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

Interest on borrowings used by investment co. to invest in securities is an allowable exp.: HC

IT : Where borrowed amount was invested in shares and debentures for purpose of business, interest paid thereupon would be allowed as deduction under section 36(1)(iii)

Transactions between head office and foreign branch aren't international transactions under TP provi

IT/ILT : Since the branch office in Canada is only a branch office and not a separate entity distinct from the assessee, the transactions between the head office and branch office in Canada cannot be considered as international transaction

Assessment was time barred as department failed to obtain Commissioner’s permission to extend time-p

CST & VAT: Odisha VAT - Where Competent Authority conducted audit at business premises of assessee and submitted Audit Visit Report to Assessing Authority on 12-12-2006 and Assessing Authority issued on assessee a notice dated 23-8-2007 and later he passed assessment order under section 42 on 18-6-2008, order of assessment was barred by limitation

Now resident investor can re-book foreign currency swaps to hedge exchange rate

FEMA/ILT : Risk Management and Inter Bank Dealings: Foreign Currency (FCY) - Inr Swaps

Department couldn't recover its dues from buyer who had purchased property in auction under SARFAESI

Excise & Customs : Buyer of property in auction from bank under SARFAESI Act cannot be asked to pay central excise dues of original owner of property because rights of bank are superior to rights of Department and even proviso to section 11 is inapplicable, as such buyer cannot be regarded as 'successor'

Mere issuance of ads by banks to launch gold loan products wasn't indicative of any anti-competitive

Competition Act : Where informant alleged that scheduled commercial banks had entered into anti-competitive arrangement to determine price and control gold loan business, and, there was nothing on record to suggest that alleged agreement had been arrived at by these banks in concert, no case of contravention of provisions of section 3 was made out

Receipts from allowing usage of building constructed on leasehold land along with facilities is busi

IT : Where a company was permitted to commercially exploit property belonging to assessee and to use facilities thereon supplied by assessee, income received by assessee would constitute its business income

HC remands case to ITAT as it had reversed finding of CIT(A) without assigning any reasons

IT: Where Tribunal without assigning any cogent reasons reversed finding of Commissioner (Appeals) that revenue had not produced material in support of its claim that assessee had shown lesser gross profit, matter was to be re-adjudicated

Even statutory reserve created by NBFC was to be added back for computing book profits for MAT purpo

IT : For the purpose of section 115JB of the Act, statutory reserves (such as reserve required to be created by NBFC under section 45-IC of the RBI Act,1934) are to be treated alike and in a similar manner as other reserves. The reserve, which is required to be created under section 45-IC of the Reserve Bank of India Act, 1934 , is out of the profits earned by a non-banking financial institution. It is not an amount diverted at source by overriding title.

Delay in issue of completion certificate by local authority couldn’t be a ground to deny 80-IB(10) r

IT-I : Where two housing projects developed by assessee were sanctioned by a common approval by local authority, in view of fact that those projects were independent of each other, assessee's claim for deduction could be allowed for project in respect of which conditions specified in section 80-IB(10)(a)(i) were duly satisfied

No denial of credit on capital goods when depreciation wrongly taken on duty was reversed subsequent

Cenvat Credit : Where depreciation wrongly taken on duty element is reversed in subsequent year, credit taken on capital goods cannot be denied

Service tax paid on commission in respect of trading of goods isn't eligible for credit

Cenvat Credit : Service tax paid on commission in respect of trading goods is not eligible for credit because same is not in or in relation to manufacture of final products

ITAT rejected CUP method for royalty paid to AE as there was no comparable data of uncontrolled tran

IT/ILT : ITAT rejected CUP method for royalty paid to AE as there was no comparable data of uncontrolled transactions

Non-payment of security expenses to liquidator and making bogus claim amounted to contempt of Court

CL: Where while recalling order of winding up at instance of respondents, Court had directed respondents to pay charges for security of assets of respondent company by way of reimbursement to official liquidator, respondents by not reimbursing expenses were in palpable non-compliance and consequent compounded contempt of order of Court

No TP adjustment of interest when rate of interest charged to AE was more than LIBOR

IT/ILT : Where assessee charged interest on loan advanced to AE and interest charged was more than arm's length interest rate, adjustment on account of arm's length of interest was unwarranted

Sale of assets by a firm to a Co. would be chargeable to capital gain as it wasn't a case of success

IT: Where assessee firm sold its assets to a company and said transaction did not fall under section 47(xiii), assessee was liable to pay capital gains tax

Reference to TPO is invalid if made after expiry of time-limit for issuing sec. 143(2) notice

IT/ILT : Where issue of scrutiny assessment notice u/s143(2) is time-barred, AO cannot make a reference to TPO u/s 92CA. Reference u/s 92CA without issuing notice u/s 143(2) is invalid reference and order passed by TPO on invalid reference is non est and void ab initio. A nonest and void ab initio order passed by the TPO on 29.10.2010 determining the arm's length price u/s 92CA(3) of the Act cannot form a basis to formulate a belief that certain income chargeable to tax has escaped assessment wi

CLB couldn't direct investigation into affairs of a Co. which was merely a party to oppression proce

CL : While sections 235, 237 and 247(1) deal with investigation into affairs of a or any company and section 239 deal with investigation into affairs of a body corporate connected in specified manner with said company whose affairs are being investigated, section 247(1A) deals with investigation into affairs of the company which is subject matter of any proceedings pending before CLB

Pre-deposit had to be waived off when demand for earlier period was set aside in similar case

Service Tax : Where, for earlier period, demand was set aside on merits; then, for subsequent period, pre-deposit must be waived in full

No penalty if NR didn’t offer interest income from NRE a/c under impression that it’s exempt under S

IT : Where assessee did not offer interest income to tax received from his NRE fixed deposits account under a bona fide belief that his case was covered under section 10(4) no penalty could be imposed upon him

AO can estimate income of current year on basis of GP ratio of last year if books of account are rej

IT: Profits estimated in previous years is a safe guide for estimation of profits for assessment year in question for estimating turnover since business activity conducted by assessee remains same

RBI allows online reporting of FDI transactions under e-Biz platform

FEMA/ILT : FDI - Reporting under FDI Scheme on the e-Biz Platform

RBI eases curb on import; does away with requirement to submit Form A-1 for remitting forex above U

FEMA/ILT : Import of Goods into India

No penalty on disallowance of exp. when assessee had made bona-fide claim duly supported by genuine

IT : Where assessee's claim for expenses were supported by documents and non-genuineness of these document was not proved, no penalty could be levied under section 271(1)(c)

Failure to explain cash deficit in books of account during assessment invokes Sec. 68 addition

IT : Where there was no proper explanation for cash deficit in books of account and amounts were spent without there being any explained sources, same was to be covered by section 68

