ITAT advices AO not to expect PAN of 3 crores rural depositors of Sahara; deletes ad-hoc additions u

IT : In course of proceedings under section 68, production of hard copies or printouts of computer record would be sufficient compliance of requirements asked by notices or summons and, thus, addition cannot be made merely on ground that requisite information was not furnished in desired soft copy format

India May Cut Iranian Oil Imports By 15% In 2014-15

India may cut Iranian oil imports by 15% in 2014-15 from the current fiscal year’s target, if western sanctions on Iran are not eased and the situation remains the same, a senior oil ministry official said on Tuesday.

India, Iran’s second-biggest customer after China, may import 180,000-185,000 barrels per day (bpd) of Iranian oil in 2014-15 fiscal year beginning in April, and would be able to import close to the targeted 220,000 bpd in the current fiscal year, R.K. Singh told reporters.

Tough US and EU sanctions have slashed exports from Iran by more than half to about 1 million barrels per day (bpd), costing it as much as $80 billion in lost revenue since early 2012, according to White House estimates.

Even though a breakthrough accord was reached in November between world powers and Tehran over its disputed nuclear programme, tough work lies ahead in moving on from the initial deal

Source:- livemint.com

Export commission paid to NR outside India for services rendered outside India out of the ambit of T

IT/ILT: Where assessee had paid export commission to its non-resident agent, in view of fact that services of non-resident agents were rendered outside India and commission was also paid outside India, income of such agent by way of commission could not be considered as accrued or arisen or deemed to be accrued or arisen in India

Rebate of duty is available on export of goods if goods are proved to have been actually exported

Excise & Customs : Condition of grant of rebate that exports must be made directly from factory/warehouse can be waived only if there is proof that goods have actually been exported to satisfaction of rebate sanctioning authority and goods are clearly identifiable and co-relatable with duty-paid goods cleared from factory

CLB constituted interim board with existing directors which ceased to hold office due to operation o

CL : Where additional directors ceased to be directors because of non-confirmation of their appointment in AGM due to failure of company to hold said AGM, interim Board of Directors was to be constituted in which these directors were to continue as Directors

RBI allows cancellation and rebooking of forward contracts for all current and capital account trans

FEMA/ILT : Risk Management and Inter Bank Dealings

EXIM bank extends line of credit of USD 125 million to Sudan

FEMA/ILT : Exim Bank's Line of Credit of USD 125 Million to The Government of The Republic of Sudan

CBDT notifies ‘Orissa State AIDS Control Society’ for sec. 10(46) exemptions

IT : Section 10(46) of The Income-Tax Act, 1961 - Exemptions - Statutory Body/Authority/Board/Commission - Notified Body or Authority - Orissa State Aids Control Society

RBI releases new guidelines for banks for opening accounts of mentally challenged persons

BANKING : Legal Guardianship Certificates issued under The Mental Health Act, 1987 and National Trust for The Welfare of Persons With Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999

Seized sum couldn’t be added as unexplained money if assessee had explained its source

IT: Where in support of cash seized during search, assessee brought on record its cash book which duly showed that said amount belonged to its particular branch office, amount so seized could not be added to assessee's taxable income taking it to be unexplained money

Late payment of taxes due to delay in payments by service recipients is reasonable excuse to seek pe

Service Tax : Where delay in payments by service recipients seriously erodes assessee's cash flow leading to insufficiency of funds for paying taxes, it amounts to 'reasonable excuse' for default/delay in payment of tax; no penalty is leviable in such cases

Banking route proves to be a sacred route; no unexplained credit for sum received via banking channe

IT: Where assessee-company purchased land through 'N' and money given to 'N' for that purchase was fully explained in assessee's books of account, such money could not be treated as assessee's undisclosed income

Assessee can’t challenge Custom tariff value on the ground that it’s not in consonance with transact

Excise & Customs : In view of non-obstante clause in section 14(2) of Customs Act, in case of notified goods, assessee cannot state that section 14(2) does not apply to his Import and that duty is payable only on transaction value declared by him; so long as said tariff value fixed by Revenue is not under challenge, assessee cannot insist to pay duty on transaction value

ST exemption on sponsorship of sports events by national sports federation extended to international

GST : Section 93, Read With Section 65(99A), of The Finance Act, 1994 - Exemptions - Service Tax - Sponsorship Services - Entry 11(A) of Not. No. 25/2012-ST Amended to Extend Exemption to Services by Way of Sponsorship of Sporting Events Organized by A National Sports Federation, or Its Affiliated Federations, Where The Participating Teams or Individuals Represent Any "Country" as Well

ITAT applies Nike’s case to hold that no tax leviable on Indian ‘LO’ engaged in procuring goods for

IT/ILT : ITAT applies Nike ruling of Kar. HC to exempt Tesco under Expln 1(b) to sec. 9(1)(i) wrt its Indian LO's activities

RWA providing services to own members; contributions exceeding Rs. 5,000 p.m. fully liable to ST

GST : Section 93, Read With Section 67, of The Finance Act, 1994 - Exemptions - Service Tax - Unincorporated/Non-Profit Entity Arranging Exempt Services for Its Members - CBEC Clarifies in Respect of Exemption Under Entry 28(C) of Notification No. 25/2012-ST That : (I) If Amount Exceeds Rs. 5,000 P.M., Full Amount Would be Taxable ; (II) SSI-Exemption, Pure Agent Benefit and Cenvat Credit Benefit Would be Available to Resident Welfare Association (RWA); (III) Benefit of Pure Agent Would Not be A

Assessee ceased to be owner of property which was transferred to trust; not includible in her wealth

WT: Where on basis of material on record, Tribunal concluded that after executing trust deed assessee no longer remained owner of property transferred to a trust, said property could not be included in net wealth of assesse in course of wealth-tax proceedings

Application for doctrine of promissory estoppels can be restrained if govt. shows overriding public

CST & VAT : Where assessee, a sick company, was revived by BIFR and BIFR had directed sales tax authorities to consider extension of exemption and such order was not challenged by Government, Government was bound by it, especially when no overriding public interest was shown to avoid application of promissory estoppel

Revenue to refund sale proceeds of property auctioned to recover excise duty as it was mortgaged wit

Excise & Customs : Where department had auctioned property belonging to manufacturer to recover pending excise dues and such property was found to be mortgaged with bank, department was liable to refund sale proceeds back to buyer-in-auction with 12% simple interest

No concealment penalty on mere TP adjustment if such issue was of debatable nature

IT/ILT: Where TPO determined ALP of international transaction at a higher amount as against disclosed by assessee and thereupon Assessing Officer made addition in income of assessee and also imposed penalty under section 271(1)(c) on basis of impugned addition, since issues on basis of which ALP shown by assessee had been rejected were debatable, they could not be said to be leading to concealment of income

Large intra group trades to artificially increase volume of a scrip held manipulative; violates FUTP

SEBI : Large number of intra-group trades entered into by appellants among themselves with insignificant difference in price and time were manipulative and were in violation of FUTP Regulations

