CA Terminal

Tuesday, 27 October 2015

No accrual of income if its payment was deferred prior to closing of previous year

IT: Where trade mark and marketing assistance fee payable by a company to assessee was deferred by assessee prior to closing of accounting year, fee did not accrue in relevant year

Monday, 26 October 2015

Terra Group isn't dominant player of real estate in Bhiwadi in presence of Omaxe and Bhart Bhumi Bui

Competition Act: Where there were large players such as Omaxe Ltd. in relevant market for provision of services of development and sale of residential plot in Bhiwadi and its nearby areas, OP was not dominant in relevant market and, therefore, had not abused its dominant position by demanding additional payment from informant-allottee

No TP adjustment on pretext of outstanding receivables when working capital adjustment is already ma

IT/ILT : Where in transaction with AEs, assessee earn significantly higher margin than comparable companies and such higher margin compensates for credit period extended to AEs no further TP adjustment was required

Exemption available on payment of duty in cash isn't available if duty paid by use of credit

Excise & Customs : Where partial exemption is conditional upon payment of duty in cash without use of credit, said exemption has to be construed strictly and cannot, therefore, be extended to assessee paying concessional duty using credit balance

No disallowance of contribution to PF just because PF wasn't recognized by Jurisdictional CIT

IT : Contribution made by assessee in pension fund could not be disallowed on ground that same was not recognised by Jurisdictional Commissioner, as under section 36(1)(iv) it is nowhere mentioned that pension fund should be recognised only by Jurisdictional Commissioner and that approval of Jurisdictional Commissioner is mandatory

No ST if entire consideration for immovable property is received after issue of occupancy certificat

SECTION 65B(44) OF THE FINANCE ACT, 1994 – SERVICE - MERE TRANSFER OF TITLE IN IMMOVABLE PROPERTY IS EXEMPTED FROM SERVICE TAX

Cbec Redefines Import Value Of Capital Goods

The Central Board of Excise and Customs (CBEC) has revised its 2008 guidelines for determining the value of imported second-hand capital goods, for the purpose of charging duty. Its circular (No. 25 of October 15) first affirms a fundamental proposition in customs valuation law, that where used second-hand machinery is exported to India and the sale meets all the requirements in the Customs Valuation Rules of 2007 (CVR-2007), the price paid or payable will be the basis for determining the assessable value. However, the circular goes on to undermine that basic mandate.

Section 14 of the Customs Act, 1962, gives primacy to the transaction value i.e., the price paid or payable for imported goods. Rule 12 of CVR-2007 has some criteria for doubting a transaction value declared by an importer and for rejecting it. CBEC now adds its own criteria for rejection of the transaction value, by prescribing comparison of the declared value with that determined on the basis of a chartered engineer's certificate.

CBEC says the value declared by an importer shall be examined with respect to the report of a chartered engineer and the depreciated value of the goods, determined in terms of circular No. 493/124/86-Cus VI dated November 11, 1987, and one of January 4, 1988. If this comparison does not create any doubt on what is declared, these may be accepted. If there are significant differences arising from such a comparison, the officer concerned shall seek an explanation from the importer to justify the declared value. The officer will determine if the declared value may be accepted. If rejected, the value is to be determined in terms of rules 4 to 9 of CVR-2007, says CBEC. These instructions are not very different from its earlier circulars.

The latest circular also says inspection/appraisal reports by a chartered engineer or equivalent, based in the country of sale of the second-hand machinery, must be accepted by Customs. It prescribes the format in which these reports shall be prepared.

If an importer does not produce this report in the prescribed format from the country of sale, he might engage the services of inspection agencies as in the Handbook of Procedures, Vol. 1 (HB-1), notified by the Directorate General of Foreign Trade.

In case the agencies notified in HB-1 are not available at the port of import, the importers will be free to select any chartered engineer from those empanelled by the Customs House at the port. The circular prescribes the format of the certificate to be obtained from the agencies in India.

What CBEC has done is to relegate to the background the primacy in law given to the transaction value. Instead, it gives primacy to the depreciation method prescribed by it, a method upheld in some judgements. Importers have to comply with the circular, no matter how genuine their transactions with suppliers.

