Govt. notifies search and seizure norms in respect of Pension Fund

CL : Others/Indian Acts & Rules : Pension Fund Regulatory and Development Authority (Procedure for Search and Seizure by Authorised Officer) Rules, 2014

SEBI establishes its local office at Shimla

SEBI : Establishment of Local Office of SEBI at Shimla

RBI asks banks to carry out due diligence before making payment of unclaimed deposits to customers

BANKING : Section 26A of Banking Regulation Act, 1949- Depositor Education and Awareness Fund Scheme, 2014 – Due Diligence of Customers

RBI updates banks on inclusion of name of 'Doha Bank Qsc' in second Schedule to the RBI Act

BANKING : Inclusion in the Second Schedule to the Reserve Bank of India Act, 1934 – Doha Bank QSC

SEBI revises norms for issuance of Offshore Derivative Instruments on lines of FPI norms

SEBI : Conditions for Issuance of Offshore Derivative Instruments under SEBI (Foreign Portfolio Investor) Regulations, 2014

Indian Textile Sector Has Potential To Cross $500 Bn By 2025, Says Report

The country’s textile industry, which is currently estimated at USD 108 billion, has potential to cross USD 500-billion mark by 2025 if the sector gets adequate support from the government, says a report.

“If the Indian textile industry takes the right steps and gets adequate policy support from the Government, it could cross USD 500 billion by 2025 from its present size of USD 108 billion.

This will also catalyse another 35 million jobs and USD 200 billion of investments,” according to a study report by leading textile and polyester consulting firms Wazir Advisors and PCI Xylenes & Polyesters. The USD 500 billion market figure consists of domestic sales of USD 315 billion and exports of USD 185 billion.

The current industry size comprises domestic market of USD 68 billion and exports of USD 40 billion, Wazir Advisors Joint Managing Director Prashant Agarwal told reporters here today.

“We have belief that India is a goldmine for growth of textiles and apparel value chain, whose potential is yet to be fully tapped,” he said.

Agarwal said the government needs to give more support to the industry with specific focus on manmade fibre based textile value chain.

Immediate GST implementation to remove differential tax treatment to manmade fibres, creation of mega textile parks, single window system for FDIs, labour law reforms, extension of loan period in case of TUFS (Technology Upgradation Fund Scheme) and R&D promotion are some of the policy measures needed to boost the industry, he said.

Implementation of these suggestions will help to attract investment, technology upgradation, innovation and healthy growth of the industry, Agarwal said.

With 5.2 per cent share of global trade, the Indian textile industry ranks second in the world, but far behind China. This is likely to change, with China’s share in global textile trade expected to go down by 5 per cent which will help India to push up its exports to USD 185 billion, the report said.

Indian textile industry needs to effect a major shift in its fibre mix, which is presently tilted towards cotton (55 per cent), while the fibre consumption of the world is tilted towards polyester fibre (50 per cent), it maintained.

Source:niticentral.com

'Dharmarth' receipts collected by a Logistic Co. and routed to a charitable trust couldn't be taxed

IT : Where assessee company having collected certain amount as 'dharmarth', routed it to a charitable trust, amount so collected could not be brought to tax as income of assessee

Welding electrodes used in repair or maintenance of plant and machinery are eligible for credit

Cenvat Credit : Repair and maintenance of plant and machinery, though by itself not a manufacturing activity, has to be treated as an activity in relation to manufacture and inputs/welding electrodes used therein are goods used in relation to manufacture and are eligible for credit

Lamborghini Sees High Import Duty Affecting Sales In India

Italian super-luxury sports car maker Lamborghini today said high import duty ranging up to 167% is a major deterrent for selling its cars in India. As a result, the company expects its sales to be lower than the last year's level in India this year.

"We sold 22 cars in India last year, a growth of 29% over the sales of 2012. We do not expect better sales this year due to very high amount of import duty in the country, which is as high as 167%," Stephan Winkelmann, President and CEO, Automobili Lamborghini S.p.A said.

He said the company would be comfortable if the import duty is capped at 2011 levels, when it was 60%. "We are too small player in India to ask the government to bring down the import duty. It is up to the industry to seek duty concessions collectively," he said.

Another reason for lower sales in India this year, according to him is due to late launch of new model Huracan. It expects to improve its sales in the country next year.

The Volkswagen-owned brand opened its third dealership in India at Bengaluru today. It already has dealerships in Mumbai and Delhi. The company has sold 94 units in the country till date. It has sold three cars from its Bengaluru outlet during the soft launch, he said.

Lamborghini is also considering the possibility of launching its sport utility vehicle in India by 2018, Winkelmann said.

