SEBI: Where respondents had not been able to show that SEBI had jurisdiction to interfere with affairs of petitioners' business and SEBI, having not concluded till date that business of petitioners fell within meaning of expression Collective Investment Scheme, operation/execution of directions, contained in impugned order restraining petitioners from collecting money from investors and launching new schemes were to be suspended
Thursday, 29 January 2015
A Co. isn't entitled to deduction of interest under sec. 24(b) as it can't utilize properties for 'o
IT: Even where assessee-company had paid interest on borrowed fund, deduction under section 24(b) could not be allowable as such provision is applicable only to self occupied properties
Confessional statement doesn't have evidentiary value in absence of incriminating material found dur
IT : Where in absence of any incriminating material etc., found from premises of assessee during course of search, statement of assessee recorded under section 132(4) would not have any evidentiary value;
HC quashed SEBI's order restraining petitioners from launching new scheme as if such schemes weren't
SEBI: Where respondents had not been able to show that SEBI had jurisdiction to interfere with affairs of petitioners' business and SEBI, having not concluded till date that business of petitioners fell within meaning of expression Collective Investment Scheme, operation/execution of directions, contained in impugned order restraining petitioners from collecting money from investors and launching new schemes were to be suspended
Limitation period to complete block assessment to be counted from the month of issuing last authoriz
IT : Block assessment has to be completed within a period of two years from end of month of date of issue of last authorization for search under section 132
Non-compete fee paid to director on his retirement to restrict him from sharing his experience was r
IT : Disallowance under section 14A for assessment year 2007-08 has to be worked out on some reasonable basis, without resorting to rule 8D
HC sets aside addition of deemed dividend as assessee-co. wasn't a shareholder in lender-Co.
IT : Where assessee company received a sum from another company it was not liable to pay tax under section 2(22) as assessee was not a registered or beneficial shareholder of a company
SC can't be a principal court of original jurisdiction to decide on questions forming subject matter
Arbitration Act: Section 42 provides for scope of jurisdiction of a court over arbitral proceedings and it applies to applications made under Part-I of Act, if they are made to a court as defined in section 2(1)(e), however in no circumstances can Supreme Court be 'Court' for purposes of section 2(1)(e), even if it retains control over arbitral proceedings
Investigating officer can arrest assessee under ST only after examining docs and when offence is mad
Service Tax : Arrest under section 89 read with section 90 of Finance Act, 1994 on allegation of non-payment of collected service tax, can be made only after : (a) examining documents and (b) coming to prima facie conclusion that offence is made out
ALP adjustments to be made only for international transactions with AEs without extending it to non-
IT/ILT : ALP adjustment has to be made only for international transactions with AEs without extending it to non-AEs
Quality control services received abroad in relation to export products are eligible for input servi
Cenvat Credit : Where assessee-manufacturer had availed quality control services (deburring/removal of rust) from a US service provider at buyer's warehouse in USA for export of 'axles (motor vehicles parts)' to said buyer, service tax paid on such quality control services under reverse charge was eligible for input service credit
Stay application not filed with appeal but filed before hearing is valid, as there is no time-limit
Service Tax : In absence of any legal provision prescribing time limit for filing stay application, stay application not filed with filing of appeal but filed before personal hearing must be considered on merits
Suzuki Plans Rs 8,500-Crore Investment In Gujarat Plant
Suzuki Motor started construction of a manufacturing plant in Gujarat that Chairman Osamu Suzuki called the start of a "new era" for the Japanese carmaker. Suzuki plans to supply vehicles made at the factory to local unit Maruti Suzuki, a proposal that is staunchly opposed by some of the Indian company's minority shareholders.
Suzuki Motors Gujarat, a wholly owned subsidiary of Suzuki Motor, will own the plant where it plans to invest close to Rs 8,500 crore in several phases. The facility at Hansalpur on the outskirts of Ahmedabad is estimated to create a capacity of 7.5 lakh units a year, and is being projected to help Maruti attain its sales target of 2 million vehicles by fiscal 2020.