Source:- business-standard.com

Ludhiana Inc Hails Centre's New Duty On Import Of Auto Parts

Industrialists have welcomed the Centre's move to impose an anti-dumping duty on some auto parts being imported from China. However, at the same time, they have said that more steps are needed for the country to realize its 'Make in India' ambitions.

An anti-dumping duty of $0.35 to $1.11/kilogram has been imposed on front axle beam and steering knuckles for medium and heavy commercial vehicles. These are used in all vehicles with more than four or more wheels.

Terming it a good step, Focal Point Industrial Sheds Association president Rajneesh Ahuja said this would not only help auto parts' manufacturing industry, but also other industries.

However, he said that there is a need for more steps for helping the industry "First of all, one has to understand why China is giving cheaper products. The term loan on machinery there is 4%. In our country, it is 14%. This should be reduced. Similar is the case with working capital interest, which is higher in India. These are reasons why we don't have a level-playing field against other countries," Ahuja said.

He added that the industry should be made competent enough to deal with the situation on its own, so that there is no need for anti-dumping duty and other such steps.

Auto Parts Manufacturers' Association president Gurpargat Singh Kahlon also hailed the step and that there was a need for this to save the industry, which is "bleeding white in competition by the much cheaper products from China". "I just hope the government would take more such steps and adopt a multi-pronged policy to help the industry compete internationally, especially with China. If at all Make in India has to be turned into a reality, the government has to help manufacturers and slash interest rates," he added.

Source:- timesofindia.indiatimes.com

India's Electronic Imports May Exceed Overseas Purchases Of Bullion

India’s electronic imports could exceed the overseas purchases of bullion for the first time this year thanks to an increase in the import of smartphones. Estimates based on government data showed that the import of electronics surpassed those of gold and silver in the first six months of the current financial year.

"There is bigger concern as real electronic imports are much more than what is captured. Electronic components of cars such as electronic gears are still not counted, else these would take the import figure to a much higher level," said Ajay Sahai, director general of the Federation of Indian Export Organisations

India is one of the fastest growing consumers of electronics globally. Domestic production of electronic goods was $31 billion during 2014-15. Electronic imports grew from $2.85 billion in May to $4.38 billion in September. This growth was led by a sharp rise in purchases of integrated chips, personal computers, and more. In April-August, mobile phone imports were pegged at $2.4 billion. The import of such large quantities of electronics questions the success of the government's target of ‘net zero imports’. It also highlights the need to direct the focus of the Make in India initiative on the electronics sector.

Director of Ahuja Radios, Suresh Madan said, “The government talks of 'Make in India' but there is no change in labour laws or improvement in transportation and power availability that can encourage small and medium enterprises, which value add to imported goods to the order of 400-500 per cent.” He also cited the removal of a 2 per cent incentive for electronic hardware exports to the EU, the US, and India’s neighbours as the reason why his company’s overseas sales contracted by 35 per cent in the past six month. India sells $1.8 billion worth of components abroad with Europe being the top destination. The industry also criticises the inverted duty structure that hinders domestic manufacturing. For example, the import of microphones has zero duty, but its components attract a duty of 7.5 - 10 per cent.

Source: ET Retail

Ge’S India Unit To Export Med Equipments To Africa, Asean

GE Healthcare’s affordable range of medical technology products manufactured in India will soon be exported to Africa and Asean countries. The low-cost medical equipments have already garnered sales of $260 million for the company.

India is a key manufacturer of GE’s affordable solutions as part of its newly formed business unit - Sustainable Healthcare Solutions. The three manufacturing facilities in Bangalore produce medical technology products, majority of which is currently consumed by the country. Some are exported to neighbouring south Asian countries.

The scope of the business unit is being expanded to cover Africa and Asean countries. According to Terri Bresenham, president and CEO of GE Healthcare, India, Africa and Asean, $260 million sales from the segment will grow in double-digits in the future. In India, the tier II, III and smaller towns account for 60 per cent sales of affordable equipments, while metros and tier I cities account for the rest.

“India is important in terms of affordable healthcare. The market demands products of high clinical quality, which can stand heavy patient load and work robust in conditions where there are problems like power fluctuations. The tough situation makes it a great place to design and develop products for the developing markets. What works here will work anywhere in the world,” she said.