Mere closure of assessee's unit doesn't demonstrate undue hardship on assessee

Excise & Customs : While deciding stay application, Tribunal has to consider material placed by assessee on record to demonstrate undue hardship and then balance it with interest of revenue; Mere closure or then taking over by financial institution ipso facto is not sufficient to demonstrate undue hardship

Issuing of notice in winding up plea without any material evidence is a harsh call; to be avoided, s

CL : Issuing notice in a winding up petition, without any material evidence, is a drastic step which should be avoided

Sec. 10A relief allowable on gross export bills even if assesse later on adjusts it with overseas pa

IT: Where assessee received permission from RBI for netting off of payables abroad against import receivables, deduction under section 10A was to be allowed on total amount of gross bills which was received in convertible foreign exchange

If AO adopted GP rate on ad hoc basis for civil contractor, ITAT was correct in adopting presumptive

IT : Where Assessing Officer computed gross profit rate of assessee at 25 per cent of gross receipts without any justification, Tribunal was justified in adopting gross profit rate of 8 per cent as mentioned in section 44AD even though turnover of assessee was in excess of Rs. 40 lakh

High Court upheld ITAT's order setting aside penalty considering favourable order passed in subseque

IT : No penalty to be levied for wrong claim of deduction under section 10A if there was no concealment of income or furnishing of inaccurate particulars

AO failed to appreciate assessee's objections while concluding re-assessment; matter remanded back

CST & VAT : Tamil Nadu VAT : Where Assessing Authority passed revised order of assessment on assessee without considering its objections, matter was remitted to redo assessment after considering objections

Partner could claim TDS credit of dissolved firm if he included firm’s income in his return

IT : Where assessee partner upon dissolution of firm became proprietor of business run by firm and included income of firm in his return, assessee would be entitled for credit of TDS of firm in accordance with rule 37BA

Appeal can be filed before HC within whose jurisdiction either Co. has its registered office or carr

CL : In respect of a corporate entity, an appeal could be preferred before High Court within whose jurisdiction corporate entity carries on its business or before High Court within whose jurisdiction corporate entity has its registered office

Appeal can be filed before HC within whose jurisdiction either Co. has its registered office or carr

CL : In respect of a corporate entity, an appeal could be preferred before High Court within whose jurisdiction corporate entity carries on its business or before High Court within whose jurisdiction corporate entity has its registered office

Shortage of input materials substantiates charges of clandestine removal of excisable goods

Excise & Customs : Shortage of clinkers and coke breeze along with excess quantity of limestone quarried is sufficient enough for authorities to conclude clandestine removal of quantity of cement which could have been produced therefrom

Exp. incurred on expansion of business which had no nexus with existing business couldn’t be allowed

IT: Where expenditure incurred by assessee for expansion of business had no nexus with business carried on by assessee, same was not allowable under section 37(1)

Volkswagen Closes Two India Sales Offices To Cut Cost

Volkswagen is tightening its sales and marketing operations in India to cut cost as local sales remain muted. The auto maker has closed its regional sales offices in Delhi and Bengaluru, and is focusing on exports to utilise capacity.

Wolfsburg, Germany-based Volkswagen entered the Indian market in 2007 and started local production in 2009. It has capacity to produce 1.3 lakh cars a year, or more than 10,800 a month, at its plant in Pune, but makes fewer vehicles. Since the start of the current fiscal year in April, it manufactured close to 89,000 cars through January, at an average of 8,900 a month. More than 60 per cent of these vehicles are exported.

It started the regional offices - in Delhi for north and east India and in Bengaluru for south - to streamline marketing and sales functions after facing much flak from customers over the quality of service and supply of spares. Volkswagen has now closed these offices and merged them with its national sales company (NSC) that operates from the local head office in Mumbai, company sources said.

The decision was made purely on "operational basis and is only related to the field forces" of Volkswagen and unit Audi, said Thierry Lespiaucq, managing director of Volkswagen Group Sales India. These functions will now be centrally coordinated, he told ET.

Some employees of the regional offices have moved to Mumbai while a few others have been asked to operate from home, the sources said. "They have been given an option to either shift to Mumbai or work from home based on criticality and seniority of profile, though sales operations in the automotive industry require more of a field job to generate volumes and coordination with the dealers across the network," one of them said.

Tough market conditions in India are forcing auto makers to redefine their strategies to maintain sales, said Amit Kaushik, principal analyst at consultancy firm IHS Automotive. "These kind of consolidations generally help firms save on operational expenses and potentially pass on more benefits to customers," in the form of discounts and freebies, he said.

Volkswagen, Europe's largest carmaker by volume, aims to becoming the world biggest by 2018, surpassing rivals Toyota Motor and General Motors. Despite the current weak market conditions in India, it views the country as a critical market to achieve this target. "Experts believe that India will emerge as one of the world's largest automobile markets by the end of this decade. In light of this, India plays a significant role in the Volkswagen Group's global growth strategy," Lespiaucq said.

To keep its operations running at maximum efficiency even as it waits for a recovery in India, the company is increasing exports. Its shipment from India rose more than two-and-half times to 57,183 units in the first 10 months of this fiscal year, making it the fifth largest auto exporter from India. On the contrary, domestic sales declined 19 per cent to 36,588 units in the same period. These figures include its stock at the beginning of the year.

Lespiaucq said the company would increase the use of locally made components in its vehicles and launch new models. Using more locally sourced components would allow the auto maker cut cost and keep prices more competitive in India's price-sensitive market. New launches could help drive sales, as analysts blame its aging and limited portfolio as one of the reasons for weak sales. New models have helped companies like Maruti Suzuki, Hyundai Motor and Honda Motor post healthy sales growth in an otherwise weak market.

When Volkswagen entered India, it had a dream run - it clinched a 4.5 per cent market share within three years of starting operations. But then its failure to bring in new models kept buyers away.

It plans to launch new models and some innovate cars like a compact sedan based in its Vento platform. "The Indian automotive market has undergone some structural changes over the last two years. The compact SUV and compact saloon segments in particular have emerged as fastest growing segments.

Volkswagen is contemplating on models in these segments but no decisions have been taken so far," Lespiaucq said.The company also plans to open a regional centre for parts in Bengaluru and a training academy in Delhi.