ITAT says no to liberalized interpretation; denies sec. 54F relief for investment in name of sister-

IT : Liberal interpretation of statutory provisions taken by Courts to extend exemption available under section 54 to assessee, even in cases of investments in names of spouse and minor children of assessee cannot be extended beyond a point so to cover investments made in names of other blood relations or other relations

Delay in filing appeal due to personal differences with CA was a vague excuse; delay not condonable:

Service Tax : Where assessee sought condonation of delay on ground that delay in filing appeal was caused 'due to some exigencies coupled with developed differences' with Chartered Accountant, delay was held non-condonable as said ground was vague and clearly represented that assessee had knowledge of such intervening developments

MAT credit isn’t analogous to MAT refund; HC dismisses writ seeking refund of MAT

IT : There is no provision under Act to refund amount which has been admitted and which has been paid by assessee as MAT company

Food Commodities, Dry Fruits Get Dearer

Prices of food commodities and dry fruits increased, while vegetables price came down significantly over the past month.Food commodities like rice and lentils have become dearer by as much as Rs 30 per kg. Retailers have attributed price hike to low supplies and soaring prices in India - the major source country - itself.



"Food prices are getting higher as we are not getting adequate supply," Bidur Shrestha, a retailer at Asan, told Republica, urging the government to do the needful for increasing supply. "If the supply is not raised in proportion to the rising demand, prices will increase further in the coming days."



Price of gram lentil increased by Rs 30 per kg to Rs 110 during the review period. Similarly, prices of green gram lentil and split pigeon lentil have gone up by Rs 10 per kg each to Rs 150 and Rs 120, respectively. Red lentil has become dearer by Rs 5 per kg to Rs 115, while price of black lentil has remained unchanged at Rs 138 per kg.



Pabitra Bajracharya, president of Nepal Retailers´ Association, said the recent rise in price of food commodities in Indian market is the reason behind surge in food prices in Nepal. "India is our major supplier (for food commodities). Any fluctuation in prices there affects prices here," he added.



Similarly, price of different varieties of rice has increased by as much as Rs 5 per kg over the period. Mansuli rice and Indian Basmati rice have become dearer by Rs 5 per kg each to Rs 50 and Rs 80, respectively, while price of Jeera Masino has increased by Rs 3 per kg to Rs 65.



Prices of dry fruits have also increased during the period. Almond has become dearer by Rs 75 per kg to Rs 1,100, while prices of pistachio and cashew nut have surged by Rs 150 per kg and Rs 80 per kg, respectively, to Rs 1,500 and Rs 980.



Retailers have blamed dry fruits suppliers for raising prices arbitrarily. "Importers are creating artificial shortage to increase prices on their own," Ujjawal Hada, a wholesaler of dry fruits at Indra Chowk, said.



There, however, is some relief for consumers as vegetables prices have come down significantly on the back of improved supplies. Prices of major vegetables like cauliflower, tomato, potato, and cabbage, among others, plunged during the period.



Price of cauliflower dropped to Rs 35 per kg on Sunday, down from Rs 45 per kg recorded a month ago. Similarly, prices of cabbage, tomato and potato have come down by Rs 10 per kg, Rs 5 per kg and Rs 4 per kg, respectively, to Rs 25, Rs 35 and Rs 25.



"The Kalimati market is receiving adequate supply of vegetables over the past few weeks. This has caused prices to come down," Ramesh Dangol, planning officer at the Kalimati Fruits and Vegetable Development Board, said.The market is receiving an average of 850 tons of vegetables a day at present.

Source:- myrepublica.com

Tribunal not to consider detailed submissions in pre-deposit order, mere prima-facie consideration i

Excise & Customs : While directing pre-deposit, aspects to be considered are : (a) Prima facie case for full waiver, (b) undue financial hardships of party; and (c) safeguarding interest of revenue; appellate authority is not expected to consider submissions on merits in detail and give its findings in detail at that stage

Mere bona fide mistake of assessee leading to wrong claim of deduction won’t attract concealment pen

IT : Where there was no intentional furnishing of inaccurate particulars of income and it was only due to a bona fide mistake assessee claimed deduction of NPA provision under section 36(1)(viia), rejection of said claim would not result in levying penalty under section 271(1)(c)

Onion, Mustard, Cumin Are Flavour Of Rabi Season

Cumin, onion and mustard have found favour with farmers as sowing of these crops was much higher than the expected sowing area. Overall sowing of rabi crop in the state was about 35% higher than the last year.



Officials said that in 2012-13 the sowing was in an area of 27.23 lakh hectares, which this year it was in 37.36 lakh hectare. The normal sowing of rabi crop in the state is an area of 35.75 lakh hectares. Officials said high prices of onion and cumin have led to extensive sowing in the state. Usually, onion is sown on 53,600 hectares of land, but this year it crossed the 72,500 hectares - an increase of nearly 19,000 hectares. Officials said that this was only 14,000 hectares last year.



Officials said that rabi crop sowing has picked up this year. Agriculture officials said that the sowing of onion was earlier limited to Bhavnagar only, but this year onion has spread across almost all of Saurashtra and Kutch.



Officials in the department said sowing of mustard, cumin, wheat grams and garlic had crossed 100% sowing.



Agriculture department officials said "the sowing of cumin in state was in an area of 4.54 lakh hectares which was in an area of 3.29 lakh hectares. The normal area of sowing was in 3.49 lakh hectares." Similarly the sowing of mustard was in 2.81 lakh hectares, wheat 14.08 lakh hectares, garlic 40100 hectares of land.



Officials said that this year, wheat has also really picked up. Against normal sowing of 12.44 lakh hectares, it was sown on 14.08 lakh hectares.



Officials further said that this year, because of the good rains, check dams and farm ponds which have been constructed especially in water scarce areas are full, and hence sowing has picked up in all districts.



In Saurashtra and Kutch - barring Amreli - all districts have completed 100% sowing. In Saurashtra, sowing takes place on 9.47 lakh hectares and this year it has crossed 12.32 lakh hectares which is on the higher side as compared to previous years.

Source:- timesofindia.indiatimes.com

Textile Lining Material: New Customs Value Fixed

Directorate General of Customs Valuation Karachi has fixed $3 per kg as new customs value on import of textille lining material from China It is learnt here on Monday that the directorate has issued a new valuation, which has superseded Valuation Ruling No 483/2012. According to the ruling, the customs value of textile lining material was earlier determined vide Valuation Ruling No 483/2012, dated 25-10-2012.



Various representations were received, including representations made by KCC&I regarding revision of Customs value of the said goods to reflect the current price trend of these goods in the international market. This prompted an exercise to re-determine Customs value of Textile Lining Material under Section 25A of the Customs Act, 1969.