“India is a huge market and holds immense potential for selling luxury sports cars. Lamborghini being the early entrant in the market we want to retain our edge over others. There is a high awareness about the brand here, but sales are low. We need to convert it into sales through various campaigns,” Winkelmann added.

Source:business-standard.com

No penalty on order of protective assessment until substantive assessment order is passed, rules Hig

IT : Assessment order being protective assessment order, penalty could not be initiated

Advances disclosed in returns and subsequently adjusted against sales couldn't be deemed as undisclo

IT : Addition under section 68 be deleted where it was found that said credits were duly disclosed in original return and no incriminating material regarding cash credit was found

In reassessment cases it is to be discussed whether reason to believe constituted a change of opinio

IT : Where section 10(29) exemption was allowed but in view of Supreme Court's decision reassessment notice was issue, matter to be readjudicated to find whether there was change of opinion

HC directed Tribunal to verify earlier order as Tribunal had passed two different orders in same app

Excise & Customs : Where Tribunal had passed two different final orders on different dates in same appeal, High Court remanded matter back to Tribunal for verifying status of earlier order and whether same had been withdrawn

No denial of sec. 10(23C) relief to educational body on existence of general objects in MOA apart fr

IT : Mere presence of objects in memorandum providing for other charitable activities would not disentitle a society to claim approval under section 10(23C)(vi)

Commissioner's order granting liberty to AO to proceed with penalty proceedings wasn't prejudicial t

CST & VAT : An action can be taken by superintendent of taxes under section 29 of Tripura Sales Tax Act only if it is permissible under law; giving liberty to AO to proceed with penalty proceedings would not be prejudicial to trader

Bye laws of NSE had statutory force and would prevail over Limitation Act, 1963

SEBI : NSE bye laws, rules and regulations have statutory force and would prevail over Limitation Act, 1963

Violation of RBI norms by NBFC in advancing loan to affiliates doesn't lead to denial of genuine bad

IT : Wherein regular course of its money lending business assessee - NBF had advanced loans to sister concerns/related parties, bad debts cannot be disallowed on ground of violation of RBI's guidelines

CII had to be taken from the date when asset was held by previous owner for computing cost of inheri

IT: In case of inheritance, cost of acquisition of asset should be calculated on basis of cost of acquisition by previous owner and it has to be indexed according to Explanation (3) to section 48

CBDT's instruction for min tax effect for filing of appeal by dept. is applicable to pending cases a

IT : Instruction No. 5/2014, dated 10-7-2014 revising monetary limit to Rs. 4 lakh for filing appeal before Tribunal would apply to pending appeals as well

Marketing or promotion of products of foreign principal in India would amount to export of service

Service Tax : Marketing/Promotion in India of products belonging to foreign principal amount to export of services and is not liable to service tax

Marketing or promotion of products of foreign principal in India would amount to expert of service

Service Tax : Marketing/Promotion in India of products belonging to foreign principal amount to export of services and is not liable to service tax

No petition before CLB alleging transfer of co's property if transfer was made prior to 3 months of

CL : Where alleged transfer of company's property took places 5 years back, CLB had no jurisdiction to entertain section 397/398 petition as it was time barred being beyond 3 months prior to filing of petition

ITAT computes ALP of interest on advance made to affiliates on basis of interest rate on deposit mad

IT/ILT : Where payment was made to non-resident abroad for services rendered abroad, no TDS liability would arise

Solitary transaction of sale and purchase of land couldn't be termed as 'adventure in nature of trad

IT : Solitary transaction of sale and purchase of land couldn't be termed as 'adventure in nature of trade'

Development Commissioners not to insist on fresh application from SEZ units for services already app

SEZ : Uniform List of Services to be followed in Special Economic Zones

India's Oct. Polished Exports -15%

India’s polished diamond exports fell 15 percent year on year to $2.219 billion in October, data published by the Gem and Jewellery Export Promotion Council (GJEPC) showed. By volume, exports dropped 16 percent to 3.786 million carats, while the average price of the exports rose 2 percent to $686.78 per carat.

Polished imports to the country increased 3 percent to $600 million during the month. As a result, net polished exports, representing the excess of exports over imports, declined 20 percent to $1.619 billion.

India’s rough imports fell 17 percent to $1.006 billion in October and rough exports slumped 37 percent to $107 million. Net rough imports, or rough imports minus exports, declined 14 percent to $899 million. India’s October net diamond account, representing the excess of total exports of polished and rough over total imports, fell 26 percent to $720 million.

During the first 10 months of the year, India’s polished exports rose 2 percent to $19.199 billion, while polished imports grew 2 percent to $6.210 billion. Net polished exports increased 3 percent to $12.989 billion.

