CA Terminal

Tuesday, 11 March 2014

Lessee has ‘right to use’ if responsibilities casted on him to safeguard earthmoving equipment; no s

Service Tax : Where hirer of an earthmoving equipment is responsible for misuse/ abuse, safe custody, liability to settle disputes with third parties and compensation for damages, said transaction, prima facie, amounts to transfer of right to use and deemed sale and not liable to service tax under supply of tangible goods for use services

Depreciation can't be a source of explained investment unless equivalent cash is utilized by assesse

IT : Where assessee claimed that amount of depreciation allowance was a source of income for investment made in assets found during course of search, whereas Assessing Officer opined that said amount must have been used in course of carrying on assessee's truck plying business, in absence of any conclusive material on record, credit was to be allowed to extent of 40 per cent of claim made by assessee

German Recovery On Track As Imports, Exports Rise In January

Economic recovery in Germany appears to be on track as demand for German-made goods increased both at home and abroad, official trade data showed on Tuesday.

The Eugen Maersk container ship (right) and the Majestic Maersk (left) in dock at the JadeWeserPort in Wilhemlshaven, Germany on October 4, 2013.

After adjustment for seasonal blips, Germany exported goods worth 94.5 billion euros ($131 billion) in January, an increase of 2.2 percent from the level inDecember, the federal statistics office Destatis said.

And imports -- a yardstick of domestic demand -- rose even more strongly, climbing 4.2 percent to 77.3 billion euros.

Because imports rose more strongly than exports, the trade surplus -- the balance between imports and exports -- narrowed.

Germany's booming trade surplus has been the target of a great deal of international criticism in recent months, with critics arguing that its economic prowess comes at the expense of the eurozone's weaker members.

The critics argue that Germany needs to boost domestic demand and so help its EU partners by spurring export-driven growth in their economies rather than continue to rely mostly on its own exports for growth.

But the latest trade data, with the strong increase in imports, appear to suggest such criticisms are misplaced.

While German exports to its eurozone partners rose by 3.2 percent year-on-year in January, exports to countries outside Europe jumped by 9.1 percent.

And imports from the euro area climbed by 4.0 percent, while imports from outside Europe contracted by 1.9 percent.

"The euro area economy continued to stabilise at the start of the year," said BayernLB economist Stefan Kipar.

"Today's data were better than expected, not just because exports rose more strongly than expected, but also because exports to the eurozone were positive," Kipar said.

"The sharp rise in imports is similarly positive because it points to a pick-up in domestic demand and takes ammunition away from the heated debate about the German current account surplus," the expert said.

Natixis economist Johannes Gareis said the trade data were "in line with our expectations of a strengthening global recovery, while German imports growth remains robust due to Germany's healthy domestic economy."

Gareis noted that the dynamic of imports in January was driven mainly by German demand for goods from its eurozone neighbours.

"In this respect, the data offer some relief for the German growth locomotive to do more to rebalance the euro area," Gareis said.

Last week, the EU Commission in Brussels said that Germany's huge current account surplus is a source of economic imbalance in Europe.

"Nobody wants to criticise Germany for having a strong external demand and competitiveness," the EU's Commissioner for Economic and Monetary Affairs Olli Rehn said on the presentation of a new report.

"I want see every EU member states be as competitive as Germany," he said.

But "at the same time, Germany -- and to some extent the rest of Europe -- would benefit from stronger domestic investment and reinforced domestic demand in Germany," Rehn said.

Source:- bangkokpost.com

Gold, Silver Imports Dip 71.4% To $1.63 Billion In February

Gold and silver imports declined 71.4 per cent to $1.63 billion in February mainly due to restrictions imposed by the government on inbound shipments of the yellow metal to narrow the current account deficit.

Imports of gold and silver in February 2013 stood at $5.24 billion. In January this year, they were $1.72 billion.Imports of the precious metals during April-February declined 41.47 per cent to $30.7 billion from $52.4 billion a year earlier.

Lower imports helped to narrow the trade deficit to $8.13 billion in February from $14.1 billion.India's current account deficit (CAD), which is the excess of foreign exchange outflows over inflows, touched a historic high of 4.8 per cent of GDP in 2012-13, mainly due to rising imports of petroleum products and gold.

A high CAD puts pressure on the rupee, which in turn makes imports expensive and fuels inflation.According to a finance ministry official, the CAD is expected to fall by almost 50 per cent to $45 billion in the current financial year.