The company has developed 17 products, including x-rays, monitoring systems, ultrasound scans and magnetic resonance systems. The target is to develop 100 products and the company will be spending $300 million in five years.

Despite the inverted duty structure in the medical technology space, GE finds India to be a key manufacturing hub due to its skill sets.

“In other countries, the government ensures availability of suppliers for medical technology producers. Making components available is a problem due to the inverted duty structure in India, but the country has skills and medical fraternity that can help us in designing products,” said Bresenham.

The company is also evaluating ways to increase production capacity. Currently it has enough room to increase production in the existing facilities. By next year it will take a call on expanding the capacity of existing facilities or setting up new facility.

Source:- mydigitalfc.com

India's Dairy Products Export Seen Flat At 30K In 2016: Usda

India's dairy products (non-fat dry milk) exports are projected to remain flat at 30,000 tonnes next year on expectations of high global supplies and low prices, according to a latest USDA report.

The country's milk output may increase by 4.8 per cent to 154 million tonnes assuming a normal monsoon in 2016, while domestic consumption of milk is forecast to rise by 5 per cent to 62.75 million tonnes in the same period, the US department of Agriculture (USDA) said.

"Overall dairy exports (from India) are minimal due to high domestic consumption. CY 2016 non-fat dry milk (NFDM) exports are projected to be flat at 30,000 tonnes due to uncompetitive export prices," USDA said in its report.

High global supplies are expected to keep international prices low, it said.

Due to slow export pace, the country's non-fat dry milk (NFDM) export are revised down to 30,000 tonnes for 2015.

India, the world's largest milk producer, generally exports NFDM to milk-deficient countries including Bangladesh, Pakistan, Nepal, Bhutan, the UAE, and Afghanistan.

The country also exports smaller volumes of casein, butter and other dairy products to neighbouring countries.

According to the USDA, India's fluid milk production is estimated to increase by 4.8 per cent to 154 million tonnes next year assuming a normal monsoon.

The combined buffer and ghee output is estimated to rise by 3 per cent to 5.2 million tonnes in 2016 on rising domestic demand due to population growth and demographic shifts.

The domestic milk consumption is also estimated to rise by 5 per cent to 62.75 million tonnes on population growth in the said period, it added.

USDA said that due to rising incomes, urbanisation and other demographic shifts, demand has increased for more value-added dairy products.

Cooperatives and private sector dairies are producing more dairy products to meet this demand, such as milk powder, butter, ghee, paneer, flavored milk, ice cream, cheese, yogurt and ethnic sweet, it added.

Source:- timesofindia.indiatimes.com

Benefit of payment of 8% amount for using ethyl alcohol in manufacturing wasn't available after 1-3-

CENVAT : On or after 1-3-2002 vide amended clause (a) of Rule 6(3), certain goods such as ethyl alcohol, etc. were excluded from benefit of scheme of tax payment of 8 per cent

Addition made on jeweller as he failed to substantiate unaccounted stock of gold found during survey

IT: Where Assessing Officer made certain addition to income of assessee on account of excess stock of gold found at its business premises during survey, since assessee failed to prove source of acquisition of said gold, impugned addition was justified

Co. developing own software products isn't comparable with a software service provider

IT/ILT: Companies which are on similar standards to assessee can only be taken as comparables, thus a company having turnover in excess of Rs. 200 crores engaged in provision of software services, BPO services and which had also developed its own software products was not comparable to assessee, who was a mere software service provider to its AE having turnover of only Rs. 11.32 crores

No denial of sec. 80-IB relief if completion certificate was delayed by Municipal Authority

IT: Where assessee-builder undertook a housing project which was completed on time and an application was moved in time for seeking completion certificate from Municipal Authority but same was issued to assessee with delay, that delay could not be attributed to assessee and assessee was entitled to exemption under section 80-IB(10)

Interference with valuation was unwarranted as valuer wasn't related to transferee co.: HC

: Where valuer was neither related to transferee company nor same was statutory auditor/tax auditor/tax consultant of transferee company or its major shareholders, no interference with valuation was warranted and there was no need for appointing an independent valuer

Issue related to clubbing of turnovers for SSI-exemption must be decided on basis of fact