Source:economictimes.indiatimes.com

Charge of clandestine removal not sustainable without any evidence of purchases and production

Central Excise : Without corroborative evidences in form of procurement of raw materials, use of production facilities, transportation of, raw materials into factory and finished goods out of factory, and financial flow of these transactions, allegation of clandestine procurement, production and removal cannot sustain

CBEC extends jurisdiction of Directorate Gen of Excise Intelligence for assigning Excise cases booke

EXCISE & CUSTOMS LAWS/ST LAWS : Rule 3 of the Central Excise Rules, 2002 - Jurisdiction of Central Excise Commissionerates - Specified Jurisdiction of Principal Director General or Director General of Central Excise Intelligence

Payment to NR under a composite contract for offshore supply and installation subject to TDS

IT/ILT : Payment made to US firm for installation of machinery would be liable to deduction of tax at source there being no severality of sale and installation components and payee being not covered by section 195(1)

Income held as undisclosed as assesse imported goods under import license but claimed assignment the

IT: Where assessee claimed that it had earned through assignment of import license but revenue found that assessee itself imported goods and sold same in open market, reopening and additions were to be sustained

CBEC issues guidelines to assign Excise/Service tax cases booked by Directorate General of Excise In

EXCISE & CUSTOMS LAWS/ST LAWS : Section 2(b) of the Central Excise Act, 1944 - Central Excise Officer - Instructions on Adjudication of Central Excise and Service Tax Cases Booked by DGCEI

India Slashes Iran Oil Imports In January -Trade

India slashed imports of Iranian oil in January as New Delhi scrambled to bring its purchases from the OPEC member in line with 2013 levels, according to data obtained from trade sources and ship tracking data on the Thomson Reuters terminal.

India, Iran's top client after China, took about 273,500 barrels per day (bpd) of Iranian crude in January, a decline of 21.5 percent from the previous month, the data showed. The imports were about a third less than a year ago.

The cuts still leave India's daily average volumes for the April-January period above sanction limits as Iran and world powers try to outline an agreement by March 31 to end Tehran's isolation in return for curbs to its nuclear programme.

U.S. President Barack Obama said early this week that extending the March deadline would not be useful if Tehran has not agreed by then to a basic framework that assures world powers it is not pursuing nuclear arms.

The negotiators have set a June 30 final deadline for a full accord, and Western officials have said they aim to agree on the substance of that deal by the end of next month.

Sanctions on Iran were softened at end-2013 as discussions on a final resolution began, allowing Asian buyers of Iranian oil to maintain purchases at then-current levels.

India, with daily imports now running above those volumes, last month asked refiners to cut oil purchases from Iran to keep the shipments in line with the previous fiscal year's levels of about 11 million tonnes or 220,000 bpd.

In the first 10 months of this fiscal year, though, India has taken about 10.6 million tonnes or 252,500 bpd, up a quarter from the same year-ago period, the data showed.

State-run Mangalore Refinery and Petrochemicals Ltd was the biggest Indian client of Iran in January followed by Essar Oil.

The two refiners are expecting to get another 392,000 tonnes, or 102,200 bpd, from Iran in February via three cargoes containing oil and condensate, data from trade sources shows.

That means India's final intake from Iran for the year ending March 31 could come in close to the target of 11 million tonnes, unless March arrivals are higher than expected.

Indian Oil Corp, which is not a regular importer of Iranian oil, has rescheduled a shipment to March from February, a company source said. It is not currently known if there are other cargoes scheduled for arrival next month.

This fiscal year so far Iran has accounted for 6.6 percent of India's crude imports, compared with 5.3 percent a year ago. It is the seventh largest crude supplier in terms of volume, same as last year. Overall, India imported 4.47 million bpd of oil in January up 21.3 percent from a year earlier.

Over April-January India took in 9 percent more oil from Latin America, while imports from the Middle East declined 6 percent. Imports from Africa rose 12 percent compared to the same period a year ago, the data showed.

Source:maktoob.news.yahoo.com

Now Govt. focuses more on prosecuting persons evading taxes on a large scale

IT/ILT : Section 276C of the Income-Tax Act, 1961 - Wilful Attempt to Evade Tax, Etc. - Shift in Focus of Income-Tax Department from Civil Consequences to Criminal Consequences in Serious Cases of Tax Evasion

Vietnam Suspends Peanut Imports From India

The official suspension became valid on February 6. Caryedon serratus Olivier, associated entirely with groundnuts, is included in the Group I category of harmful organisms that may cause serious damage to plants. It has not been found in Vietnam.

Earlier in January 2015, Vu Van Huong, Director of the Department of Plant Quarantine I said his staff found nearly 700 tonnes of peanuts having live serratus insects imported to Hai Phong port.

The Ministry promptly asked the Plant Protection Department to closely control imported peanut cargoes. Relevant Indian agencies have been informed and requested to counteract the issue immediately. The Plant Protection Department held several examinations and confirmed solutions proffered by the Indian exporter.

Source:english.vietnamnet.vn

Iran To Resume Basmati Imports From India Soon

Indian rice exporters may soon be able to resume Basmati exports to Iran. Top officials in the country have assured India that the temporary ban placed on imports late last year will be lifted shortly and the process of registration of suppliers will begin.

A team of officials from the Commerce Ministry recently visited Iran to hold talks with their counterparts on exports of a variety of products including rice.

“We were assured that Iran is ready to resume rice imports as the glut in their domestic market has eased substantially,” a Commerce Ministry official told BusinessLine. Business for rice exporters, however, is not likely to be as brisk as before, as Iran still has substantial stocks of rice.

“Iranian officials have indicated that they will resume the process of re-registration of Basmati suppliers. The country is supposed to come up with its notification (on lifting curbs) on March 21. We have to find out what happens,” said Rajen Sundaresan from the All India Rice Exporters Association (AIREA).

Sundaresan was part of the business delegation that accompanied the Indian officials. “We expect rice exports to Iran to be 3-5 lakh tonnes (lt), as it will not be possible to touch the earlier highs,” the Ministry official said.

In 2014-15, exports of rice from India to Iran are likely to be around 8 lt, as opposed to expectations of 10 lt. In 2013-14, India’s export of Basmati to Iran was a whopping 1.4 million tonne.

Sundaresan said that while Iran had not indicated how much they want to buy, the general expectation was that it would be lower this year as there was still a lot of existing stock in the market.

Iran stopped importing rice late last year (August-September) as there was a glut in the country because of a robust local production and a spill-over in stocks from the previous year.

Iran had stepped up its purchase of all items including rice from India over the last couple of years to get around economic sanctions imposed by Western countries over its alleged nuclear activities.

India and Iran have put in place a Rupee payment mechanism wherein part payment for the oil purchased from Iran by India is deposited in a Rupee account in India’s UCO Bank. The money is then used to make payments to Indian exporters to Iran thereby avoiding payments in Dollars and through foreign banks.

Source:thehindubusinessline.com

India's Gold Jewellery Demand Reaches Record 662 Tn In 2014

Gold jewellery demand in India, the world's largest consumer, touched record 662.1 tonnes in 2014 despite curbs on gold imports but investment demand slumped by 50 per cent from last year, the World Gold Council (WGC) said today.

In 2015 also, gold jewellery demand is expected to remain strong if the government does not impose further market distorting policies and price volatility does not unsettle the market, it said in its latest report.

India imported 769 tonnes of gold in 2014, down from 825 tonnes in the previous year. However, the annual smuggled gold is estimated to have been around 175 tonnes, it added.

"It was a standout year for Indian jewellery despite government restrictions on gold imports, reinforcing the nation's affinity with gold," said Marcus Grubb, Managing Director, Investment Strategy at the WGC, in the report.