India’s rough imports rose 7 percent to $14.557 billion during the 10-month period, and rough exports fell 19 percent to $1.295 billion. Net rough imports increased 11 percent to $13.263 billion.

India’s net diamond account fell to a deficit of $274 million during the 10-month period, compared to a surplus of $704 million in the same period a year earlier.

Source:diamonds.net

Essar Steel Raises $1 Billion Via Export Securitization

Essar Steel India Ltd has raised $1 billion through long-term export securitization to prepay existing rupee debt, the company said on Monday.The company had earlier raised $1 billion through external commercial borrowing (ECB) route.

“With this financing, the company has dollarized $2 billion of its debt which has led to significant benefits,” company said in a statement. “These include reduction in the average interest cost from rupee linked rate to dollar linked rate which has resulted in a large interest saving of approximately Rs.720 crore annually, and elongation of the average maturity of its debt from 3.5-6.75 years.”

Essar Steel is the fourth largest Indian steel maker with a capacity of 10 million tonnes at its integrated steel making facility in Hazira in Gujarat.

Source:livemint.com

Rule 8D can't be invoked in absence of any nexus between borrowed funds and tax free investments

IT : In order to bring any interest expenditure claimed by assessee under ambit of Rule 8D(2)(ii), it will have to be demonstrated by Assessing Officer that said interest is not directly attributable to any particular income or receipt

Clarification of DGFT have precedence over clarification issued by CBEC in matters of foreign trade

Excise & Customs : Opinion/clarification of DGFT is binding on customs so far as classification of any item in ITC (HS) or schedule of DEPB Rates, etc. is concerned under Foreign Trade Policy; DGFT clarification would have precedence over clarifications by CBEC

Vw India Begins Exports Of Polo To Mexico

Volkswagen India has expanded its export operations. With the market introduction of the new Polo in Mexico since the beginning of November this year, the carmaker has begun shipping its new Polo hatchback, which is manufactured at the Volkswagen Pune Plant, to Mexico. The Polo becomes the second model, after the Vento, which is exported to Mexico from India. The export versions of the Vento and the new Polo together account for nearly every second car produced at the Pune Plant.

According to Mahesh Kodumudi, president and managing director, Volkswagen Pune Plant and chief representative, Volkswagen Group India, “With the successful entry in Mexico last year with our Vento, we set an example of world-class quality being manufactured in India. With further expansion into the Polo segment, we have reiterated the fact that we are able to manufacture top products through our Indian operations.” He added, “We build the same quality of cars in Pune as around the world with equally robust construction. The Polo built in India has achieved a 4-star Global NCAP rating which is a strength when it comes to exporting to global markets.”

Volkswagen India began exporting cars from its Pune Plant in 2011 with the first export market being South Africa. Since then, the export operations of Volkswagen India have expanded to over 32 countries across three continents of Asia, Africa and North America. The range of cars being exported includes left-hand drive as well as right-hand drive cars. Additionally, Volkswagen India also exports parts and components of its cars to Malaysia which are assembled there for the Malaysian domestic market. The Volkswagen Pune Plant has produced over 89,000 cars for export till date.

Source:autocarpro.in

Spurt In Gold Imports Widens C/A Deficit

While record low oil prices have provided relief to the Indian government — which is struggling to reduce the current account deficit — soaring gold imports, have resulted in a sudden spurt in the trade deficit in October.

According to commerce ministry figures, released last week, the trade deficit went up to $13.3bn in October, up from $10.6bn a year ago. The deficit for the seven-month period (April-October) is slightly lower at $83.75bn as against $87.31bn in the corresponding period in the previous fiscal.

Ominously, gold imports shot up by a phenomenal 280pc in October to $4.17bn, from $1.09bn in October 2013. The deficit widened substantially despite a 19pc fall in oil imports to $12bn. Crude and gold are the two biggest import items in India.

India’s exports also fell by 5pc to $26bn — even as imports grew by 3.6pc to $39bn — with sectors such as engineering goods, pharmaceuticals and cotton yarn performing badly. Non-oil, non-gold imports also went up by 6pc to $22.9bn.

India’s current account deficit (CAD) fell to $32.4bn (1.7pc of GDP) in fiscal 2013-14, from a record high of $87.8bn (4.7pc of the GDP) in the previous fiscal, thanks to a contraction in trade deficit and an increase in net invisible receipts.

In the first quarter of the current fiscal, the CAD fell to $7.8bn (1.7pc of GDP) from $21.8bn (4.8pc) a year ago. In the second quarter though, it was up at $14.2bn. Analysts, however, expect the CAD to be lower at the end of the current fiscal.