Excise & Customs : Where issue of clubbing of turnover under SSI-exemption as well as issue of invocability of extended period was decided without examining facts and grounds, matter was to be remanded back to Tribunal for consideration afresh

ITAT refused to invoke LOB clause of India-UAE treaty as shipping Co. wasn’t a conduit Co. in UAE

IT/ILT : Shipping company in UAE could not be said to have been created for the purpose of availing India-UAE tax treaty benefits on the ground that such company was owned by shareholders in Switzerland when treaty protection in respect of income of such a nature was anyway available under India-Swiss tax treaty

Paying duty at lower rate attracts extended period if assessee undertook to pay duty at higher rate

Excise & Customs : Where, after filing undertaking that duty would be paid at higher rate under classification approved by revenue, assessee's act in paying duty at lower rate under different classification amounted to "misstatement" and therefore, extended period of limitation was invocable

Monetary limit to file an appeal before Tribunal would also apply to pending cases

IT : CBDT Instruction No. 5 of 2014 revising monetary limit to Rs. 4 lakhs for filing appeal before Tribunal apply to pending appeals also

Expenses incurred on shuttering, centering, scaffolding to construct bridges are allowable exp. as u

IT: Expenditure incurred on constructing temporary accommodation at construction site was to be allowed

President of Tribunal can refer matter to more than one member if case of divergent opinions

Service Tax : In case of difference of opinion, President of Tribunal can refer matter to one or more of other Members and not necessarily a single third member; hence, difference of opinion relating to credit of telecom towers in Idea Mobile's case (along with these matters) was referred to Larger Bench of Tribunal

SLP granted as High Court hadn't cancelled registration of trust even when trustees were embezzling

IT : SLP granted against High Court's ruling that where assessee-trust was fulfilling its main object of imparting education, registration of trust could not be cancelled only on basis that trustees were misappropriating funds of said trust

Interest on foreign currency loan given to AE should be benchmarked as per LIBOR

IT/ILT : It is LIBOR which has to be applied in case of foreign currency loan given by assessee to its AE

IRDA notifies norms on establishment of 'common service centres' for insurance services

INSURANCE/INDIAN ACTS & RULES : IRDAI (Insurance Services by Common Service Centres) Regulations, 2015

Issue related to clubbing of turnovers for SSI-exemption must be decided on basis of facts

Production of backdated completion certificate won't allow sec. 80-IB deduction

IT: Where completion certificate of housing project of assessee was issued after cut off date by Local Authority but mentioned date of completion of project before cut off date, same could not fulfil condition specified in section 80-IB (10)(a) read with explanation (ii) thereunder and assessee was not entitled to deduction under section 80-IB (10)(a)

Sunday, 25 October 2015

Oppression plea filed by petitioner who was neither member nor was holding shares of co. wasn't main

CL: Where petitioner who had filed petition under sections 397 and 398 was not a member of company and was not holding any shares, petitioner had not fulfilled criteria as enumerated in section 399 and, therefore, petition was not maintainable

Refund of duty paid on material which is used in export goods should be claimed within 1 year

CENVAT : Application for refund claim of CENVAT Credit under Rule 5 should be filed before expiry of one year

SLP dismissed against HC's order which held that losses already set-off not to be considered for sec

IT : SLP dismissed on account of low tax effect against High Court's ruling that loss incurred by industrial undertaking claiming deduction under section 80-I which has already been set-off cannot be notionally carried forward and set-off against profit generated by industrial undertaking during relevant assessment year

A KPO co. can't be chosen as comparable for co. providing ITES

IT/ILT : An otherwise comparable company cannot be excluded on strength of high or low turnover

Saturday, 24 October 2015

Govt. notifies norms for recruitment of Additional director in fraud investigation office of MCA

COMPANIES ACT, 2013/INDIAN ACTS & RULES : Ministry Of Corporate Affairs, Serious Fraud Investigation Office, Additional Director (Capital Market)/Joint Director (Capital Market) And Additional Director (Financial Transactions)/Joint Director (Financial Transactions) Group 'A' Post Recruitment Rules, 2015