Jewellery remains the biggest component of demand for gold. Indian demand for jewellery was up by eight per cent to 662 tonnes, the best year of jewellery demand since records began in 1995, the WGC report said.

Overall gold demand stood at 842.7 tonnes in 2014, of which gold jewellery demand alone was 662.1 tonnes.

The fourth quarter growth was concentrated in October (Diwali) and November (wedding season), before the sudden and unexpected removal of import restrictions at the end of the month threw the market into disarray, it said.

"The government announcement that the 80:20 rule would be retracted took the market completely by surprise. Imports came to an almost complete halt as the market tried to grasp the implications and assess whether the system may be replaced with alternative measures," the WGC said.

According to WGC, smuggling volumes have since risen again as the 10 per cent import duty on gold continues to make this activity profitable enough for those operating well established routes.

"These channels are likely to remain open until government intentions with regards to gold imports are more clearly communicated to, and understood by, the market," it said, adding that annual gold smuggling volumes are estimated to have been around 175 tonnes.

In stark contrast to the record year in jewellery demand, WGC said that Indian investment slumped by 50 per cent to 180.6 tonnes in 2014 - a five-year low.

"Although demand for bars of very small denominations was healthy during the auspicious festival period in Q4, larger scale investors -- traditionally focussed on large (kilo) bars -- were notable for their absence, preferring to invest in alternative asset classes," it said.

Gold used in other industrial and decorative applications fell by six per cent in 2014, slipping to a five-year low of 87.5 tonnes.

"The year-on-year decline was again concentrated in India, where demand for jari thread used in clothing was buffeted by changing consumer tastes," it added.

Source:business-standard.com

Rupee Weakens Against Dollar To 62.39

The Indian rupee weakened for a fourth consecutive session against the dollar on Thursday, tracking losses in the Asian currencies markets.

At 2.20pm, the home currency was trading at 62.39, down 0.2% from Wednesday’s close of 62.26. The local unit opened at 62.43 per dollar and touched a low of 62.47—a level last seen on 9 January.

“The market is set to trade in the 61.50-63 range in the short term owing to the dollar demand from importers and possible aftershocks of the Delhi election results,” said a foreign exchange trader on conditions of anonymity.

Dealers were cautious ahead of the Index of Industrial Production (IIP) and Consumer Price Index (CPI) data due later on Thursday. A Bloomberg poll expects CPI inflation will be 5.5% for January compared with 5% in December while factory output will grow by 1.8% in December compared with 3.8% in November.

Major Asian currencies were trading lower against the dollar. The South Korean won was down 1.2%, Indonesian rupiah 0.68%, Malaysian ringgit 0.58%, Thai baht 0.14%, Philippines peso 0.1%, China renminbi 0.05%. However, Japanese yen was up 0.88% and Singapore dollar was up 0.1%.

The benchmark S&P BSE Sensex rose 0.08%, or 23.42 points, to 28,510.55.

The yield on India’s 10-year benchmark bond was trading at 7.743% compared with its Wednesday’s close of 7.734%. Bond yields and prices move in opposite directions.

Since the beginning of this year, the rupee has gained 1%, while foreign institutional investors have bought $2.53 billion from the local equity market and $4.45 billion from the bond market.

The dollar index, which measures the US currency’s strength against major currencies, trading at 94.809, down 0.19% from the previous close of 94.985.

Source:livemint.com

Income held as undisclosed as assesse imported goods under import license but claimed assignment the

IT: Where assessee claimed that it had earned through assignment of import license but revenue found that assessee itself imported goods and sold same in open market, reopening and additions were to be sustained

Tribunal couldn't dismiss appeal before deciding on request for extension of time to make pre-deposi

Excise & Customs : Where Tribunal had dismissed appeal for default in compliance with pre-deposit without first deciding application for extension of time to comply therewith, High Court remitted matter back to Tribunal subject to compliance with pre-deposit

Issue relating to applicability of SSI-exemption isn't maintainable before High Court

Excise & Customs : Where issue that arises for consideration is 'what will be rate of duty that is payable by assessee, but for exemption notification in question', said issue cannot be raised in appeal under section 35G before High Court

Comparable rent paid for lease is deductible even if assessee charges higher rent from related party

IT : Where assessee having taken a commercial property on lease, sub-let it to its related concern, in view of fact that rent paid by sub tenant was much more than what assessee had to pay to lessor and, moreover, rent paid by assessee was a comparable transaction with a third party, impugned disallowance made by authorities below under section 40A(2) was to be deleted

AO couldn’t assume jurisdiction for Sec. 132 requisition in the year Sec. 153A wasn’t introduced

IT: Where requisition under section 132A was made prior to 31-5-2003 when section 153A was not in existence, assumption of jurisdiction under section 153A by Assessing Officer was bad in law and same was liable to be quashed

Addition upheld on firm for suppressing value of property sold to partner who admitted receipt of hi

IT: In view of market value of property at Rs. 62.38 lakh, assessee's admission of receipt of Rs. 65 lakh as sale consideration was to be upheld

HC directed liquidator to hand over possession of property to licensor on liquidation of Co.

CL : Where business of company in liquidation was sold to appellant with an express stipulation that property of respondent was to be handed over before stipulated date, Official Liquidator was to be directed to hand over vacant possession of property to respondent

AO rightly directed grant of registration certificate on expiry of one month of applying registratio

CST & VAT: West Bengal VAT - Where assessee made an application for registration in Form 1 accompanied by documents on 12-2-2013 and Assessing Authority issued certificate of registration with its validity from 10-5-2013, Assessing Authority was directed to issue registration certificate with its validity from 14-3-2013

ITAT rejects TPO’s working of ALP under RPM on basis of hypothetical reseller’s profit margin

IT/ILT : Where while computing ALP of transaction of purchase of books by assessee from its AEs, TPO had not adopted profit margin of distributors on basis of actual figures or undisputed discount policies on cover prices but based on certain hypothesis which was based on misconception of facts, impugned ALP adjustment is unsustainable in law

Indian Corn Farmers Pin Hopes On Local Poultry Feed Demand

Indian corn producers, after scoring virtually no major export deal for months, are counting on local chicken farms to absorb millions of tonnes of the grain as poultry output heads for yet another record year.

India, a key exporter of the grain to Asia, has struggled to find takers for its relatively expensive corn after global benchmark prices hit five-year lows late last year on record production in the United States and South America.

"No major corn export deal has been signed since October," according to Amit Sachdev, India Representative of the U.S. Grains Council, leaving grain with the producers.

Rising domestic orders for chicken feed will help soak up some of the grain, with poultry producers expected to increase corn consumption by around 10 percent this year, analysts say.

India's poultry output has been scaling yearly records as higher incomes boost demand for meat in the world's second-most populous country after China. India's broiler production will hit a fresh all-time high of 3.9 million tonnes in 2015, U.S. Department of Agriculture estimates published in October show.