Speaking at an event on Wednesday where Gujarat Chief Minister Anandiben Patel laid the foundation stone for the plant, Osamu Suzuki said: "Under the 'Make in India' programme proposed by Prime Minister Narendra Modi, we will set up a state-of-the-art production plant here in Gujarat, with high focus on productivity and efficiency." Maruti is expected to source vehicles for exports from the proposed plant due to its proximity to two ports, at Mundra and Kandla. The auto maker now incurs Rs 6,000-7,000 to take a vehicle to port from its facilities in landlocked Haryana.
The first phase of the new plant will entail an investment of Rs 3,000 crore to make a 2.5-lakh-unit assembly line, which will begin operation in the middle of 2017. It will add two more lines to take the capacity to 7.5 lakh vehicles.
Eventually, Suzuki expects to produce as many as 1.5 million vehicles a year in the Gujarat region. Maruti has two tracts of around 600 acres each in the Hansalpur area. It plans to seek shareholders' approval to transfer the land where Suzuki is building the plant to the parent after Parliament clears amendments to the Land Acquisition Act.
Under current rule, such a proposal needs approval from at least 75% minority shareholders, but some of them including institutions are against the plan on concerns that it would hurt Maruti's profitability. The amendment proposes to reduce the consent requirement to 50%.
For Suzuki, India is one of the most important markets and Maruti is its largest unit. A decade back, Maruti contributed just 10% of the parent's turnover, but today, this has swelled to almost 30%. In terms of profit, the Indian subsidiary contributes about a quarter.
"Although we have been in India for three decades, but there has been no change in the way I tackle new challenges. So for me, setting up of the Gujarat facility is like beginning of a chapter ... we can even call it the second chapter of SMC in India," the Suzuki chairman said.
Suzuki is aiming at global volumes of 5 million by 2020. That would call for incremental volumes of 1.2 million globally and Maruti is key to reach that target. The Indian unit is estimated to account for 40% of Suzuki's revenue by 2020.
Maruti Chairman RC Bhargava said the Gujarat "facility is likely to offer a significant cost benefit of 10-15% due to the logistical cost advantage the location offers".
Source:- economictimes.indiatimes.com
Notional interest on 'interest-free security deposits' not includible in value of renting of immovab
Service Tax : Notional interest on interest free security deposit cannot be added to rent agreed upon between parties for purpose of levy of service tax on renting of immovable property
CBDT asks its officials to follow HC's ruling in 'Vodafone' in cases where shares were issued at pre
IT/ILT : Section 92C of the Income-Tax Act, 1961 - Transfer Pricing - Computation of Arm’S Length Price – Acceptance of Order of High Court of Bombay in Case of Vodafone India Services Pvt. Ltd. [2014] 50 Taxmann.com 300 (Bombay)
India’S Veg Oils Import Up 16 Per Cent
Indian vegetable oil imports have recorded a 16 per cent growth at 2.32 million tonnes during November to December 2014, Solvent Extractors’ Association of India (SEAI) said in a statement.
During the same months last year, vegetable oil imports were recorded at 2.01 million tonnes, SEAI adds.
SEAI attributed the rise to high prices of soybean and lesser realization for oil and soybean meal in export market, resulted in lower crushing and availability of domestic oil.
In last three months, due to nil export duty on palm products by Indonesia and Malaysia and reduced demand of CPO for bio diesel, pushed the export of palm products to India to reduce burgeoning stock held by the exporting countries, the association stressed.
During November to December 2014, import of refined oil (RBD Palmolein) was at 100,846 tonnes, as compared to 372,102 tonnes imported during the same period last year due to nil export duty on RBD Palmolein and CPO by Indonesia and Malaysia.
During the period, palm oil import also decreased marginally to 1.633 million tonnes , against 1.637 million tonnes during the same period of last year. However, soft oils import has increased to almost doubled and reported at 637,687 tonnes from 342,249 tonnes last year.
Share of soft oils import increased to 28 per cent from 17 per cent last year while palm oil products down to 72 per cent from 83 per cent, SEAI adds.
As on January 1, 2015, current stock of edible oils both at ports and in pipelines increased to 2.08 million tonnes from 1.96 million tonnes in December 2014, up by nearly 500,000 tonnes compared to January, 2014.