Delhi HC denies to interfere with de-merger of CA firm approved by ICAI

CL : Where de-merger of CA firm met the rules of merger/de-merger and satisfied criteria laid down by Council of ICAI, writ plea filed by petitioner-CA for quashing the de-merger of CA firm was to be quashed

Income of CA from shares trading wasn’t business income as revenue failed to prove it as regular act

IT : Where trading in shares by assessee - CA was not his regular business activity and income therefrom was treated as capital gain by revenue in preceding assessment years, same could not be treated as business income in relevant years on same facts and circumstances

Food cooked in restaurant classifiable as branded food if trade mark of restaurant is registered

CST & VAT: Tamil Nadu VAT - Where assessee, a restaurant, got registration under Trade Marks Act of name Zaitoon, in view of provisions of Trade Marks Act as well as Rules thereof, trade mark registration was meant for restaurant as well as goods manufactured by assessee and, therefore, food items prepared and served by assessee were branded foods taxable at 14.5 per cent

Money held in saving account on behalf of employer couldn't be held as unexplained

IT : Where assessee deposited certain sum in her bank accounts and explained that said amounts belonged to her employer company J, as assessee filed all details and books of account of J, bank statement, etc., first time before Tribunal, matter was to be readjudicated for detailed examination

"Council for Leather Exports" promoting export of leather and leather products is a charitable insti

IT : "Council for Leather Exports" promoting export of leather and leather products is a charitable institution

Depreciation on enhanced cost of asset after withdrawal of Govt. grant has to be computed from year

IT : Depreciation on enhanced cost of equipment due to grant withdrawn by CDEC was to be computed from year of withdraw

Joint committee's new report on GST prohibits revised return

ST : Report Of Joint Committee On Business Process For Gst On Gst Return

Duty is payable on combined MRP where goods subjected to MRP valuation are sold in combipack

Central Excise : Where 'face wash gel' was supplied free with 'Dandruff Shampoo' bound together with a sticker label and both products were covered under section 4A of Excise Act, payment of duty on basis of combined MRP is valid

Sec. 234E- levying fee for default in filing of TDS return isn't unconstitutional: P&H High Court

IT : Section 234E(Fee for defaults in furnishing TDS statements) is neither ultra vires nor unconstitutional . Section 234E is not punitive and is in the nature of fees and not a tax. It is levied as a fixed charge for extra services which are provided by the Department to the deductee in the form of extra work of revising deductee's assessment when deductor defaults in timely filing of TDS statements

Where assessee had plenty of own funds it would be presumed that advances were made out of own funds

IT: Where assessee had enough interest-free funds to advance interest-free sums to its sister concern, presumption would be that advances were out of interest-free funds and, therefore, interest expenses could not be disallowed under section 36(1)(iii)

CLB junks frivolous tactics of applicant to inspect records of co. by acquiring miniscule shares

CL: Where applicant filed frivolous application seeking inspection of statutory register and records of company by acquiring miniscule shares though statutory records of company were available on MCA portal and were open for inspection, application was to be dismissed

Appealibility of order of Comm (A) on issue of 'rebate of duty paid goods supplied to SEZ' referred

Service Tax : Issue whether order of Commissioner (Appeals) relating to 'rebate of duty paid on goods supplied to SEZ' is appealable before Tribunal or not, referred to Larger Bench of Tribunal

Supply to high seas vessel is liable to VAT if territorial connection exist in the State: Mumbai HC

CST &VAT: Maharashtra VAT- For levying tax it was not necessary that the sale should take place within the territorial limits of the State. The tax could be levied if all the ingredients of sale like the agreement to sale, the passing of title, delivery of goods have a territorial connection. In the instant case the goods were manufactured or refined within the State and the assessee was situated at Mumbai, thus, it means that place of business of assessee was in Mumbai. Therefore, there was

Carrying out printing work on paper makes it product of printing industry

Excise & Customs : Where assessee had merely carried out printing work on imported paper, assessee's product was classifiable as 'Products of printing industry' under heading 49.01 and not as 'Paper. . . printed in sheets' under heading 48.11

Co. having drastic fluctuation in operating margins is excludible from list of comparable for TP stu

IT/ILT : Where there is drastic fluctuation in operating margins of a company with extreme high in one year and extreme low in other year, said company be excluded from comparable list