The valuation methods given in Section 25 of the Customs Act, 1969 were followed. Transaction value method provided in Sub-Section (1) of Section 25 was found inapplicable because requisite information as per law was not available. Identical / similar goods value methods provided in Sub-Sections (5) & (6) of Section 25 of the Act ibid were examined for applicability to the valuation issue in the instant case. These methods furnished unreliable values and were not found applicable. Deductive Value Method under Sub-Section (7) of Section 25 was, therefore, adopted to determine customs values for Textile Lining Material in this case read with Sub-Section (9) ibid. Meetings were held with the stakeholders and attended by representatives of FPCC&I and KCC&I who provided feedback regarding the valuation of subject goods.



In cases where declared/transaction values are higher than the Customs value determined in the Ruling, the assessing officers shall apply those values in terms of Sub-Section (1) of Section 25 of the Customs Act, 1969. In case of consignments imported by air, the assessing officer shall take into account the differential between air freight and sea freight while applying the Customs value determined in the ruling.



The value determined vide this Ruling shall be the applicable Customs value for assessment of subject imported goods until and unless it is rescinded or revised by the competent authority in terms of Sub-Section (1) or (3) of Section 25-A of the Customs Act, 1969. The Collectors of Customs may kindly ensure that the value given in the Ruling be applied by the concerned staff without fail, it added.

Source:- brecorder.com

Nickel Climbs To Two-Week High On Indonesia Ore Export Ban

Nickel climbed to the highest level in two weeks on fears that Indonesia’s ban on mineral ore exports will cut global nickel supplies while allowing Freeport-McMoRan Copper and Gold Inc. to keep exporting copper concentrates.

Indonesia’s President Susilo Bambang Yudhoyono signed a regulation implementing the ore ban, energy and mineral resources minister Jero Wacik told reporters on 11 January, after a meeting of government ministers in West Java. The rule, which went into effect after months of wrangling, prohibits all raw ore exports and permits shipments of minerals that are processed or refined in the country.

While the decision eases concern copper shipments will be disrupted, it’s pushing up nickel prices as Indonesia is the world’s biggest mined producer. The ban is part of a wider policy in Southeast Asia’s largest economy to boost state revenue by turning Indonesia from an exporter of raw commodities into a manufacturer of higher-value products.

“The law should clearly be bullish for nickel, as we should expect to see significant lower volumes of ore flow from Indonesia to China,” David Wilson, an analyst at Citigroup Inc. in London, said after the decision.

The country accounts for 18% to 20% of global nickel supply, 9% to 10% of aluminum from bauxite and 3% of copper, Goldman Sachs Group Inc. estimates.

Futures advance

Nickel futures in London jumped as much as 2.4% to $14,190 a tonne on Monday, the highest level since 30 December, after gaining 3.3% on 10 January. Chinese ore stocks will become more valuable and many producers will not be able to use lower- grade ore from the Philippines as an alternative, said Wilson.

Shares of Nickel Asia Corp., which accounts for about a third of Philippine output, climbed as much as 4.1% to the highest intraday level since 5 November. Alumina Ltd jumped as much as 5.8% in Sydney trading on prospects for increased demand after Indonesia banned bauxite exports.

The rule reinforced a 2009 mining law that called for greater state benefit from the industry, local metals processing and reduced foreign participation. The government first limited ore exports in 2012 and then faced a series of legal challenges, leading to policy flip-flops on implementing the ban that created uncertainty over whether it would go ahead.

Newmont Mining Corp. and Freeport, which runs the world’s second-largest copper mine in eastern Indonesia, can keep exporting concentrates, said Wacik, in a turnaround from government comments last year that called for a halt to exports of concentrates, a basic product mix of copper and gold ores that have been crushed, milled and concentrated.

Freeport permit

“More than 60 companies that are planning to process ore domestically will also be allowed exports,” Wacik said, without giving the purity levels that need to be met. “Details will be published later,” he said.

PT Vale Indonesia and PT Aneka Tambang, which mine nickel and have some processing facilities in Indonesia, climbed 5.4% and 2% on Monday after Wacik’s comments.

“Freeport Indonesia has concentrate shipments set for Spain and the Philippines and expects export permits to be issued soon,” its president director Rozik Soetjipto said on Sunday. “Newmont’s local unit is operating normally while it waits for the official regulation document,” spokesman Rubi Purnomo said.

The energy and mineral resources ministry proposed 8 January companies be allowed to continue shipping mineral concentrates for three years. The minimum level of copper in the concentrates may be set at 15%, according to Soetjipto, less than the percentage produced by Freeport and Newmont in Indonesia.

Ore stockpiles

“Indonesia appears to be willing to allow miners who do some degree of processing or have definite plans for smelters in place to keep exporting but is still acting tough with the little guys,” Keith Loveard, a risk analyst at Jakarta-based Concord Consulting, said on Sunday, pointing to around 4,000 companies with mining business licenses.

Aluminum Corp. of China Ltd, the nation’s biggest producer of the metal, said 10 January that it stockpiled bauxite before the ban even as it expected the Indonesian curbs to be diluted because of the potential economic consequences. Indonesia will re-open exports as it has such a big impact, according to Li Haiming, president of the Hong Kong unit.

“The government may not backtrack on bauxite and nickel as it is confident processing plants will come online,” said Shaun Levine, an analyst at consultancy Eurasia Group in Washington.

Nickel prices

Indonesia’s nickel-ore exports are mostly in the form of laterite with 1% to 2% nickel, according to RBC Capital Markets. In China, the ore is processed into so-called nickel pig iron, an alternative to the refined metal.

“Chinese stockpiles of nickel ore are large enough to sustain the output of nickel pig iron through until at least the final quarter of this year,” RBC Capital Markets said on 19 December, citing an estimate from researcher Wood Mackenzie. Indonesia’s industry minister M. S. Hidayat told reporters in Jakarta on 8 January that China has 20 million tonnes of nickel ore in reserves ahead of the ban.

“Nickel may average $15,500 this year,” according to an ABN Amro Bank NV report on 3 January that cited the curbs in Indonesia and improved demand spurred by a global economic recovery. Last year’s average was $15,081 as prices touched a low of $13,205 on 9 July. Refined nickel prices fell 19% on the London Metal Exchange in 2013, dropping for a third year amid a glut to post the worst performance among major base metals.

Export revenue

“The curbs could worsen Indonesia’s 2014 current-account position by as much as 0.3% of gross domestic product,” Citigroup Inc. said last month, while Nomura Holdings Inc. said it will cost at least $5 billion in export revenue. “Nickel and bauxite account for about 48% of total mineral exports,” said David Sumual, economist at PT Bank Central Asia in Jakarta.

“If the ore ban had been implemented in full, the current- account deficit would increase by about 0.6% of GDP,” Sumual said. “Persistent trade and current-account deficits last year made the rupiah Asia’s worst-performer in 2013.”

“I think the rupiah has priced in for the total ban, meaning 0.6% of GDP, while the impact of the ore ban on the current-account deficit should only be 0.25% of GDP,” Sumual said.

The rupiah surged 1.1% to 12,033 per dollar as of 9:55am in Jakarta on Monday, the most in six weeks. “The currency will probably be the main winner given the the export ban was diluted,” Dariusz Kowalczyk, a senior strategist at Credit Agricole CIB in Hong Kong, said in a research note on Monday.

