satisfy that material unearthed in search belonged to

IT : Where AO in case of searched person did not record objective satisfaction that incriminating material found in search belonged to assessee, block assessment order passed by jurisdictional AO in case of assessee was to be set aside

Appeal dismissed for default of Tribunal was restored to after imposing cost on the department

Excise & Customs : Even if assessee may not have pursued appeal before Tribunal with as much care as it should have been; however, by awarding costs payable to department, appeal may be restored to give assessee an opportunity to pursue on merits

Foreign decree against guarantor doesn't bar filing of winding up plea in Indian High Court

CL : Even where there is foreign decree against guarantor, winding up petition can still be admitted in jurisdictional High Court in India

CBDT notifies new hierarchy of income-tax authorities; Principal CCIT to be superior to CCIT

IT/ILT : Section 118 of The Income-Tax Act, 1961 - Income-Tax Authorities - Control of - Notified Subordinate Officer – Amendment in Notification No. SO 359, DATED 30-3-1988

CBDT notifies hierarchy of Transfer Pricing Officers

IT/ILT : Section 120(1) and (2) of The Income-Tax Act, 1961 - Income-Tax Authorities - Jurisdiction of – Transfer Pricing Officers – Supersession of Notification No. SO 279(E), DATED 12-3-2003

CBDT revises class of persons and territorial jurisdiction of Transfer Pricing Officers

IT/ILT : Section 120(1) and (2) of The Income-Tax Act, 1961 - Income-Tax Authorities - Jurisdiction of - Supersession of Notification No. SO 994(E), DATED 9-9-2001

CBDT notifies territorial jurisdiction of CITs for purpose of transfer pricing study

IT/ILT : Section 120(1) and (2) of The Income-Tax Act, 1961 - Income-Tax Authorities - Jurisdiction of – Transfer Pricing Officers, Delhi

CBDT specifies class of persons on whom CITs can exercise powers and functions relating to TDS

IT/ILT : Section 120(1) and (2) of The Income-Tax Act, 1961 - Income-Tax Authorities - Jurisdiction of - Supersession of Notification No. SO 881(E), DATED 14-9-2001

Ruling of SC applies to all cases irrespective of their stage of pendency unless prospective effect

Excise & Customs : Supreme Court decision applies to all cases, irrespective of stage of pendency thereof, unless Supreme Court expressly indicates that decision would have prospective effect

Four year's time-limit provided for rectification is also applicable to recall exparte order of Trib

IT : Time-limit of four years provided for rectification of Tribunal's order is also applicable for recalling an ex-parte order of Tribunal

FinMin raises monthly petrol entitlement of presiding officers and members of SAT

SEBI/INDIAN ACTS & RULES : Securities Appellate Tribunal (Salaries, Allowances and Other Terms and Conditions of Presiding Officer and Other Members) Amendment Rules, 2014 – Substitution of Rule 8

'International Union for Conservation of Nature and Natural Resources' can't be held as a foreign so

FOREIGN CONTRIBUTION/ILT : Section 2(1)(j)(ii) of The Foreign Contribution (Regulation) Act, 2010 – Foreign Source - Notified Interntional Agency

HC quashes allegation of suppressed purchases as all purchases were duly accounted for in books

CST & VAT : Where all purchase of goods were accounted in books in support of transported goods, Tribunal's order that there was no suppression of purchase cannot be faulted with

No revision by CIT on issue relating to apportionment of exp. if AO had duly examined such claim

IT: Where Assessing Officer had specifically examined issue relating to apportionment of common expenditure and was fully satisfied with apportionment made, Commissioner could not have invoked provision under section 263 merely on assumption that order passed by Assessing Officer could possibly have been erroneous

CESTAT directs DR/AR of benches to list appeals before Court if evidence of mandatory pre-deposit is

EXCISE & CUSTOMS LAWS : Section 35F of The Central Excise Act, 1944 – Deposit, Pending Appeal of Duty Demanded or Penalty Levied – Mandatory Deposit of 7.5/10 Per Cent, as The Case May be, Has to be Made for Filing Appeal Before Tribunal – Clarification Thereon

AO can’t disregard ITAT’s stay order to collect pending tax on basis of consent letter from assessee

IT/ILT: If Tribunal grants stay of recovery of demand, the Assessing Officer cannot collect the pending amount from assessee even after obtaining a consent letter from him.

HC stayed pre-deposit order of Tribunal on clandestine removal as Courts had divergent opinions on i

Excise & Customs : Where, despite divergent views in various decisions, Tribunal had ordered 25 per cent pre-deposit of duty on clandestine removal based on electricity consumption, High Court stayed said pre-deposit direction pending further others

Hospitals couldn't be deemed to have object of general public utility; eligible for sec. 12AA regist

IT: Where assessee, charitable institution was running a hospital, proviso to section 2(15) would not be applicable

Registrars to keep separate registers for cases in which stay was granted and where no stay was gran

Excise & Customs Laws : Section 35C of The Central Excise Act, 1944 - Orders of Appellate Tribunal - Maintenance of Registers of Cases Where Stay Granted/Not Granted

Sec. 69A couldn't be invoked on a presumption that unaccounted money was bound to flow in a real est

IT : Huge cash in hands of vendors and corresponding withdrawals by purchasing of land by assessee to be verified for making addition in hands of assessee

No tax on packing material as it was used for sale of salt which was not liable to VAT

CST & VAT: Where assessee purchased plastic bags against declaration form without payment of tax and packed salt in such bags for sale, since salt was not subjected to any sales tax, plastic bags in which salt was being packed were not equally subjected to levy of tax

Capital gain tax couldn't be treated as liquidation exp. to get priority over dues of workmen and se

CL: Capital gains payable by company on sale of assets by court not liquidation expenses, cannot be paid in priority over dues of workmen and secured creditors

Time-limit prescribed under sec. 11A of Excise Act would also be applicable to recovery of interest

Excise & Customs : Time-limit for recovery of principal (duty) would also apply to recovery of interest; therefore, time-limit of section 11A of Central Excise Act, would apply for recovery of interest under section 11AA