Buyer couldn't be penalized when he was unaware of fact that supplier had disclosed lesser value of

Excise & Customs : Where suppliers were disclosing lesser value and said fact was not known to assessee, assessee cannot be faulted for disclosing value of its products based on price shown by suppliers; hence, extended period cannot be invoked against assessee

Assessee couldn't sought rectification where findings of AO were susceptible to an appeal

IT : Where findings entered by Assessing Officer were based clearly on facts which were susceptible to an appeal, assessee was unjustified in invoking section 154 as same had nothing to do with rectification of any mistake apparent from record

SEBI constitutes additional departments for regulating commodity derivatives market

SEBI : Regulation Of Commodity Derivatives Market

Friday, 23 October 2015

Govt. raised monetary limits for arrest and prosecution under Excise and Service-tax

ST/EXCISE : Revised Monetary Limits For Launching Prosecution Under Central Excise Act, 1944 And Finance Act, 1994

Govt. unveils consolidated guidelines for prosecution under Excise and Service-tax

ST/EXCISE : Consolidated Guidelines For Launching Prosecution Under Central Excise Act, 1944 And Finance Act, 1994

On failing to provide sufficient reason for waiver of deposit fee, DRAT's order to deposit 50% fee w

RDDBFI Act : For ordering waiver or reduction of amount to be deposited under section 21 of RDB Act, sufficient/special reasons/necessary materials ought to be placed before Appellate Tribunal ; no such grounds having been made by petitioner, order of DRAT directing petitioner to deposit 50 per cent of amount due to bank was justified

Case can't be reopened solely on basis of audit objections, says Gujarat HC

Delhi HC examines test of "related party" for deciding maintainability of application before SetCom

IT : A company would not qualify as "related party" of specified person for making application to Settlement Commission merely because one of its directors has a substantial interest in the specified person

DRP should consider every point of dispute and pass speaking order, says Chennai ITAT

IT/ILT: DRP should consider every point of dispute and pass a speaking order and should not merely uphold order of TPO

Sum paid to forest department to carry on mining business over forest land is revenue exp.

IT : Net present value paid by assessee-company to Forest Department to enable assessee to carry on its mining business on forest land was revenue in nature

No depreciation on asset if its consideration is paid by taking over liability of purchaser

IT: Where assessee acquired fixed assets like land, building and also plant and machinery by paying price partly in cash and partly by way of taking over accrued liability in respect of gratuity and leave salary payable to workers, no depreciation could be allowed in respect of such accrued liability

Last date for filing of Form DP-1 of DVAT further extended to Nov 23, 2015

VAT/DELHI/NOTIFICATION : Submission of information online in Form DP-1 – Amendment in notification No.F.3(352)/Policy/VAT/2013/818-829, dated 30-9-2015

Govt. requires Coal miners to make contribution to 'District Mineral Fund'

CORPORATE LAWS/INDIAN ACTS & RULES : Mines and Minerals (Contribution to District Mineral Foundation) Rules, 2015

Sec. 35(2AB) nowhere suggests that purchased machinery should be installed before expiry of previous

IT: In case of allowance of weighted deduction, provision of section 35(2AB) nowhere suggests or implies that machinery is required to be installed and commissioned before expiry of relevant previous year

Sec. 35(2AB) nowhere suggests that purchased machinery should be installed before expiry of previous

No reassessment for disallowing excess claim of depreciation if AO had such details during assessmen

IT: Where information regarding assessee's claim of enhanced depreciation in view of re-estimation of written down value of its assets over remaining useful life was with Assessing Officer at time of passing assessment order, reopening of assessment beyond four years from relevant assessment year on ground that claim of additional depreciation had reduced book profit under section 115JB was without jurisdiction

ITAT allows 50% road leveling charges incurred by real estate agent to sell property

IT: Provisions of section 40(a)(ia) would not be applicable where assessee paid architect's fee before end of accounting year

Reassessment made to tax royalty by invoking 'Force of Attraction Rule' quashed by Delhi HC

IT/ILT : Where during assessment under section 143(3), receipts by assessee-US company was treated as royalty and taxed on gross basis at rate of 15 per cent, but Assessing Officer initiated reassessment contending that, since assessee had a PE in India, said receipt was to be attributed to Indian PE and said amount was to be taxed at 20 per cent, since Assessing Officer had earlier examined entire issue of royalty and its taxability in its entirety and all relevant facts were fully and truly di