An economist for Nomura India expects that the CAD would be contained at around 1.4pc of the GDP by the end of March 2015.

Citigroup, however, believes the CAD would be slightly higher than last year’s figure. “We maintain our view of FY15 CAD at $36.7bn (1.8pc of GDP), with risks balanced,” says a research note by Citigroup.

While admitting that exports could be weaker because of weak demand in Europe and China, the leading financial services group noted that India’s healthy foreign exchange reserves position (at over $315bn), combined with the promised reforms across several sectors would stabilise the Indian economy.

With the CAD unlikely to rise substantially from the level of $32.4bn seen at the end of the previous fiscal, the Indian currency is also expected to remain stable at levels of Rs62-63.

The CAD had shot up to $87.8bn at the end of fiscal 2012-13 following a spike in oil prices and soaring demand for gold. The government then imposed restrictions on gold imports by hiking the import duty from 2pc to 10pc. This had the desired effect as imports of the yellow metal slowed down, easing the trade deficit.

---

THE recent spurt in gold imports is, however, causing worries to the government which could tighten the curbs on imports of the yellow metal. India’s gold imports rose to 143 tonnes in September and topped 150 tonnes a month later on the eve of the festive season. Traditionally, gold consumption soars in India in September and October on the eve of Diwali and other festivals.

According to the World Gold Council (WGC), India regained its position as the world’s largest consumer of gold in the third quarter of 2014, overtaking China once again. During the July-September quarter, India bought 225.1 tonnes of gold in jewellery, coins and bars, as against 182.7 tonnes bought by China. India’s total gold consumption adds up to more than 900 tonnes a year.

Demand for gold jewellery shot up by 60pc in the quarter to 189.2 tonnes. With gold prices having fallen significantly in recent months, consumers went on a buying spree, hoarding up jewellery.

Government officials have been in talks with the Reserve Bank of India (RBI) about additional measures to be taken to curb gold imports. But officials acknowledge that increasing duty on gold imports could result in a spurt in smuggling.

Ever since the government imposed a 10pc duty on gold, there has been a significant rise in gold smuggling. Organised gangs deploy carriers who travel abroad and return home — mainly to the non-metro international airports — loaded with the yellow metal, which is concealed in their bodies or in their personal baggage.

The WGC estimates that about 200 tonnes of gold was smuggled into the country last year. But the authorities have also cracked down on the trade. The Directorate of Revenue Intelligence (DRI) has reported a 330pc increase in seizures; it made 2,150 seizures of gold worth Rs6bn in the first six months of the fiscal.

Earlier this year, the government eased curbs on ‘star trading houses’ — who export jewellery — to import gold directly. A ban had been imposed on these imports in July 2013 when gold imports had risen sharply.

The All India Gems and Jewellery Federation is opposed to the government introducing new curbs on imports. Last week, it urged the government and the RBI not to impose new curbs, which could ‘spell doom for the gems and jewellery sector.’

According to Haresh Soni, the federation chairman, the sharp increase in gold imports in Sep­tember and October was because of the low base effect. In September and October 2013, gold imports were low, but this year they have returned to the normal, pre-festive season levels, giving the impression that there has been a substantial increase in imports, he argues.

The federation has also asked its members to stop selling gold coins and bars, once their sale exceeds 300 tonnes as part of a self-regulatory initiative. It also wants the government to reduce import duty on the yellow metal to 2pc to reduce smuggling.

Source:dawn.com

Rupee Gains 8 Paise Against Dollar In Early Trade

The rupee strengthened by eight paise to 61.68 against the dollar in early trade today at the Interbank Foreign Exchange on increased selling of the US currency by exporters and banks amidst sustained foreign capital inflows.

Forex dealers said apart from increased selling of the American currency by exporters and banks, the dollar's weakness against

some currencies overseas, supported the rupee. A higher opening in the domestic equity market, which soared to new highs, too supported the rupee, they added.

The rupee had strengthened by 18 paise to end at 61.76 against the Greenback on Friday on suspected selling of the US dollar by state-run banks on behalf of the RBI and a strong rally in local stocks.

Meanwhile, the benchmark BSE Sensex spurted by 180.35 points, or 0.63 per cent, to hit another record-high of 28,514.98 points in opening trade today.