Job losses

The final decision reduced the impact of the rule on the country’s mining industry and economy ahead of national elections this year. Yudhoyono cannot run for a third term and has no clear successor, with Hatta Rajasa, the coordinating minister for the economy, trade minister Gita Wirjawan and state-owned enterprises minister Dahlan Iskan among those vying to be potential presidential candidates.

“It is stereotypical of President Yudhoyono’s leadership style these last few years, namely to wait until the last second to decide on something,” said Eurasia’s Levine. His decision to allow exports of some minerals and avert a possible economic catastrophe when the country can hardly afford it, is commendable.

As many as 800,000 jobs may be at risk from the ban on shipments, the Indonesian Chamber of Commerce and Industry said on 16 December. “It remains to be seen whether the government will be prepared to deal with the domestic fallout,” Loveard said.

“There is also the potential for more challenges in the courts so it is unlikely that this is the end of the story,” Loveard said. Bloomberg

Source:- livemint.com

India's Dec Vegoil Imports Hit 11-Month High Ahead Of Duty Hike

India's vegetable oil imports in December climbed 13 percent to an 11-month high, data from a trade body showed, as poor local supply and fears the country would soon hike duties on overseas purchases of edible oils prompted traders to stock up.



The government finally hiked duties last week - to 10 percent on all refined edible oils, including palm oil, up from 7.5 percent - after fierce lobbying from domestic refiners desperate to curb a flood of cheap imports from Indonesia, the world's leading palm oil producer.



India snapped up 1.07 million tonnes of vegetable oils in December, data from the Solvent Extractors' Association of India (SEA) showed on Monday, the highest since arrivals hit a record 1.2 million in January 2013 and the second-highest level since volume restrictions on imports were removed in April 1994.



"The duty hike expectation led to a surge in the monthly imports," said B.V. Mehta, executive director of the Mumbai-based trade body.



Total overseas purchases of palm oil by India, the world's top importer of vegetable oils, rose 11.5 percent to 863,205 tonnes on month, the data showed. The market had expected a drop in shipments as cold weather solidifies the oil and makes it more expensive to heat up and use.



Imports of crude palm oil rose by a quarter from a month ago to 691,740 tonnes, while imports of the refined variant fell 21 percent to 164,026 tonnes despite being cheaper.



The cost of importing refined palm oil was lower than that for crude palm oil due to Indonesia's duty structure, with the average price of imported refined palmolein at $854 per tonne versus $864 per tonne for crude palm oil, SEA data showed.



Indian import duty is paid on top of these prices."Imports of refined oil may fall in January unless the top palm oil producer adjusts its tax structures," said a Mumbai-based trader.



Last week, an Indonesian minister said the country could review its duty policy after India raised the import duty.But India's refiners want an even higher duty, possibly as much as 14.5 percent, and say last week's move was too little and too late.



India buys palm oil mainly from Indonesia and Malaysia. Palm oil makes up 80 percent of the country's total vegetable oil imports and New Delhi brings in around 60 percent of its annual vegetable oil needs which average 17 to 18 million tonnes.



Increased buying by India has not lent support, however, to benchmark palm futures on Bursa Malaysia, as rising stocks continue to pressure prices there, which fell on Monday to their lowest in over two months.



India's imports of soyoil rose more than three-fold from a month ago to 53,500 tonnes in December, the SEA data showed, as a result of slow crushing and a lower soybean crop which was hit by late rains during the harvest season.India imports small quantities of soyoil from South America. (Editing by Jo Winterbottom and Himani Sarkar)

Source:- in.reuters.com

ITAT directs afresh ALP determination after considering JV agreement; sec. 14A ruled out in business

IT/ILT: ALP determined without verifying relevant JV agreement, to be determined afresh

No extended period to recover duty if no discrepancy was found earlier in audited accounts of assess

GST: Prima facie, when assessees accounts were audited and checked in 2008 by Department and no discrepancy was detected, invocation of extended period of limitation in 2011 may not be justified

Ex-employee of liquidating-co. couldn’t claim his pending salary relating to post wind-up period, sa

CL: Claim of ex-employee of company-in-liquidation towards pending salary after date of winding up would not be maintainable

Maharashtrian VAT Authorities extend due date of audit of developers to give effect to SC’s verdict

GST : Article 366(29A)(B) of the Constitution of India read with section 61 of the Maharastra Vat Act and rule 58 of the Maharastra Vat Rules, 2005 - Works Contract - Amendment in rule 58 in line with judgment in Larsen & Toubro's case is pending consideration and till then, due date for filing audit report is extended (except in case of builders opting for composition scheme)

Haryana VAT - Notices may be sent vide e-mail/fax

GST : Rule 79 of The Haryana Vat Rules, 2003 - Notices, Etc. May be Sent Via E-Mail/Fax, Etc. - Form of Declaration in Case of SEZ also Changed

Rule 8D to be triggered on assessee’s failure to establish that indirect exp. has no bearing on exem

IT : Onus to establish that indirect expenditure has no bearing on income not forming part of total income is squarely on assessee, failing which prescription of rule 8D, subject of course to expenditure actually incurred and claimed in computing total income, would follow

No writ maintainable against show cause notice in which factual disputes are involved: HC

Excise & Customs : High Court, in its writ jurisdiction, cannot interfere at stage of issuance of show-cause notice where there are disputed questions of facts, more so, because there is an effective alternative remedy under provisions of Customs/Excise/Finance Act

Market fees levied under Bihar Agricultural produce Act not a tax for purpose of sec. 43B

IT : Section 43B, as amended by Finance Act, 1988 has, no retrospective application

Mere filing of I-T return doesn’t bar advance ruling unless scrutiny notice is also issued before fi

IT/ILT : Advance ruling application was to be admitted even if return of income was filed earlier and, scrutiny notice was issued after filing of advance ruling plea

On assessee’s failure to explain unaccounted stock, sec. 69B additions righty made by appellate auth

IT: Where in course of survey, assessee admitted that he was unable to explain unaccounted stock, authorities below were justified in making addition in respect of same under section 69B

Department can’t cancel export-import license without giving opportunity of being heard to assessee

Excise & Customs : Before cancelling assessee's Import Export Code on account of non-fulfilment of export obligation, an opportunity of being heard must be granted so that assessee may substantiate its claim as regards fulfilment of export obligation

Filing of return before due date isn’t a pre-requisite for availing of immunity from concealment pen

IT : Where assessee surrendered income during search, explained manner in which it was derived in statement and paid tax as well as interest thereon, it was not necessary to file return before due date to get immunity from penalty for concealment under clause (2) of Explanation 5 to section 271(1)(c)

Order passed by Tribunal on anti-dumping matters is appealable either before High Court or Supreme C

Excise & Customs : Since provisions of Customs Act relating to appeals are incorporated in Section 9A(8) of Customs Tariff Act, order of Tribunal passed in appeal under Section 9C of Customs Tariff Act would be subject to appeal, either to Supreme Court or to High Court