The Reserve Bank had last month projected CAD at less than $50 billion, or 2.5 per cent of GDP, down from $88.2 billion, or 4.8 per cent of GDP, in 2012-13.

The government had increased customs duty on gold to 10 per cent and banned import of gold coins and medallions, while the RBI linked imports of the metal to exports.

India is the largest importer of gold, which is mainly utilised to meet the demand of the jewellery industry. Imports stood at about 830 tonnes in 2012-13.

Source:- timesofindia.indiatimes.com

Income of Malaysian branch of Indian Co. not taxable in India if it was taxable in Malaysia on exist

IT/ILT : Following order passed by assessee's own case relating to earlier assessment years, it was to be concluded that Malaysian branch of assessee was having permanent establishment in Malaysia and, thus, income arising therefrom was not taxable in India in view of DTAA between India and Malaysia

Mere confirmation of parties was not enough to prove legitimacy of bogus brokerage; HC upheld disall

IT : Where evidence on record disclosed that amount paid were not brokerage, merely because payment was confirmed by parties, it would not enable assessee to claim deduction

FinMin notifies 8.7% interest rate wef 01-04-2014 on special deposit Scheme under non-Govt. PF contr

IT : Special Deposit Scheme for Non-Government Provident, Superannuation and Gratuity Funds - Notified Rate of Interest on Deposits Made under said Scheme W.E.F. 1-4-2014 Until Further Orders

HC directs mortgagee to repay sum paid by third person on behalf of its debtor to receive back title

CL: Where pursuant to settlement 'D' paid a sum to mortgagee-company on behalf of debtor-company, mortgagee was directed to return sum paid by 'D' if it wanted to retain title deeds of mortgaged properties

Seized doc indicating capitation fee not enough to cancel trust's registration without proof of its

IT : Where in course of search carried out at assessee's premises, certain documents were found indicating some receipt of cash against admission of students in various courses run by assessee trust, in view of fact that presumption under section 292C was rebutted by denial of assessee as no evidence of actual receipt of donation or capitation fees was found in search, registration granted under section 12AA could not be cancelled on basis of seized documents

Issue not raised earlier before CESTAT can't be raised first time before High Court either

Excise & Customs : In appeal under section 35G, appellant is permitted to raise only such ground, which was raised and decided by CESTAT; therefore, where a question was not raised and decided by CESTAT, it cannot be considered by Court and no review petition can be filed on ground that said question was not so considered

Filing of return before wrong AO won't be deemed as default in filing of return to invite reassessme

IT : Where Assessing Officer reopened assessment on ground that assessee did not file its return of income, in view of fact that assessee had filed its return but through inadvertance return was filed before wrong Assessing Officer, Tribunal was justified in setting aside impugned reassessment proceedings

Addition made by TPO set aside as difference in operating profit margin was within tolerance limit

IT/ILT : Where TPO having found that assessee's operating profit margin was 5.74 per cent as below arithmetic mean margin of comparables of 6.97 per cent, made certain addition to assessee's ALP, since difference in operating margin was within range of plus/minus 5 per cent, no adjustment was required to be made

Preponment of hearing won't invalidates valid transfer order if assessee has given time to file his

IT : Where date of hearing relating to transfer of assessee's case was preponed but still assessee was given a reasonable opportunity to putforth its submissions, impugned order passed by Commissioner under section 127 did not require any interference

Rectification application admissible only against mistake apparent in final order and not in miscell

Service Tax : Only mistakes apparent in 'final orders' are amenable to rectification; mistakes apparent in miscellaneous order allowing restoration of appeal cannot be rectified under section 86 of Finance Act, 1994 read with section 35C of Central Excise Act, 1944

Monday, 10 March 2014

No sec. 68 addition on account of loan transactions if revenue approved of loan repayment in later y

IT: Where department had accepted repayment of loan in subsequent year, no addition was to be made in current year on account of cash credit

Case remanded to check sec. 68 additions on assessee's failure to prove authenticity of bank transac

IT : Where assessee failed to discharge burden as laid down under section 68 and did not prove genuineness of transactions, matter was remanded to Commissioner (Appeals) to decide same afresh in light of judgment of Apex Court in CIT v. P. Mohanakala [2007] 291 ITR 278/161 Taxman 169

Credit couldn't be denied if duty paid goods were returned and used in further manufacturing

Excise & Custom : Where assessee had proved by documentary evidence that they actually received duty-paid goods from their respective purchasers and same were actually used in manufacturing process, credit/refund of duty paid earlier could not be denied merely because a particular form was not maintained/not filed