Source: economictimes.indiatimes.com

SC: 'BIFR' is sole authority to decide whether a sick company can be moved out of its jurisdiction

CL : After a reference is registered by BIFR, all throughout subsequent stages, BIFR has complete supervisory control over affairs of a sick industrial company till it is revived or decision to wind up such company is taken

HC upheld concealment penalty on assessee as it had filed nil return without paying the MAT liabilit

IT : Where assessee filed nil return and failed to compute book profit and pay MAT, which it was liable to pay, levy of penalty was justified

ITAT lays down criteria for selection of accounting method in construction projects

IT : In order to compute income from construction projects, method of accounting has to be selected keeping in view transfer of significant risks and rewards of ownership coupled with absence of uncertainty associated with realization of revenue, so that sale can be said to have taken place

ITAT had rightly set-aside time-barred assessment under sec. 144 after considering facts of the case

IT: Where Tribunal on appreciation of facts came to conclusion that order passed under section 144 read with section 251 was time-barred and cancelled same; conclusions reached by Tribunal could not be interfered with

Postal endorsement that there was nobody in factory neither amounted to refusal nor as closure of fa

Excise & Customs : Endorsement by postal authority that 'there is nobody in factory' cannot tantamount to refusal of assessee nor that can be read as factory is closed; hence, authority/Tribunal must take fresh steps to ensure service as per law

Units manufacturing diverse products with separate machinery were independent units; sec. 80-IB avai

IT : Where assessee company's both units manufacturing different products, having different machinery, assessee would be entitled for deduction under section 80-IB

No rejection of books due to non-issuance of cash memo on every sales as assessee was issuing one me

IT : Books of account of assessee could not be rejected on sole ground that only one consolidated cash memo was issued at end of day as it is not necessary that a cash memo is required to be issued for each and every sale

Discount given to customer via credit note could be claimed as deduction even if it wasn't shown in

CST & VAT: Where assessee issued credit note to customer subsequent to issue of sale bill and claimed deduction of same as discount given to customer, it was permissible for assessee to show discount given by a separate credit note subsequently and claim deduction even though discount was not shown in sale bill

HC quashed proceedings for violation of CIS norms by director as she had ceased to be a director on

SEBI: Proceedings for violation of CIS Regulations by director of agro-company were to be quashed if she had ceased to be director on date of offence

No unexplained investment if construction cost was determined as per State PWD rates and not Central

IT: Where assessee computed cost of construction of building on basis of rate fixed by State PWD, in absence of any circular or notification indicating that Central PWD rate alone was to be adopted in arriving at cost of construction, Assessing Officer was not justified in making addition under section 69 to assessee's income by adopting rates fixed by central PWD in respect of building in question

State Govt. Co. providing long-term finance for industrial projects would be eligible to benefits of

IT: A State Government company providing long-term finance for industrial projects would fall within meaning of 'State Industrial Investment Corporation' under section 43D

HC denies to condone delay due to death of counsel as assessee delayed to appeal by 4 years after de

IT : Death of counsel before matter was heard could not be a sufficient reason for delay of another 4 years in challenging an ex parte order of Tribunal

No concealment penalty if AO had disallowed claim of assessee after taking a different view of evide

IT: Where Assessing Officer rejected assessee's claim for deduction of commission paid to selling agents taking a different view of evidence on record, he was not justified in passing penalty order under section 271(1)(c) for raising a false claim of deduction

'Ford India doesn't have a dominant position in SUVs Market, says CCI

Competition Act: 'Ford India doesn't have a dominant position in SUVs Market

Hiring and renting of cab aren't distinguishable; ST is leviable irrespective of who enjoys control

Service Tax : Renting of cabs is liable to service tax irrespective of whether control over vehicle is of service provider or of service recipient and irrespective of whether it is 'hiring' of cabs or 'renting' of cabs; therefore, supplying vehicles for transportation of papers/answer sheets, examiners, staff etc. on distance travelled basis also amounts to rent-a-cab services

Aluminium and similar non-ferrous metal 'dross and skimmings' are manufactured goods; excisable wef

Central Excise : Aluminium dross and skimmings and similar non-ferrous metal dross and skimmings which arise as a by-product in process of manufacture of aluminium/non-ferrous metal products are manufactured goods and hence excisable with effect from 10-5-2008 in view of explanation added to section 2(d)

No sec. 11 relief to a trust involved in newspaper publishing without verifying materials on record

IT: No sec. 11 relief to a trust involved in newspaper publishing without verifying materials on record by ITAT

CBDT reconstitutes DRP at various places consequent to change of designation of DRP members

IT/ILT : Section 144C of The Income-tax Act, 1961 - Dispute Resolution Panel (DRP) - Reference to - Constitution of DRPS at Delhi, Mumbai, Pune, Kolkata, Ahmedabad, Hyderabad, Bangalore and Chennai

ESI Corporation wasn't liable to service tax; CESTAT sets aside demand of Rs. 1945 crores