Lease equalization charge isn't in nature of reserve; to be added back while computing book profit f

IT : 'Lease equalization charges' is not in nature of a reserve and, therefore, same cannot be added back while computing book profits as per Explanation under section 115JA(2)

Freight to C&F agent wasn't reimbursement and liable to TDS as agent didn't made TDS while making pa

IT : Where assessee could not adduce any evidence that C & F agent deducted tax at source while making payment to carrier so as to prove that amount which was paid by assessee to C & F agent represented reimbursement of freight paid by C & F agent on behalf of assessee to airlines, provisions of section 194C were applicable

Filing of petition against mismanagement by shareholder exited from co. 15 years back is abuse of pr

CL: Where petitioners exited from company fifteen years back, ﬁling petition by invoking jurisdiction of Bench under section 397/398, by alleging purported acts of oppression and mismanagement appeared to be a mala fide intention and was an abuse of process of law

SEBI issues additional risk management norms for Regional commodity derivatives exchanges

SEBI : Risk Management For Regional Commodity Derivatives Exchanges

Now LLPs have to furnish Annual Return of foreign assets and liabilities to RBI

FEMA/ILT : Annual Return on Foreign Liabilities And Assets (FLA Return) – Reporting by Limited Liability Partnerships

Apex Court dismissed appeal against order of Tribunal based on earlier order already accepted by CBE

Excise & Customs : Where Tribunal had merely followed its earlier judgment, which was approved by Supreme Court and accepted by CBEC Circular of 2001, filing of appeal by revenue against said Tribunal order in year 2006 was a total mindless exercise and abuse of process of law; hence, appeal was dismissed

Corporate guarantee given to AE by charging 0.5% as service fee doesn't call for TP adjustment

IT/ILT: Where assessee had entered into a long-term contract with its AE for procuring copper concentrates for life time of mines, price paid to its AE should be compared with comparable having similar features

No sec. 263 revision if AO had allowed set-off of unabsorbed loss against surrendered income after d

IT: Where issues in respect of set off of unabsorbed losses fall in gross profit rate and depreciation had been examined by Assessing Officer in detail at assessment stage, jurisdiction under section 263 would not be invoked

Thursday, 22 October 2015

Calcined China Clay is classifiable under Heading of 'Kaolin clays'

Central Excise : Calcined China Clay, which is also known as Kaolin Clay, is classifiable under Heading 2505.10 'Kaolin clays, whether or not calcined' and not under heading 3824.90 "Other products of chemical or allied industries"

RBI issues directions to banks on 'Gold Monetisation Scheme, 2015

BANKING/INDIAN ACTS & RULES : Gold Monetization Scheme, 2015

CBDT changes conditions for claiming tax exemption by Infra Debt Fund

IT/ILT/INDIAN ACTS & RULES : Income-Tax (Seventeenth Amendment) Rules, 2015 – Amendment in Rule 2F

Complaint for cheque bouncing couldn't be quashed after conclusion of evidences before Trial Court

Negotiable Instruments Act: Where in a complaint under section 138 evidence had already been concluded before trial Court and there was specific averment in complaint that on representation of petitioner and other co-accused MOU was signed, mere fact that cheque issued by accused and MOU signed by accused did not bear signature of petitioner made out no case for quashing of complaint and summoning order against petitioner

Govt. provides service-tax exemption on Jan Dhan Yojna and Yoga

ST : Section 66B of the Finance Act, 1994 - Charge of Service Tax on or after Finance Act, 2012 - Mega Exemption Notifications – Amendment in Notification No.25/2012-STs, Dated 20-6-2012

Complaint for cheque bouncing couldn't be quashed after conclusion of evidences before Trail Court

Interim award received in pursuance of order of HC couldn't be taxed until final decision of HC was

IT : Interim award received by assessee pursuant to order of High Court is not liable to tax in year of receipt but in year when final award is passed by High Court

Manufacturer of tractor isn't comparable with manufacturer of harvester combine

IT/ILT : A manufacturer of tractor cannot be considered as comparable with manufacturer of harvester combine, simply because both machines fall in overall category of 'Agricultural equipments'