"We expect to breed about 10 percent more chicken in 2015 from 2014," said Prasanna Pedgaonkar, deputy general manager at Venky's, an Indian chicken processing and product firm that also owns the English football club Blackburn Rovers.

The higher use of corn as feed would make up somewhat for weak exports that traders see easing by as much as 12 percent to 2.2-2.3 million tonnes in the year to September 2015.

Indian chicken farms will consume 10-10.5 million tonnes of local corn this year, up 1 million tonnes from 2014, according to Deepak Chavan, a commodity analyst with Agro Futures.

Major Indian corn exports have ground to a halt as buyers balk at the sizeable premium for Indian supplies.

Despite a 10 percent drop in Indian corn prices MAIZE-NZM-NCX to around $20 per 100 kg since August, export rates of $210-$220 a tonne, free on board, remain significantly higher than the $180-$190 quoted by the United States.

India usually attracts deals when it offers corn at a 5-6 percent discount to rival supplies. It is expected to produce around 22 million tonnes of corn this year, dealers said, down 10 percent from a year ago.

With export deals hard to come by, demand from the poultry sector is what corn farmers are now pinning their hopes on.

It is more feasible for poultry farms to source their corn locally as imported corn would be expensive after including freight charges and other transportation costs, traders said.

India's per capita chicken consumption is among the lowest at around 3.5 kilogram (kg) versus a global average of 11.6 kg, but that is fast changing due to new food consumption trends and a younger average age of the population, industry sources say.

Michelin-starred Indian chef Vikas Khanna said the age groups of 12 to 35 years order poultry the most, using his restaurant Junoon in New York as a case in point.

More than half of India's population is below 25 years and the average Indian age is set to be 29 in 5 years, a demographic that suggests poultry demand will continue rising.

Source:in.reuters.com

Payment made under IPR agreement was royalty as confidentiality clause would apply even after tenure

IT/ILT : Where the agreement refers to the tenure of five years unless it is terminated earlier, but the confidentiality obligation subsists and would be applicable even subsequently, lumpsum payment thereunder is "royalty" since what was conferred and granted was mere right to use or permission to use the intellectual rights and knowhow. The agreement postulated grant of permission to use or right to use intellectual property rights or knowhow and it is not a case of outright sale. It does not

Tea Export Volume, Value Decline

Tea exports declined in value and volume terms during January-November 2014, as compared to the same period in 2013, according to Union Commerce Ministry statistics.

Shipments dropped by 4.1 per cent to 185.68 million kg from 193.7 million kg during the period under reference. Earnings declined by 6.6 per cent to Rs.3,612.80 crore from Rs.3,866.90 crore. The unit price of Indian teas has dropped by 2.5 per cent. However, this seems to be part of a world trend in 2014.

Increased output by Kenya and Sri Lanka, two of India’s arch rivals in the international tea arena, and the domestic crop loss in some of the best tea producing months are reasons behind this performance, sources said.

Till November, official statistics pegged India tea crop at 1,126.9 million kg, which was 16.3 million kg lower than 2013.

Barring the sub-Himalayan terrains in North Bengal, tea production has declined across the country due to adverse weather conditions. Led by Assam (which gives 50 per cent of the crop), the output is lower in Darjeeling, Tamil Nadu and Kerala. Meanwhile, the Tea Board took a delegation of tea exporters to Russia on Monday. Coinciding with an industrial exhibition, the visit includes meetings with Russian agriculture department officials, customs authorities, and individual companies.

Tea-tasting in a mall and networking workshops over chai have also been scheduled by the Moscow office of the Tea Board. Valentines Day is proposed to be marked with India tea. Russia, a 200-million kg market, is India’s single-largest importer, buying about 35 million kg. But that too is under pressure.

Source:thehindu.com

India’S Oilmeal Exports To Iran Down By 70 Per Cent

India’s oilmeal exports to Iran have rerecorded a drop of 70.31 per cent at 322,091 tonnes during April 2014 to January 2015.

During the same period last year, Iran imports were at 1.08 million tonnes, the Solvent Extractors Association of India (SEAI) said in a statement. Import from Iran consists of 180,300 tonnes of soybean meal and 141,791 tonnes of rapeseed meal.

Similarly, during April 2014 to January 2015, oilmeal imports from Thailand were also down to 189,026 tonnes, as compared to 307,704 tonnes during the same period last year.

Import from Thailand included 181,762 tonnes of rapeseed meal and 7,264 tonnes of soybean meal. Taiwan imported 61,142 tonnes of oilmeals that includes 30,897 tonnes of rapeseed meal, 22,685 tonnes of castor meal and 7,560 tonnes of soybean, against compared to 104,824 tonnes imported during the last year.

Oilmeals import by South Korea from India during April 2014 to January 15 also reported a negative growth at 730,571 tonnes, as compared to 901,661 tonnes, consisting 426,874 tonnes of rapeseed meal, 301,639 tonnes of castor meal and 2,058 tonnes of soybean meal, SEAI adds.

However imports from Vietnam were up to 244,422 tonnes, against 183,236 tonnes imported during the same period last year.

Imports from Vietnam included 57,555 tonnes of rapeseed meal, 17,927 tonnes of soybean meal, 1,186 tonnes of groundnut meal and 167,754 tonnes of deoiled rice bran extraction.

Europe imported 208,911 tonnes of oilmeals, as compared to 533,418 tonnes of veg oil imported last year.

Kandla Port handled 71 per cent of export traffic at 1.44 million tonnes followed by Mumbai including JNPT ports handled 234,877 tonnes with 12 per cent, Kolkata port handled 195,486 tonnes with 10 per cent, Mundra port handled 79,177 tonnes with four per cent, Bedi port handled 32,197 tonnes with two per cent and Pipavav port handled 37,386 tonnes with the balance two per cent export oilmeal traffic.

Source:blackseagrain.net

Even misdeclaration of export goods due to mistake of labourers would attract confiscation, fine and

Excise & Customs : Even if export goods are mis-declared as a result of a mistake of labourers, since goods were mis-declared, a case for confiscation of goods was clearly made out and accordingly, levy of fine and penalty was justified

Import Duty On Indian Yarn Opposed

Value-added textile exporters are strongly opposing the proposal of 15 per cent duty on Indian yarn, saying the imported yarn is cheaper and allows them to be competitive with regional business rivals.

“Why are spinners demanding 15pc duty on Indian yarn now? We are still working in the free trade zone. In reality, the spindles have increased in the country and China has stopped importing yarn from Pakistan,” claimed Council of Loom Owners Chairman Waheed Khalid Ramay.

He said that in 2010-11, spinners exported billions of rupees worth yarn to China ignoring the local value-added and weaving sector.

“Owing to unbridled export to China, exporters and weaving unit owners had faced numerous problems and purchased yarn on exorbitant rates,” he added.