Service Tax : No service tax can be collected in respect of services provided by the Employees' State Insurance Corporation set up under the Employees State Insurance Act, 1948

No additions by AO on other grounds without making addition in respect of reasons given for escaped

IT : Where no additions were made in respect of reasons given for reopening of assessment, it was not open to Assessing Officer to independently assess some other income

Govt. exempts excise duty on Anti-Malarial drugs and other goods required for Intensified Malaria Co

EXCISE & CUSTOMS LAWS : Section 5A of The Central Excise Act, 1944 – Power to Grant Exemption from Duty of Excise – Exemption to Goods Required for The Intensified Malaria Control Project (IMCP)-II Under The National Vector Borne Disease Control Programme (NVBDCP), Funded by Global Fund to Fight AIDS, TB and Malaria (GFATM)

Penality had to be reduced to 25% if full duty was paid alongwith penalty/redemption fine before iss

Excise & Customs : Where assessee had made deposit for provisional release of seized goods and said amount exceeds full amount of duty along with penalty and redemption fine, penalty under section 11AC must be reduced to 25 per cent of duty

IRDA mandates submission of life insurance data to Insurance Information Bureau

INSURANCE : Submission of Life Insurance Data to IIB

Commission paid to directors for managing Co's affairs partakes character of salary; not liable to s

IT : Commission paid to directors for managing affairs of company partakes of character of salary and, therefore, provisions of section 194H are not applicable in respect of for such payment

CLB directs transfer of shares to petitioner as person to whom transfer was pending didn't object to

CL : Where shares were pending for transfer in name of a person due to some non-compliances on part and in meantime no objection was given by such person in favour of petitioner to get shares transferred in petitioner's name, impugned shares were to be transferred in name of petitioner

RBI allows ECB borrowers to park ECB proceeds in fixed deposits for 6 months pending their utilizati

FEMA/ILT : External Commercial Borrowings (ECB) Policy – Parking of ECB Proceeds

Authorized dealers and money changers can release basic travel quota of Forex to Haj Pilgrims in cas

Release of Foreign Exchange for Haj/Umrah Pilgrimage

Assessee would get exemption from CST even on non-submission of 'C' form if exemption was granted by

CST & VAT: Where assessee was granted exemption from payment of tax under Madhya Pradesh General Sales Tax Act and Central Sales Tax Act and Assessing Authority denied exemption under Central Act on plea that in respect of inter-State sales assessee did not submit 'C' form, assessee was eligible to get exemption, even though it did not submit 'C' form

Decorating plain glazed ceramic tiles via printing/embossing was manufacture for sec. 80-IA relief

IT: Where assessee was engaged in job work of decoration of plain glazed ceramic tiles through process of printing and embossing designs, said process being in nature of 'manufacturing activity', assessee's claim for deduction under section 80-IA was to be allowed

DRP can't set aside proposed variation in draft assessment order and issue direction for further enq

IT : In terms of provisions of section 144C(8), DRP does not have power to set aside any proposed variation in draft assessment order and issue direction for further enquiry

Sum received by international news agency on distribution of news and related photos in India is roy

IT/ILT : Sum received by international news agency on distribution of news and related photos in India is royalty

Mere receipt of summons in Calcutta from authorities of Kerala won't give arise to cause of action i

Service Tax : Where assessee having centralized service tax registration at Kolkata received summons from Central Excise Intelligence, Kerala, no integral part of cause of action arose in Kolkata; therefore, Calcutta High Court did not have jurisdiction to hear writ thereagainst

HC ordered winding-up of respondent-Co. as it failed to pay agreed sum to petitioner and other credi

CL : Where respondent failed to pay admitted and agreed sum to petitioner and several other creditors, respondent was unable to pay its debts and was to be wound up

Levy of service tax on restaurants and hotel accommodation is unconstitutional, says Kerala High Cou

Service Tax : Levy of service tax on : (1) service forming part of supply of goods in a restaurant, as well as, (2) short-term accommodation services in hotels, inns, etc. is unconstitutional being violative of Entries 54 and 62, respectively, of State List

Penalty had to be waived off if assessee had paid ST even when there was confusion regarding manner

Service-tax : When there was confusion as to manner of payment of tax and assessee had acted honestly by paying service tax, without further delay, on being pointed out, penalties were liable to be waived

No additions on basis of confessional statement made during search if it wasn't supported with evide

IT : Assessing Officer cannot presume income under section 153A merely on basis of confessional statement; he is required to bring on record positive material in support of addition

No additions on basis of confessional statement made during search if it was supported with evidence

IT : Assessing Officer cannot presume income under section 153A merely on basis of confessional statement; he is required to bring on record positive material in support of addition