Tuesday, 20 October 2015

Govt. provides excise exemption on certain goods used in manufacturing of bio-diesels

OMNIBUS GENERAL EXEMPTION TO GOODS SPECIFIED IN CHAPTERS 1 TO 98 OF TARIFF – AMENDMENT IN NOTIFICATION NO.12/2012-C.E., DATED 17-3-2012

New Rule notified to compute ALP when more than one price is determined by Most Appropriate Method

INCOME-TAX (SIXTEENTH AMENDMENT) RULES, 2015 – AMENDMENT IN RULE 10B AND INSERTION OF RULE 10CA

0.5% of average tax free investment should be considered to work out sec. 14A disallowance and not t

IT : For purpose of section 14A, instead of taking into account total investment, investment attributable to dividend was required to be adopted an thereafter disallowance was to be arrived

Donations weren't unexplained as name and address of donor was available and donations were received

IT : Where assessee-society received corpus donations and donor's receipts contained names, addresses and PAN of donors along with details of mode of donations, impugned addition made by Assessing Officer could not be sustained

Losses already set-off prior to beginning of initial AY of sec. 80-IA relief can’t be notionally bro

IT : Where loss of business undertaking in earlier year was already absorbed against profit of other business, enterprises, assessee was entitled to claim deduction under section 80-IA

Tower/Blades to be deemed as parts of Wind Operated Electricity Generator; eligible for exemption

EXCISE : Clarification As To Whether Exemption Notification No.12/2012-c.e., dated 17-3-2012 Covers Part/Components Of Wind Operated Electricity Generators (WOEG)

IRDA unveils guidelines on 'Indian owned and Controlled entities'

INSURANCE : Guidelines On Indian Owned And Controlled Requirement For An Indian Insurance Company

High Court quashed adjudication order due to unexplained delay of 22 months in passing order

Excise & Customs : Inordinate and unexplained delay of 22 months in passing adjudication order after conclusion of hearing, itself vitiates said order; hence, same was set aside and matter was remanded back for re-adjudication

Advance received to do job work not to be held as income if wrongly shown as transportation charges

IT : Where assessee entered into an agreement with one 'B' to do job work for 'B' and 'B' provided certain adjustable advances/deposits to assessee, merely because in TDS certificate, it was wrongly mentioned as "transportation charges", it could not be said that income had accrued to assessee

HC condoned delay of 76 days in filing appeal before Tribunal on payment of cost of Rs. 2,000

Excise & Customs : Despite Tribunal's findings that no evidence was furnished by assessee in support of ground seeking condonation of delay, High Court condoned delay of 76 days in filing appeal before Tribunal on payment of costs of Rs. 2000 so that appeal may be heard on merits

Rule 8 applicable to FBT cases

IT: Where amount of expenditure incurred by assessee in extending fringe benefits to its employees was not solely for purpose of business and was also for purpose of agriculture, rule 8 of Income-tax Rules, 1962 was to be applied in valuation of fringe benefits

SAT affirms penalty on acquirer as it made public announcement with delay of 89 days under Takeover

SEBI: Time limit of 4 days prescribed in Regulation 14(1) of Takeover Regulations is crucial and important as time is of essence in such acquisitions and consequent open offer under regulations 10 and 12

No denial of sec. 10A relief just because certain on-site development work was sub-contracted to AE

IT: Even if export of computer software had not been executed by assessee itself entirely but part of 'on-site' work was sub-contracted to Associate Enterprise(AE), assessee would be eligible for deduction under section 10A

No tax on sum received on family settlement

IT: Where assessee received certain sum out of family settlement, same was not taxable as under section 56(2)(v)

No tax on sum received on family settlement u/s 56(2)(v) wherein only respective shares of family me

IT: Where assessee received certain sum out of family settlement, same was not taxable as under section 56(2)(v)

Writ not maintainable due to existence of disputed questions of fact and there is no denial of natur

Excise & Customs : Where disputed questions of fact are involved and there is no violation of principles of natural justice and no challenge to vires of provisions of Act, writ cannot be maintained against seizure of goods on allegation of smuggling, as there is effective alternate remedy of appeal in said matter