No reassessment beyond four years due to TDS default if assessee had disclosed all facts during asse

IT: Where assessee disclosed all material facts necessary for completing assessment, in view of proviso to section 147, Assessing Officer could not initiate reassessment proceedings after expiry of four years from end of relevant assessment year on ground that assessee had made payments of salary to its employees rendering services abroad without deducting tax at source and, thus, amount so paid was liable to be disallowed under section 40(a)(iii)

Issuance of scrutiny notice before filing plea of advance ruling bars its admission

IT/ILT : Bar on admission of advance ruling application under section 245R(2) attracted if notice under section 143(2) issued before filing of application

Receipt of old TV by dealer under exchange scheme tantamounts to purchase; liable to purchase tax

CST & VAT : Where assessee, a dealer of TV, had provided new TV sets in lieu of old TV sets on payment of additional consideration, such transaction amounted to purchase of old TVs and sale of new TVs liable to purchase/sales tax as appropriate

No exemptions if assessee failed to prove source of money camouflaged as agricultural income

IT : Where assessee failed to explain source of agricultural income claimed to have been earned by it, no exemption could be allowed in respect of such income

Grant of Injunction by DRT conditional upon deposit of certain sum doesn’t ipso facto constitutes a

Banking Laws : Where DRT in an interlocutory application taken out in an appeal under section 17 of SARFAESI Act determines prima facie amount of debt due by appellant/debtor, same constitutes debt due by appellant as determined by DRT for purpose of second proviso to section 18 of SARFAESI Act

No question of law arises if discretion exercised by Tribunal in pre-deposit cases isn’t unjustified

Cenvat Credit : Where discretion exercised by Tribunal cannot be said to be unjust or irrational, it does not give rise to any substantial question of law especially when assessee has not set up a case of financial hardship

Order passed by CIT merely on basis of factors not related to controversy deserves to be remanded, s

IT: Where Commissioner had rejected assessee's application under section 12AA for grant of registration and Tribunal remitted matter to Commissioner for decision afresh, since Commissioner had ignored relevant facts and considered factors that were not germane to controversy, order of Tribunal remitting matter to Commissioner could not be faulted

Mere Excise notice isn’t sufficient to prove evasion of VAT; HC quashed turnover escaping assessment

CST & VAT : Merely because Excise Department issued a show-cause notice, that cannot be a ground to presume and conclude that there was evasion of excise duty implying thereby that there was also evasion of tax under VAT Act so as to constitute 'reason to believe' for purposes of assuming power to assessee 'turnover escaping assessment'

No coercive action against assessee for tax recovery until CIT(A) decided fate of stay application,

IT : Coercive action should not be taken against assessee for recovery of dues till decision of Commissioner (Appeals) on assessee's stay application

Issuing multiple demand notices for same period harasses assesses; HC directs CBEC to curb this prac

Service Tax : Issuance of different demand notice for same period must be avoided, as it leads duplication and inconvenience/harassment of assessee; accordingly, CBEC was directed to consider issuance of circular/order that repeated show cause notices are only issued when circumstances justify and are permitted under law

State Cos Export 3 Lakh Tonnes Of Wheat From Fci Godowns

State-owned trading firms have so far exported about 3 lakh tonnes of wheat from FCI godowns out of 20 lakh tonnes allowed by the government. “About 3 lakh tonnes of wheat has been shipped so far,” a senior government official said.



In August last year, the Cabinet Committee on Economic Affairs (CCEA) had allowed 20 lakh tonnes of wheat exports till June 2014. The government decided to export wheat as the Food Corporation of India (FCI) had surplus stocks.



According to the official, State Trading Corporation of India, PEC and MMTC have so far floated tenders to export about 17 lakh tonnes of wheat, of which 7 lakh tonnes have been awarded.



The government had lowered the floor price for wheat exports to $260 per tonne from $300 per tonne. The US, Canada and Australia were selling the same quality of wheat in the range of $270-275 a tonne, he said. The FCI expects to earn more than Rs 3,400 crore from wheat exports in the current financial year.



“With heavy snowfall in USA and Canada, there has been a logistic jam in these countries, so in coming days, prices quoted for India wheat are likely to go up,” a trader said.



So far, the average price at which Indian wheat has been exported is about $281 per tonne, with the highest at $289.9 per tonne in November last year for shipment from Krishnapatnam port.



The government had allowed export of 4.5 million tonnes of wheat from FCI godowns during the previous financial year, of which PSUs sold about 4.2 million tonnes at an average price of $311.38 per tonne for over Rs 7,000 crore.



Recently, a Parliamentary committee had suggested there is an urgent need to reduce the food subsidy burden and recommended that the government should fix an upper limit for foodgrain storage.FCI is the government’s nodal agency for procurement and distribution of foodgrains.

Source:- thehindubusinessline.com

Oil And The Momentum Of ‘Ifs And Buts’

The state of global demand and supply balance, cost of extraction and indeed the floor that producers tend to target, all impact the crude market prices significantly.



In this scenario, estimating the current cost of extracting crude in different regions is a hazardous assignment. This is but of significant importance as many now insist that low cost production peak has arrived. The world is graduating into a new phase — where prices need to be at a higher level to sustain output.



The London based Centre for Global Energy Studies (CGES) in a study published early last year underlined that about one third of the worldwide supply of crude oil (still) costs less than $10/ oil barrel (bbl) and nearly 90 per cent costs less than $20/bbl to produce.



In defense of its study, the CGES argued that when the price of oil was $20-30/bbl, exploration and development progressed successfully even in the most expensive areas.



It added that although the rate of cost increase has exceeded inflation, the fully built-up costs of developing and producing conventional oil, excluding taxes and royalties, in most region do not exceed $30/bbl. Even in the Canadian oil sands costs are not higher than $50/bbl, the study estimated.



What measures up to the cost of production? The CGES study says that a measure of the total cost to produce crude oil and natural gas is the upstream costs. The upstream cost includes lifting and finding costs. Lifting costs are the costs to operate and maintain oil and gas wells and related equipment and facilities to bring oil and gas to the surface.



Finding costs are the costs of exploring for and developing reserves of oil and gas and the costs to purchase properties or acquire leases that might contain oil and gas reserves.



Now as per the Energy Information Agency (EIA), the total upstream cost (lifting cost and finding cost) for producing crude oil and natural gas, 2007–2009, in 2009 dollars per barrel of oil equivalent terms, averaged $33.76 in the US. Onshore it was $31.38, whereas offshore, the cost turned out to be $51.60.



In Canada, the average was $24.76. Costs in Africa averaged at $45.32. Central and South America then averaged $26.64. The lowest cost region was the Middle East, averaging then at $16.88/bbl.



And one can’t help pointing out here is that not all the frontiers in the Middle East have been explored yet. Saudi Arabia could easily add another 150 billion barrels to its proven crude reserves. Iraq remains a virgin territory and has the potential to raise its output significantly. Strangulated by embargoes and sanctions, Iranian energy sector is far from optimal.