HC can’t review orders of SetCom; powers are confined to reviewing its decision making process rathe

IT: High Court cannot assume the role of an appellate authority to review orders passed by the SetCom -Its role is confined to judicial review of the decision making process adopted by the SetCom and not the decision itself

Tribunal can't extend stay indefinitely so as to operate during pendency of appeals

Excise & Customs : Tribunal can extend stay beyond 365 days but, in view of specific provisions of section 35C(2A) and especially third proviso thereto inserted by Finance Act, 2013, Tribunal cannot extend stay indefinitely to operate during pendency of appeals

Sum paid in excess of net assets to acquire business division on slum sale basis was to be treated a

IT : Where assessee required annual maintenance contract (AMC) of 'elevator division' business of ECE, said rights being in nature of 'business or commercial rights of similar nature'

AO had rightly made reference to DVO as assessee had utilized unaccounted income in construction of

IT : Where cost of construction shown in books of account was not proper, reference by Assessing Officer to DVO was justified

HC directed assessing authority to suspend recovery proceeding as assessee had agreed to pay sales t

CST & VAT : Tamil Nadu VAT : Where assessee was in arrears of sales tax and thereupon Assessing Authority addressed a letter to principal of assessee informing in this regard, since assessee agreed to pay dues, Assessing Authority was directed to keep impugned proceedings in abeyance

No abuse of dominance by electricity-co. when it didn't allow others to supply electricity in its ar

Competition Act: Where OP-Local authority opposed Informant's request for supply of electricity no case of contravention of provisions of section 4 was made out as exemption is granted to a local authority in terms of provisions of section 42(3) of Electricity Act, 2003 from provision of its network to other distribution licensee for wheeling electricity by way of open access

No agency PE under India-France DTAA even if agent is wholly dependent on foreign Co. unless transac

IT/ILT : As per Article 5(6) of India-France DTAA, even if agent is wholly or almost wholly dependent on the foreign enterprise he still will not constitute dependent agent PE unless additional condition of the transactions being not at arm’s length price is fulfilled. The initial onus is upon the Revenue to show that the transactions are not at arm’s length price, thus, AO was directed to examine whether the transactions between the agent and assessee (i.e., foreign company) were at arm’s lengt

Sec. 14A disallowance can be made even when assets yielding tax-free income form part of trading ass

IT : Provisions of section 14A, read with rule 8D of 1962 Rules, apply even in a case where assets yielding tax-exempt income form part of trading assets of assessee

Concealment penalty on assessee upheld on his failure to explain source of flats acquired and shown

IT: Where assessee claimed that flats shown in return of income was acquired by surrendering his tenancy rights but failed to prove such rights, penalty levied under section 271(1)(c) was justified

ITAT directs AO to allow sec. 54F relief after considering recent ruling of Apex Court in case of Sa

IT: Where assessee cited order of Supreme Court in support of claiming deduction but same being recent was not available to Assessing Officer, nor before Commissioner (Appeals), matter was to be restored to decide in light of said order

No revision by CIT due to retro-amendments if AO had already made assessment

IT : Though amendment in section 115JB by Finance (No. 2) Act, 2009 by way of insertion of Explanation (i) is retrospectively brought with effect from 1-4-2001, revenue could not have benefit of same where assessment was already made

Delay filing appeal due to accident of staff of representative wasn't condonable without medical cer

Service-tax : Delay caused due to accident of staff of Chartered Accountant cannot be condoned when assessee could not name said staff and no medical certificate evidencing injury was filed

Petitioner couldn't file civil suit to recover interest if CLB admitted winding up plea on default o

CL: Where winding up petition for non-payment of principal sum had been allowed, petitioner was not to be relegated to remedy of civil suit for its claim of interest on that sum

ITAT deletes TP addition by following earlier case to hold that transaction was at ALP as facts rema

IT/ILT : Following order passed by Tribunal in assessee's own case relating to earlier assessment year, impugned addition made by TPO to assessee's ALP in respect of exports of spares and components to AE by applying internal TNMM, was to be set aside

RBI reduces realization and repatriation period for export proceeds to 9 months for units in SEZ, EO

FEMA/ILT : Export of Goods / Software / Services - Period of Realisation and Repatriation of Export Proceeds for Exporters Including Units in SEZS, Status Holder Exporters, EOUS, Units in EHTPS, STPS and BTPS

Banks to alert customers via SMS/email before levying penal charges for not maintaining min balance

BANKING : Levy of Penal Charges on Non-maintenance of Minimum Balances in Savings Bank Accounts

Sum received for hiring out dredgers wasn’t taxable as royalty under Article 12 of India-Netherland

IT/ILT : Sum received by Dutch Company for hiring out dredgers to its Indian AE would not be taxable in India as 'Royalty' as Article 12 of India-Netherland DTAA does not include such payments within its ambit.