He said during peak exports to China, Pakistan’s value-added sector suffered immensely as the price of 40-single yarn had surged to Rs17,500. “However, now its price has come down to Rs13,000 per bag,” he added.

“Spinners are pushing for duty on Indian yarn. This would be against the spirit of free trade and also the interests of the value-added sector,” he said.

Talking to Dawn, Textile Minister Abbas Afridi said that it would be unwise to impose duty on Indian yarn without considering what kind of yarn is being sent to Pakistan. “India is also exporting the kind of yarn to Pakistan which is not being spun by our factories,” he added. Pakistan Yarn Merchants Association (PYMA) claims the quantity of Indian yarn dumping in Pakistan is increasing.

PYMA Central Chairman Qaisar Shamas said that in 2012, cotton yarn imported from India was 6,500 tonnes, surged to 30,000 tonnes in 2013 and now is touching about 36,000 tonnes.

Chairman Pakistan Apparel Forum, Muhammad Javed Bilwani told Dawn that they were not in favour of any duty on Indian yarn dumping.

He said the value-added sector had major share in the entire textile chain, however, only 30 spinning mills were raising hue and cry citing losses.

Faiq Jawed, a spinner and executive member of the All Pakistan Textile Mills Association, said government had been providing nothing to the spinning sector which is battling the energy crisis.

On the contrary, he said, the Indian government had been facilitating its entrepreneurs and earmarked Rs 42 billion for the yarn exporters to hit the Pakistani market.

He urged the government to devise a strategy focusing on the status of yarn production and its consumption.

Source:dawn.com

Tighten Norms In Export Deals, Rbi Tells Banks

The Reserve Bank of India (RBI) has directed banks to plug loopholes in export finance deals, especially when it comes to advance payments for yet-to-be-undertaken exports. The directive follows the Enforcement Directorate (ED) probe into the suspected misuse of up to Rs 20,000 crore in export advances paid out by a bank. It, however, made no mention of the UCO Bank, the only nationalised bank that deals with Indo-Iran trade.

The Reserve Bank of India (RBI) has directed banks to plug loopholes in export finance deals, especially when it comes to advance payments for yet-to-be-undertaken exports. The directive follows the Enforcement Directorate (ED) probe into the suspected misuse of up to Rs 20,000 crore in export advances paid out by a bank. It, however, made no mention of the UCO Bank, the only nationalised bank that deals with Indo-Iran trade.

"Banks should exercise due diligence and ensure compliance with KYC (know your customer) and AML (anti-money laundering) guidelines so that only bonafide export advances flow into India," the RBI said in a circular to banks on Monday.

It was first reported by dna on January 23 that the ED has been probing the multi-layered hawala scam under the Foreign Exchange Management Act, for three months now. While investigations so far pegged the scam at Rs 2,000 crore, ED now suspects it to be a much bigger scam at Rs 20,000 crore.

Recently, ED has taken details of accounts and transactions worth about Rs 800 crore from UCO bank. They also visited the regional branch offices of UCO Bank in Mumbai and Chandigarh and recorded statements of at least 5-6 bank officials a couple of months back.

As per the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000 the advances for exports, or for the re-export of goods imported into India, should be covered within 12 months by proof that an actual delivery is made.

"But the shipments, which included the purchase of textile or textile kind of goods for re-exports to Iran, were never made," said an ED source familiar with the investigation.

"Clearly, the activities were illegal and done with the sole purpose of money-laundering as there were no genuine transactions. All companies had the same address and there is apparently no business rationale for incorporating a large number of companies. Money trail up to 3-4 layers have been traced. Further beneficiaries are being identified," added the ED source.

According to sources, eight foreign nationals (seven Iranians and one from Azerbaijan) visited India on student visas, created bogus companies in Chandigarh and opened accounts with UCO Bank in probable collusion with lower-rung officials. Their sole purpose was to divert funds to Dubai and Iran.

They acquired companies in India with the help of an accountancy firm, Agarwal Raman & Associates, with the help of one UK Nair. They have their corporate office in Chandigarh. The accounting firm has since shut shop, post the transactions early last year. None of the key people from the firm nor the eight foreigners are traceable.

The exporters under ED lens are A&H general exports, True Exports Services, Connect Export traders, Centroid Exports (P) Ltd, Genius Exporters P Ltd, New Age Export Services, Star Elite Exports (P) Ltd and Elite World Trading.

"We are investigating all these companies which are actually bogus ones created for fake exports. They received funds in their UCO Bank accounts in Chandigarh and Mumbai, and 90 percent of the advance payment documents were fictitious," ED sources said.

India had expected exports to Iran to hit $6 billion in the fiscal, but in the first seven months of the year, they reached just $2.4 billion.

Source:dnaindia.com

For Cenvat refund under rule 5, 'export turnover' would include export of exempted services

Cenvat Credit : Even exempted export services were to be added to Export turnover and all unutilised credit was refundable and revenue's argument that 'unless foreign exchange is realized, amount pertaining to it cannot be considered as export turnover' cannot be accepted

Rupee Breaches 62 Mark On Corporate Dollar Demand

Tracking the Non Deliverable Forwards (NDF) market, the rupee opened weak in early trade today. Dollar demand by corporates ahead of the Budget also weighed on the rupee.

The rupee was quoting at 62.24 at 10:15 am against the dollar compared with its previous close of 62.20. The one month NDF forward was quoting at 62.50.

"There is a lot of dollar demand from corporates as they don't want to keep their near term exposures open ahead of the budget," said Sandeep Gonsalves, forex consultant at Mecklai & Mecklai.

The Union Budget will be announced later this month by Finance Minister Arun Jaitley.

Few currency experts feel that the rupee may even break the 62.50 mark ahead of the Budget, but the RBI may not allow it to weaken beyond that.

Source:business-standard.com

Sum paid as a pure agent of service recipient wasn't includible in value of services

Service Tax : Where assessee, a commission agent, acting on behalf of its principal, paid over amounts under Primary claim/Retail Scheme to various retailers selling products of its principal and later got reimbursement thereof, said amount was not includible in value of services

SC: Arbitrator couldn't decide upon issues specifically excluded from arbitration under the contract

Arbitration : Arbitrator cannot decide upon issues as to an excepted dispute not arbitrable in a contract of arbitration

In FOR sales, freight upto buyer's premises is included in excisable value

Excise & Customs : Where sale of excisable goods is on FoR destination basis and transit insurance is also taken by assessee in its name for safe transport of goods and ownership of goods remains with assessee up to place of delivery at buyers' premises, freight/insurance up to buyers' premises is includible in excisable value

Royalty payments allowed as revenue exp. couldn't be disallowed by making reassessment in Absence of

IT : Where assessee-company claimed royalty paid to its parent company as revenue expenditure and same was examined and accepted by Assessing Officer during original proceedings and no new fact was emerged from re-examination of existing document, re-opening of assessment could not be permitted

ITAT rightly rejected condonation plea due to parents demise as they died even before order was pass