Source:- thecropsite.com
SEZ was entitled to interest on belated ST refund even if interest was not covered in notification
Service Tax : Since interest on belated refund is statutorily provided in section 11BB of Central Excise Act, SEZ units getting belated refund of service tax under an exemption notification are entitled to interest, even if not provided in said Notification
Rupee Ends Unchanged Against U.S. Dollar At 61.41
The Indian rupee on Wednesday ended unchanged against the U.S. dollar at 61.41 ahead of the outcome of U.S. Federal Reserve’s policy meeting.
The rupee resumed lower at 61.50 per dollar as against the last closing level of 61.41 per dollar at the Interbank Foreign Exchange (Forex) Market. It moved down further to 61.52 per dollar on initial dollar demand from banks on the back of higher dollar overseas.
However, the domestic currency recovered from initial losses and firmed up to 61.2900 per dollar on heavy selling from banks and exporters due to persistent foreign capital inflows into equity market. It ended at yesterday’s closing level of 61.41 per dollar.
The rupee hovered in a range of 61.29 and 61.52 per dollar during the day.“Rupee remained volatile...investors remained cautious before the outcome of FOMC meeting which concludes tonight,” said Admisi Forex, Director, Suresh Nair.
The dollar index was up by 0.10 per cent against a basket of six major global rivals.The US dollar climbed in the global market versus its counterpart in Singapore after the Asian nation unexpectedly eased monetary policy.
Veracity Group, CEO, Pramit Brahmbhatt, said, “The trading range for the Spot USD/INR pair is expected to be within 61.00 to 61.80.
The Indian equity benchmark Sensex moved down by 11.86 points, or 0.04 per cent, to end at 29,559.18.Meanwhile, premia eased on fresh receipts by exporters.
The benchmark six-month premium payable in June ended lower at 190.5-192.5 from 192-194 paise yesterday while forward contracts maturing in December ruled steady at 398-400 paise.
The Reserve Bank of India fixed the reference rate for dollar at 61.4105 and for Euro at 69.8237.The rupee dropped further against the pound to 93.40 per pound from 92.58 previously and also fell against the euro to 69.72 per euro from 69.17.The rupee also moved down further to 52.14 per 100 yen from 52.03 previously.
Source:- thehindu.com
Amended definition of NPA allowing different regulators to lay down different NPA norms isn't uncons
SARFAESI : Amendment not unconstitutional merely because of inconsistency with the objects of the Act
Canvass cloth was exempted from sales tax as it was specifically included in exemption notification
CST & VAT: U.P. VAT - Where assessee purchased canvas cloth and effected sale of same, in view of entry No. 53 of notification dated 31-1-1985 issued under section 4(a), assessee was eligible for exemption from payment of tax on sale of canvas cloth
No penalty due to blank declaration form submitted by exempted unit as it couldn't evade taxes
CST & VAT: Haryana VAT - Where assessee was an exempted unit there would be no occasion to evade tax; penalty cannot be levied merely on ground that Form 38 accompanying machineries in transit sent for repairing was found blank
NBFCs purely into investment activities need not furnish any credit info to credit info Cos, says RB
NBFCs : Submission of Data to Credit Information Companies - Format of Data to Be Submitted by Credit Institutions
In case of reverse charge no ST is payable on returns/rejections prior to expiry of credit period
Service Tax : Where software services are imported on 60 days' credit and prior to expiry of 60 days, defective software are returned back, then, for assessee liable to pay service tax on receipt basis, no service tax is payable on said returns of defective software
AO could invoke sec. 14A disallowance even if assessee had utilized mixed funds for earning tax free
IT : Where funds utilized by assessee was mixed funds and, hence, interest paid on borrowed fund was also relatable to interest on investment made in tax free funds, interest expenditure relatable to investment in tax free funds was to be computed under provisions of Rule 8D(2)(ii)
Prima facie case means an arguable case which needs an enquiry and it doesn't mean a full proof case
Competition Law : Prima facie case means an arguable case which needs an enquiry and does not mean a full proof case and same cannot be interfered with in exercise of writ jurisdiction
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