Market prices could definitely influence output globally. What indeed, if the markets melt? US oil production has soared, leading some forecasters to predict an impending glut.



A steep fall in oil prices would choke off production at some US fields and quickly tighten supplies, Harold Hamm, chief executive of Continental Resources, the largest producer in the Bakken shale of North Dakota told the Financial Times. “If an oversupply of oil drove the price down to $70 a barrel, it would ‘hurt’ the US industry, but would quickly correct itself because it would make marginal production uneconomic.”



Hamm then argued that prices were likely to remain around $90 to $100 a barrel for US crude, sustaining strong growth in American production. “It doesn't need to be $150 or $140,” he told the Financial Times.



This leads us to another interesting issue. What floor could oil producers afford to sustain in current circumstances. Bank of America Merrill Lynch says its preliminary spending projections for2014 place, Organisation of the Petroleum Exporting Countries kingpin Saudi Arabia’s fiscal breakeven oil price at $85 a barrel.



“This is $5 higher than the floor we had previously anticipated policy-makers would be looking to defend,” the bank said in a recently released report.



According to BofA Merrill Lynch, the level of oil production this year also provides a source of uncertainty, some of which is linked to regional geopolitical developments.



The energy world continues to oscillate between ifs and buts. And that makes it all an interesting, exciting and indeed frustrating — at times

Source:- dawn.com

Glencore Copper Sale Has Asx Firms On Alert

Speculation that the Beijing-ordered sale by Glencore Xstrata of its $US6 billion ($A6.6 billion) Las Bambas copper project in Peru is imminent has placed ASX-listed companies PanAust Ltd, Highlands Pacific Ltd and Indophil Resources on high alert.



The sale of Las Bambas -- a condition of Chinese approval of last year's merger between the London-listed Glencore and Xstrata -- affects the plans of all three companies in their multi-billion-dollar copper/gold projects in Papua New Guinea (PanAust and Highlands) or in The Philippines (Indophil).



Merrill Lynch last week tipped that the sale of Las Bambas would be announced "any day", with the market continuing to have Hong Kong-listed and Melbourne-managed MMG as the most likely buyer in a deal.



Its 72 per cent owner, China Minmetals Corporation (Minmetals) is one of China's biggest multinational state-owned enterprises.



MMG is best known in this market for acquiring the assets of OZ Minerals other than the Prominent Hill copper-gold mine in South Australia, when it was forced into a drastic debt restructuring in 2007.



MMG's operations include the Century zinc mine in Queensland, the Rosebery zinc operation in Tasmania and the Golden Grove base and precious metals mines in Western Australia.



MMG would not comment on the Las Bambas speculation on Friday.MMG does not have the financial capacity to take on Las Bambas itself but Minmetals does, thanks to access to Chinese import/export financing.



MMG also recently deferred a development decision on its $US1.5 billion Dugald River zinc project in Queensland.



In the meantime, PanAust, Highlands and Indophil are anxiously awaiting an outcome of the Las Bambas sales process.



In the case of PanAust and Highlands, the deal in which PanAust replaces Glencore in the proposed $US1.8 billion modified development plan for the Frieda River copper/gold project in PNG hinges on Glencore meeting Beijing's condition that it reaches agreement to sell the Las Bambas project before September 30 this year.



Should Glencore fail to complete the transfer of ownership by June 30 next year, the Chinese merger approval requires it put its 80 per cent stake in Frieda River up for auction.



PanAust has since struck a deal to acquire Glencore's stake for $US75 million as well as forming an alliance with the other partner, Highlands Pacific.



However, the deal remains conditional on Glencore meeting the Chinese condition on Las Bambas.



The Melbourne-based Indophil faces similar uncertainty, with Glencore also required to auction off its 62.5 per cent stake in the Tampakan copper/gold project in The Philippines should Las Bambas not be sold.



Glencore also owns a 13.1 per cent equity stake in Indophil.



Indophil owns a 37.5 per cent interest in Tampakan.Tampakan, like Frieda River, is one of the biggest undeveloped copper/gold orebodies in the world.

Source:- businessspectator.com

Natural And Synthetic Diamonds To Be Assigned Separate Hs Codes

India's Ministry of Commerce has decided to separate the Harmonized System Codes (HS Codes) for lab-grown and natural diamonds, respectively, in response to recent incidents of undisclosed lab-grown diamonds being mixed with parcels of natural diamonds, reports .

The issue will reportedly be finalized during a meeting on Monday between representatives of India's Gems & Jewellery Export Promotion Council (GJECP) and the Directorate General of Foreign Trade (DGFT), which is responsible for assigning the HS Codes to different objects. Currently, the trade for natural and lab-grown diamonds is done through the same HS Code.

"Due to the same HS Codes being used for natural and lab-grown diamonds, there have been cases of lab-grown diamonds being exported overseas in the name of naturals. This is raising a big question on India's trust value. If the HS Codes are different then such incidences can be barred easily," said GJEPC Vice Chairman Pankaj Parekh, as quoted by the new

Source:- diamondintelligence.com

Iron Ore Price Drops To 5-Month Low Despite Record Chinese Imports

The price of iron ore slumped to a 5-month low Friday, despite data showing Chinese imports of the steelmaking raw material hit a new record in 2013.The benchmark CFR import price of 62% iron ore fines at China's Tianjin fell to $130.70 a tonne on Friday, a level last seen at the early August and down more than 3% since the start of the year according to data supplied by The Steel Index.



China's imports of iron ore in December fell back to 73.4 million tonnes from November's record-setting pace of 77.8 million tonnes, but for 2013 as a whole imports hit an all-time high of 820 million tonnes.



At 10% growth that's an ever better performance than 2012 when imports grew 8.4%. The rise in imports comes despite Chinese domestic iron ore output climbing more than 8% to 1.3 billion tonnes in the first 11 months of last year.



China now consumes almost three-quarters of the global seaborne iron ore trade which for 2013 is estimated at just over 1.1 billion tonnes as its blast furnace continue to pump out steel at a record-setting rate of 2.1 million tonnes per day, a 9.4% increase over 2012.



Research by Australia's Bureau of Resources and Energy Economics (BREE), the country's official forecaster predicts Chinese iron ore imports will grow 7.4% or more than 60 million tonne in 2014 as high quality ore from Brazil, South Africa and Australia continue to edge out low iron content domestic mining.



But a slowdown in Chinese steel production this year appears inevitable amid overproduction, a crackdown by authorities on the industry over environmental concerns and weaker domestic demand.



Clouding the outlook further is a rise in Chinese iron ore stockpiles to 88.6 million tonnes in December, up a whopping 21% from a year ago



Clouding the outlook further is a rise in Chinese iron ore stockpiles to 88.6 million tonnes in December, up a whopping 21% from a year ago and up 26% since January 2013.



Another factor limiting the upside for iron ore is an expected flood of new supply that will overwhelm Chinese demand even if it grows at the same pace as in 2013.