IT : Where assessee's parents died even before passing order of Commissioner (Appeals), delay of 715 days in filing appeal before Tribunal could not be condoned

Services provided to SEZ are exempt; ST notifications have only operationalzed such exemption

Service Tax : As per SEZ Act and Rules, services supplied to SEZ are considered as deemed export and not liable to service tax; exemption notifications under service tax law merely operationalize said exemption and cannot be regarded as mandatory

No Sec. 234A interest on self-assessment tax paid before due date of filing of return; CBDT clarifie

IT/ILT : Section 234A of the Income-Tax Act, 1961 - Interest for Defaults in Furnishing Return of Income - Chargeability of Interest under Section 264A on Self-Assessment Tax Paid before Due Date of Filing of Return of Income

No filing of Form MGT-14 if amalgamation of Co. carried out by ordinary resolution in pursuance of a

CL: Where in case of amalgamation, compliance with provisions of Section 117 and filing of e-form MGT-14 to ROC were held not required

Mere non-registration of trademark won't disallow genuine payment of royalty by treating it as illeg

IT : Where assessee made payment of royalty to another company for use of its trade mark, merely because agreement between parties was not registered with trade mark authority, it could not be a ground to disallow payment in question

Timely service of sec. 143(2) notice is mandatory and not only a mere procedural requirement

IT : Service of notice under section 143(2) within time-limit prescribed is mandatory and it is not a mere procedural requirement

HC admits winding up of Co. as it admitted debt but failed to establish its counter claim against pe

CL : Where respondent-company admitted debt due to petitioner several times and failed to establish its counter claim against petitioner, winding up petition filed by petitioner as creditor was maintainable

HC allowed assessee to contest compounding proceedings on merits as it showed sufficient docs to est

CST & VAT : Tamil Nadu VAT - Where Check Post Officer had detained goods under transport and subsequently he issued on consignor a notice for composition of offence under section 72(1)(a), consignor was to be granted an opportunity to contest matter on merits

ITAT directs TPO to verify calculations of mean margin of comparables as per which ALP was within to

IT/ILT: Matter was to be reconsidered afresh when assessee raised a plea that if, according to subsequent calculations of Assessing Officer rectified mean margin of comparable was taken against assessee's profit margin, then ALP would be within safe harbour of +/-5 per cent

Fee charged for late filing of TDS return isn't a tax; HC upholds constitutional validity of sec. 23

IT : Section 234E of the Income Tax Act, 1961 does not violate any provision of the Constitution and is therefore intra vires, Constitution of India. The fee sought to be levied under section 234E of the Income Tax Act, 1961 is not in the guise of a tax that is sought to be levied on the deductor. The provisions of section 234E is not onerous on the ground that the section does not empower the Assessing Officer to condone the delay in late filing of the TDS return/statements, or that no appeal i

Indian Diesel Cargoes Head To Australia In Rare Move: Traders

Indian diesel cargoes are being shipped to Australia in a rare move as rising competition from new Middle East refineries has made it more difficult to land the fuel in India's core traditional markets in Europe and Africa.

Diesel is typically shipped to Australia from North Asia or Singapore as freight rates for the India-Australia route can cost as much as 50 per cent more, traders and shipbrokers said.

Yet several vessels have been chartered on the higher-priced route since late last year, the traders and brokers said.

Chevron, for instance, has been moving 1-2 cargoes a month to Australia from private Indian refiner Reliance Industries' facility at Jamnagar port on the west coast of India, traders said.

The Jupiter Express left Jamnagar on Feb. 7 and is on its way to Botany Bay in Sydney, Australia, carrying 35,000 tonnes of clean oil products that could be either gasoline or diesel, shiptracking data on Reuters shows.

The Ocean Pluto, a 35,000-tonne clean product tanker, left Jamnagar on Jan. 18 and arrived on Feb. 9 in Adelaide, South Australia.

Officials at Chevron and Reliance have declined to comment.

As refining capacity expands in the Middle East, India and China, imports of oil products such as diesel and gasoline into Australia have become more attractive.

Australia turned into Asia-Pacific's top diesel importer after the closure of several ageing refineries, with global oil traders such as Vitol and Trafigura's Puma subsidiary snapping up petrol stations, storage tanks and terminals to manage tanker arrivals and distribution.

"Freight-wise, it's cheaper to ship from the Middle East to (Europe), so I think the most pressure is on the Indian private refiners," a Singapore-based middle distillates trader said.

Australia imports about 770,000 to 875,000 tonnes of diesel a month, with the volume set to rise from mid-2015 when BP

halts operations at its 102,000 barrels-per-day Bulwer Island refinery in Brisbane, Queensland.

Oil giant Saudi Aramco, which has been a major term buyer of diesel from Reliance in India, reduced its import requirements for this year, one trader said. This could also be placing pressure on Reliance to explore new markets to sell excess cargoes in Australia.

Source:economictimes.indiatimes.com

No addition in block assessment if no incriminating material was found during search

IT : Where in course of proceedings under section 153C no incriminating material was found in respect of gift received by assessee and, moreover, said amount had already been considered in regular assessment, impugned addition made in respect of same deserved to be deleted

No TP adjustment of Import if proportion of certification of import value was high for transaction w

IT/ILT : Where value for import of capital goods, tools and spares covered 93 per cent of total aggregated value of import transactions and third party CUP (international CUP) analysis for same would cover 75 per cent of total aggregated value of such transactions, no adjustment could be made

Daimler Buses India Exports First Bus Chassis To Egypt

Hartmut Schick, Head of Daimler Buses, and Markus Villinger, Head of Daimler Buses India were in Cairo to celebrate the first bus chassis delivered to long-time business partner, MCV. MCV will equip the 9-tonne bus chassis’ with bodies in Cairo. Finished vehicles will be sold as Mercedes-Benz-brand buses through MCV’s sales network. Export of bus chassis from India to Egypt demonstrates how Daimler is successfully exploiting its global presence, says Hartmut Schick, Head of Daimler Buses. A global production network ensures appropriate and competitive products for every market.

Karim Ghabbour, Founder and Managing Director of MCV is certain the chassis from India will ensure high quality buses, and expand product range with a high-performance vehicle to be offered at attractive terms.

The OF 9t bus chassis with front-mounted engines are manufactured at Daimler India Commercial Vehicles (DICV) plant in Chennai, and exported to Egypt. In tech terms, the chassis are similar to those used in medium-duty BharatBenz trucks also made at the DICV plant. Resultantly, Daimler could begin exports before the bus plant is completed.

Daimler’s chassis from India is especially modified for use in buses. The competitive, high-quality products are testimony to a high degree of localisation. Daimler Buses is able to offer vehicles in previously unexploited segments of the Egyptian bus market. Daimler Buses India will add more export markets in its sales network.