No writ against CLB's order unless Compat was dysfunctional at the time of filing writ petition

Competition Act : CCI imposed penalty upon petitioner and directed it to file undertaking in terms of directions contained in order, writ petition filed by petitioner challenging that order would not be maintainable as CompAT was functioning and appeal if preferred by petitioner to CompAT would have been taken up for hearing along with application for interim relief which would have been filed therewith and petition could not be compared with other petitions in batch wherein interim relief was g

Sums collected by director from customers in ordinary course of business couldn’t be held as deemed

IT : Where assessee, a shareholder and director of a company collected certain amount from customers of company in ordinary course of business and kept it in his savings account which was finally remitted to company within a gap of short period, same could not be added to assessee's taxable income as deemed dividend

Credit of input services can't be denied merely because value thereof don't form part of final produ

Cenvat Credit : Revenue's submission that 'CENVAT credit cannot be allowed for service if value thereof does not form part of value subjected to excise duty' runs counter to fundamental concept of Service Tax; hence, transportation of final product upto customer's premises was eligible for Cenvat credit as input service

Income from letting out of office alongwith furniture is income from other sources if both are insep

IT : Income received by assessee by letting out fully furnished office premises and furniture was required to be assessed under head income from other sources

Sec. 14A disallowance couldn’t be made if assessee hadn’t earned or received any exempt income durin

IT : Disallowance cannot made under section 14A where assessee had not earned/received any exempt income during relevant year

In lending business one can’t assume that cash shortage found in search to be set-off with unexplain

IT: When undisclosed income that was invested remained unexplained by assessee, shortage of cash in unaccounted money lending business could not be set off against unexplained investment on basis of mere presumption

Sec. 80P: Society wasn't a co-operative bank if it didn't receive deposits and admits other society

IT : Where assessee, a co-operative society registered under the Karnataka State Co-operative Societies Act, did not receive deposits from public and, moreover, by-laws of society permitted admission of any other co-operative society as its members, assessee could not be regarded as primary-co-operative bank and, there being no application of section 80P(4), its claim for deduction under section 80P(2)(a)(i) was to be allowed

Mere claiming forex fluctuation loss under wrong provision won't lead to levy of concealment penalty

IT : Merely because assessee had claimed deduction of foreign exchange fluctuation loss on account of acquisition of fixed assets wrongly under section 37 instead of dealing same under section 43A, no penalty would be levied under section 271(1)(c)

CLB directs Kanthi Narahari to re-commence hearing on judicial matters of Andhra Pradesh and Telenga

COMPANIES ACT, 1956 : Section 10E of The Companies Act, 1956, read with Regulation 4 of The Company Law Board Regulations, 1991 - Constitution of Board of Company Law Administration - Revision in Work Distribution of Chennai Bench – Cessation of Office Order Dated 4-9-2014 w.e.f. 1-12-2014 Allocating Additional Charge of Chennai Bench Pertaining to States of Andhra Pradesh and Telengana to Member (Judicial) in Addition to his Existing Work

SEBI plans to widen definition of insider in insider norms and to reduce timeline to complete delist

SEBI : SEBI Board Meeting – Proposed Replacement of SEBI (Prohibition of Insider Trading) Regulations, 1992 Inter Alia for Strengthening Legal and Enforcement Framework; Conversion of Listing Agreements into Regulations; Proposed Amendment in SEBI (Delisting of Equity Shares) Regulations, 2009 & SEBI (Mutual Funds) Regulations, 1996 etc.

Mere claiming forex fluctuation under wrong provision won't lead to levy of concealment penalty on a

IT : Merely because assessee had claimed deduction of foreign exchange fluctuation loss on account of acquisition of fixed assets wrongly under section 37 instead of dealing same under section 43A, no penalty would be levied under section 271(1)(c)

No evasion penalty on issue relating to classification if assessee was boda-fide disputing it before

Excise & Customs : In matters involving classification, where assessee was bona fide disputing classification before Supreme Court, no 'evasion penalty' can be levied under rule 25 of Central Excise Rules, 2002

HC dismissed winding-up plea against guarantor-Co. as adjudication of debt against borrower was stil

CL : Winding up petition against guarantor of loan would not be maintainable when adjudication of debt against borrower was pending

No sec. 41(1) addition if liability towards old creditors was discharged in subsequent years

IT: Where liability towards old creditors shown in books of account was discharged in subsequent years, section 41(1) could not be applied to make addition of said amount