This year the world's top exporter Australia will increase cargoes a whopping 22.1% to 709 million tonnes as projects by Rio Tinto (LON:RIO), Fortescue Metals Group (ASX:FMG) and BHP Billiton (LON, ASX: BHP) come on stream.



Brazil, led by world number one iron ore miner Vale (NYSE:VALE), is set to up exports 9.1% to 352 million tonnes.



India, which has seen exports fall from 120 million tonnes to close to just 11 million tonnes this year, will also re-enter the market as a self-imposed ban on exports expire and stockpiles are sold on.

Source:- mining.com

Coal Imports Into India Cross 140 Million Tonne Mark In 2013

Based on preliminary data from major ports, imports of various types of coal and coke into India during 2013 have totalled 141.509 million tonnes



While thermal coal import, estimated at 107.8 million tonnes, accounted for about 76%, coking coal import is estimated at about 30.7 million tonnes. The other products like met coke, pet coke and coke nut accounted for about 2%



Australia remained the top supplier of coking coal with about 84% share. For thermal coal Indonesia was the major supplier with about 75% share. For met coke, Chinese dominance at about 56% was somewhat diluted with supplies coming from 9 other nations.



The highest monthly imports took place in July 2013 at about 13.4 million tonnes with monthly average for 2013 at 11.79 million tonnes per month



Ports on Western Coast received about 69 million tonnes, followed by Eastern Coast at about 50 million tonnes and Southern Coast at 21 million tonnes. The highest imports occurred at Mundra 33.1 million tonnes, followed by Krishnapatnam at about 18.6 million tonnes, Ennore at 10.4 million tonnes, Paradip at 9.3 million tonnes, Haldia at 7.7 million tonnes, New Mangalore at 7.3 million tonnes, Mormugao at 7.3 million tonnes, Dahej at 6.9 million tonnes, Vizag at 6.4 million tonnes and Kandla at 5.2 million tonnes. The balance 14 ports accounted for 29.2 million tonnes



A total of about 2300 number of vessels were unloaded ie about 50 per week at various ports with an average cargo size of 60,000 tonnes per vessel

Source:- steelguru.com

ITAT goes in favour of uniformity; case restored to TPO as same issues already pending before it of

IT/ILT : TP adjustment with regard to fees, expenditure, etc. should be uniform with view taken for other years

Tax rates applicable to normal sales apply to deemed sales under work contract as well, rules HC

CST & VAT : In absence of any specific rate of tax applicable for transport of property in goods involved in execution works contract, rate of tax applicable to normal sale of each class of goods involved shall apply to deemed sale under works contract

SC: Prosecution on successive dishonour of cheque is valid if made as per Negotiable Instrument Act

Negotiable Instruments Act : Prosecution based on second or successive dishonour of cheque is permissible if requirements stipulated under proviso to section 138 of Negotiable Instruments Act are satisfied

No concealment penalty to punish an addition under normal provisions of I-T Act if assessee was liab

IT : When taxable income is computed under section 115JB, no penalty can be imposed under section 271(1)(c) for additions made under normal provisions

Time spent in pursuing matter before wrong forum excludible to compute time-limit for filing revisio

Excise & Customs : Section 14 of Limitation Act, 1963 is applicable to revision proceedings before Central Government under Customs/Excise laws and, therefore, time spent in pursuing remedy before wrong forum, bona fide, by assessee would be excludible in computing time-limit for filing revision application

No depreciation on sale and lease back of assets as loan transaction disguised as lease transaction

IT: Where assessee claimed depreciation on boiler leased out to sister concern of seller, in view of fact that boiler was attached to land and was still functioning in seller's factory, revenue authorities rightly held that it was a case of mere loan transaction and, thus, assessee's claim was to be rejected

HC orders confiscation of Foreign currency attempted to be illegally smuggled in violation of FEMA

Excise & Customs: Where foreign exchange is attempted to be illegally exported without declaration and contrary to prohibitions imposed under Foreign Exchange Management Act, 1999 and regulations made thereunder, said currency is liable to be confiscated under section 113(d) of Customs Act, 1962

Commission paid to sub-brokers rightly disallowed by revenue as they weren’t rendering any services

IT : In view of finding of fact recorded by revenue authorities that no services were rendered by sub-brokers to assessee, and no amount was paid to them either during year or even later, commission claimed to have been paid to sub-brokers was not allowable

Order of adjudicating authority to levy ST Penalty after considering period of strike not to be inte

Service Tax : Where adjudicating authority has exercised discretion to levy penalty under sections 76 and 77 of Finance Act, 1994 in reasonable manner and not levied penalty for period when there was strike/unrest, such order cannot be altered by Tribunal

Business receipts of trust over fixed limit would merely bans IT relief, yet its registration couldn

IT: Where gross receipts of assessee, a charitable institution, from its business activities exceeds limit of Rs. 10 lakhs, assessee will not be entitled for exemption or other admissible tax benefits for relevant year only but it does not result in cancellation of its registration as charitable institution

Appeal dismissed by Commissioner (A) to be restored on payment of pre-deposit by assessee: HC

Excise & Customs : Cause of justice demands a consideration of appeal on merits rather than to shunt assessee out for some part of delay attributable to it and some part of technicalities that may otherwise operate; hence, appeal dismissed by Commissioner (Appeals) for want of pre-deposit was directed to be restored on assessee pre-depositing entire demand

Pendency of similar misconduct plea in SC won’t delay other proceedings; HC dismissed PWC’s stay req

IT: Where during pendency of proceedings before Disciplinary Committee in respect of irregularities committed by petitioner, a Chartered Accountant, while conducting audit of bank, provisions of Chartered Accountant Act, 1949 relating to misconduct and penalties were amended, mere fact that in a similar case issue of applicability of amended or unamended provisions was pending adjudication before Supreme Court, it could not be a ground to adjourn disciplinary proceedings sine die

One who violates norms of SEBI to be penalized even if turnover of scrip is miniscule, says SAT

SEBI: One who has violated provisions of SEBI Act and regulations made thereunder must suffer even if turnover in scrip in which violation are found is miniscule compared to total turnover of that person

Revenue couldn't demand stay on Tribunal order, which was acted upon, even if it caused loss to reve

CST & VAT : Where Tribunal judgment under Gujarat VAT Act was in favour of assessee on merits, such judgment could not be stayed, especially when it had been acted upon; but, department was permitted to reassess VAT in eventuality of Tribunal judgment being reversed by HC

‘Toll roads’ and ‘bridges’ to be deemed as buildings for depreciation purposes, rules HC

IT : Toll roads and bridges can be considered as building for purpose of granting depreciation

Application seeking extension of time for making pre-deposit is to be rejected if not supported by r

Excise & Customs : Where, in application seeking extension of time for making pre-deposit, assessee did not offer any explanation at all for delay or for seeking further time in deposit, said application was liable to be rejected

AO to serve sec. 143(2) notice if it rejects return filed by assessee pursuant to notice of block as