DICV bus plant construction is ongoing at an investment of about €50 million. Work began in March 2014, and Daimler Buses India expects to begin Mercedes-Benz and BharatBenz bus production here at the end of Q2 2015. Initial installed capacity stands at 1,500 vehicles per year, to be expanded to 4,000 units in time at the 113,000 sq mts Daimler Buses India plant within DICV premises. This is the only Daimler plant to produce trucks, buses, and engines for three brands.

Source:rushlane.com

Import Duty Leaves India's Scrap Industry 'Bleeding'

The Metal Recycling Association of India (MRAI) has urged the country's government to remove the import tax on steel scrap. Levied two years ago, the duty is having a damaging effect on the business, it was stressed at the organisation's second international conference held last week in Mumbai.

India has signed free trade agreements with a number of countries. But whereas semi-finished products can be imported duty free into the country, there is a 5% import duty on steel scrap. India is the only country in the world to have such an import tax and, as a consequence, recyclers are struggling with profitability. 'Many recycling operations are bleeding,' confirmed MRAI's president Ikbal Nathani of the Nathani Group of Companies.

And according to a Frost & Sullivan report, Indian steelmakers are losing substantial export business to competitors such as China and Taiwan as a result of the import duty. Government intervention to remove the duty will reduce the cost of secondary steel production, recyclers say.

India's annual scrap consumption is 20.4 million tonnes while its imports amount to 6.5 million tonnes per year, making it the world’s third-largest importer of scrap. India's metal recycling industry has the potential to grow 11.4% per year until 2020 - but only once the import duty and other free trade hurdles have been removed, it is argued.

India's minister of state for steel Vishu Deo Sai, who attended the MRAI conference as a special guest, confirmed to Recycling International that he will do his 'utmost to help save' the country's metal recycling industry. He promised recyclers that he will 'recommend' removal of the 5% import tax to the Indian government, which will shortly settle its new financial budget.

Source:recyclinginternational.com

India’S Trade Ministry Seeks Cut In Gold Import Tax

India’s Trade Ministry has sought a sharp cut in the import tax on gold, a top official said Monday, to help reduce costs for gems and jewelry exporters who rely on the metal as a raw material for their products.

The Trade Ministry has asked the Finance Ministry, which will decide on the proposal, to reduce the tax to 2% from 10%, the official told The Wall Street Journal. The Finance Ministry’s decision will become clear in the federal budget to be presented in Parliament on Feb. 28.

Gems and jewelry accounted for about 13% of India’s exports in the fiscal year ended last March. The sector has been hurt by a sharp increase in the tax over the past few years as the government clamped down on gold imports to control a growing current-account deficit and stabilize the rupee. The tax rate was at 2% in early 2012.

Raising the tax helped almost halve India’s gold imports to 287 billion rupees ($4.7 billion) last fiscal year, while the current-account gap declined to $45 billion from $88 billion the year before.

“We are hopeful the import duty will be cut as current-account deficit is fairly under control now,” the official said.

Lowering the tax would also check smuggling of gold and increase government revenue, said Harish Soni, chairman of the All India Gems and Jewelry Trade Federation.

Source:wsj.com

Rupee Gains On Large Dollar Inflows; Rbi Eyed

The rupee gains sharply on dollar selling by a large engineering firm. Traders say large private sector bank also seen selling greenback.

The Indian unit is trading at 61.96/97 per dollar versus its Monday's close of 62.1650/1750.The rupee can gain up to a maximum of 61.88 during session - traders.

The market is watchful of central bank stepping in to buy greenback to prevent further gains in local unit. Gains in domestic share market also boost sentiment for the unit; Nifty <.NSEI> is up 0.8 pct.

Source:business-standard.com

HC admits winding of Co. as it made bogus claim about poor quality of goods after issuance of statut

CL : Where company raised defence as regards inferior quality of goods supplied after issuance of statutory notice and failed to prove same, winding up against company was to be admitted

HC quashed ex-parte order of Tribunal as there was no malafide intention of assessee to remain absen

IT : In absence malafide intention on part of assessee to remain absent at time of hearing of appeal, impugned order passed by Tribunal dismissing assessee's appeal ex parte was to be set aside after imposing reasonable cost upon assessee

Delay was not condonable when assessee had adopted dilatory tactics to delay adjudication process

Excise & Customs : Where assessee did not participate into adjudication proceedings even after being granted various opportunities and did not even file a reply to show-cause notice, and acted with a defiant intention to delay process of adjudication and recovery; in that case, delay in filing appeal could not be regarded as bona fide and could not, therefore, be condoned

Banks to ensure that only bona-fide export advances flow into India by exercising proper due diligen

FEMA/ILT : Delay in Utilization of Advance Received for Exports

No concealment penalty on surrender of income during survey if assessee had no intention to evade ta

IT : Where survey did not result in recovery of any specific amount and figures were arrived at by way of presumptive computation, there being no intention to evade tax, no penalty was to be levied under section 271(1)(c)

HC directs Chief CIT to reconsider request for waiver of sec. 234C interest after duly considering C

IT : Matter remanded for fresh consideration where Chief Commissioner did not properly consider assessee's claim for waiver of interest under section 234C

Facility of maintaining an effluent treatment plant by co-operative society for its members wasn't l

Service Tax : Since section 65(25aa) has been declared unconstitutional in Sports Club of Gujarat Ltd. v. Union of India [2013] 35 taxmann.com 557 (Guj.), levy of service tax on a co-operative society providing facility of maintaining a common effluent treatment plant to its members, is invalid

Receipts from capacity 'sale' of telecom cable link with transfer of ownership isn't taxable as 'roy

IT/ILT : In case of 'royalty', the complete ownership in the equipment is never transferred to the other party. What is envisaged in section 9(1)(vi) read with Explanation thereto, is consideration for use or rights to use of any equipment. Where consideration is received by foreign company from Indian Co. for sale of capacity involving transfer of ownership of cable system to Indian company as distinguished from a mere payment for simply user of capacity, the consideration is not taxable as roy

Transfer of rights in land takes place when developer takes its possession and initiates development

IT : Where developer took possession of assessee's land and started development work, said transaction was to be treated as transfer of right in property covered under section 2(47)(v)

Unaccounted stock found during survey, prior to search, couldn't become subject matter of block proc

IT : Where certain unaccounted stock was noticed in survey commenced prior to search, could not be subject matter of block assessment proceedings

CBDT takes prompt action in investigating cases of black money stashed abroad; seeks further info in

IT/ILT : Section 276C, Read with Section 276D of the Income-Tax Act, 1961 - Wilful Attempt to Evade Tax, Etc. - Vigorous and Pro-Active Measures Taken by Income-Tax Department to Expedite Investigations in Cases of Indians Holding Undisclosed Foreign Accounts/assets Abroad

Plastic Crates used for internal movement of goods within factory are eligible for credit as capital

Cenvat Credit : 'Plastic crates' used to carry intermediate goods from one section to another for further processing is eligible for credit as 'capital goods', being 'accessories' to machineries