IT : A notice under section 143(2) is necessary, where for any reason AO repudiates return filed by assessee in response to notice under section 158 BC relating to block assessment

Printing and lamination of duty paid films to be deemed as 'manufacture' for Central Excise

Excise & Customs : Printing bare or metalized duty-paid polyester film purchased from market and laminating such printed films in two layers or three layers with help of adhesive or another chemical, amounts to manufacture under section 2(f) of Central Excise Act, 1944

RBI lists out permissible capital account transactions in foreign currency for residents

FEMA/ILT : Clarifications on Provisions Under Section 6(4) of Foreign Exchange Management Act, 1999

RBI allows payments of Utility bills, taxes and EMIs of loans in India under cross border inward rem

FEMA/ILT : Memorandum of Instructions for Opening and Maintenance of Rupee/Foreign Currency Vostro Accounts of Non-Resident Exchange Houses

NRIs allowed to operate resident bank accounts as joint holders with residents on “Either or Survivo

FEMA/ILT : Liberalization of Resident Bank Account Maintained by Residents in India Joint Holder

TRO had to unfreeze assessee’s property as it had no tax due pursuant to orders of appellate authori

IT : Where entire tax liability of assessee had become nil pursuant to order of Tribunal and said order had been given effect to by Assistant Commissioner, TRO has to release assessee's property from attachment

Comparables in respect of which partial data is available to be excluded for ALP determination

IT/ILT : Companies having high profit/loss cannot be comparables

Outward transportation from factory to customer's premises isn't eligible for credit

Cenvat Credit : Services used for purpose of delivering goods at destination of customer were neither covered by definition of input service prior to 1-4-2008, nor is same covered on or after 1-4-2008; expenses incurred after place of removal are not eligible for credit

HC dismissed winding up petition as claim of petitioner was already settled in company petition

CL: Winding up petition against respondent-company would not be maintainable when amount due to respondent was already settled in another company petition

SEBI permits utilization of sum disgorged from wrongful gain to restitute eligible investors

SEBI/INDIAN ACTS & RULES : SEBI (Investor Protection and Education Fund) (Amendment) Regulations, 2014 – Amendment in Regulations 4 & 5

SEBI amends CIS norms; deemed CIS entitles one for registration, bar on cash payments for subscripti

SEBI/INDIAN ACTS & RULES : SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014 – Amendment in Regulations 2 & 11; Insertion of Regulations 4A and 74A & Substitution of A Specified Term

RBI devises pricing norms for FDI instruments with optionality clause

FEMA/ILT : FDI - Pricing Guidelines For Fdi Instruments With Optionality Clauses

Revenue couldn't cast doubt on legality of freight charges merely due to unreliable statements of tr

IT : Where assessee engaged in transportation of goods, through trucks owned by other truck owners, claimed deduction of freight charges payable, in absence of any material on record throwing doubt on genuineness of amount claimed, Assessing Officer was not justified in rejecting said claim merely on basis of statements of some truck owners which were subsequently not found creditworthy

No need for obtaining NOC from Entertainment Tax Office prior to holding of entertainment event

CST/VAT : In absence of any provision requiring NOC/prior approval from Entertainment tax office prior to holding of entertainment event by way of fashion shows, etc., such a requirement cannot be insisted upon; if department is dissatisfied or in case of dispute, assessment mechanism can be put into motion

Deemed transfer under income-tax on handing over of possession of property in part performance of ag

IT : Under Income-tax Act, when possession of property is handed over to purchaser towards part performance of sale agreement, there is a transfer

Order rejecting application for ST amnesty scheme is appealable; circular holding contrary is invali

Service Tax : After incorporation of Service Tax Voluntary Compliance Encouragement Scheme into Finance Act, all other provisions of Act apply to proceedings under scheme; accordingly, an order rejecting assessee's application under section 106(2) of Finance Act, 2013 is an appealable order and CBCE circular holding to contrary was incorrect

No tax on receipt of booking amount by builder as in his case profit would arise only on transfer of

IT : Assessee being a developer of project, profit in its case would arise only on transfer of title of property and, therefore, receipt of any advance or booking amount could not be treated as trading receipt of year under consideration

HC admits writ against order even after dismissal of appeal by Commissioner (Appeal) due to time con

Service Tax : Even after assessee's appeal against adjudication order had been dismissed by Commissioner (Appeals) as time-barred, High Court exercised its writ jurisdiction under Article 226 of Constitution and granted ad interim stay

Filing of sec. 264 revision petition doesn't deprive assessee from filing an appeal before CIT(A)

IT : Filing of a revision petition under section 264 can not be a bar for filing of an appeal before appropriate authority

Assessee's defence focusing on cause of dispute to be considered first before ordering pre-deposit :

Cenvat Credit : Where assessee strongly relies upon a judgment in his favour, which is his basic defence going to root of dispute, Tribunal must consider applicability of such judgment prior to making order of pre-deposit under Excise section 35F

CIT can't make sec. 263 revision merely due to his dissatisfaction with manner of assessment

IT: Where Assessing Officer had made necessary enquiry about bank transactions and after being satisfied from assessee's explanation that such transactions were genuine, he passed order under section 143(3), a mere disagreement or dissatisfaction of Commissioner over manner of assessment could not be a basis for revision of order under section 263

Assessee's request to cross-examine the witness was to be disposed off first prior to adjudication

Service Tax : Where assessee seeks cross-examination of witnesses, adjudicating authority must first dispose of such request by way of separate order and then, proceed with adjudication

Sale proceeds of carbon credit to be deemed as capital receipt

IT : Receipt on account of sale of carbon credits is to be considered as capital receipt

Cotton Prices Up On Short Phutti Supply

Cotton prices bounced back to overnight level on Wednesday because of short phutti (seed cotton) supply and ginners demanding higher rates.However, trading activity failed to pick up as spinners are not ready to pay higher prices.



Floor brokers said that in the absence of buying and selling activity cotton market continues to be dull and listless.A large participation of Pakistani textile sector in Heimtexil fair being held from Jan 8 to 11 in Frankfurt, Germany, is another reason which has pushed cotton prices up, brokers added.



They added that the expectations that 226 companies from Pakistan displaying their textile products in the fair could get large export orders are presently inducing sentiment.



The world cotton markets also remained firm where New York cotton market closed higher for all future contracts. Cotton prices in India also rose and during last couple of days gained around 10 cents per lb from 81-82 cent per lb to 90-91 cent per lb.



The Karachi Cotton Association (KCA) revised its spot rates upward by Rs50 to overnight level of Rs7,000 per maund. However, trading activity on ready counter continues to be slow and restricted.



The following deals were reported to have changed hands on ready counter: 200 bales from station Rahimyar Khan at Rs7,000, 1000 bales from Fort Abbas at Rs7,000, 200 bales from Dharanwala at Rs7,040, 200 bales from Faqirwali at Rs7,040, 3,000 bales from Khanewal at Rs7,100, 800 bales from Obaro at Rs7,300 and 1,000 bales from Mianwali at Rs7,350.

Source:- dawn.com