HC grants Sec. 80-IA relief on gains attributable to captive consumption of power generated from win

IT : Assessee was entitled to claim of deduction under section 80-IA in respect of income relatable to power generated by its own wind mill that was consumed by assessee

Society receiving/lending money to its members only couldn’t be held as co-operative bank to deny se

IT: Where assessee was not a credit co-operative bank but a credit co-operative society, deduction under section 80P could not be denied by applying exclusion clause of sub-section (4) of section 80P

HC directs AO to levy tax on interest received from banks after deducting related exp. incurred ther

IT : Where Assessing Officer treated interest received from bank as income in hands of assessee and, he did not consider expenditure incurred in earning said income while computing income, matter was to be remanded back

No addition on basis of remand report by AO if he failed to verify authenticity of facts on merits

IT : Where Assessing Officer submitted remand report after a gap of more than six months and said report did not deal with merits submitted by assessee, addition was not to be allowed

Co. engaged in e-publishing business can't be chosen as comparables for ITES service provider

IT/ILT: A comparable company should be functionally similar and there should not be any extraordinary events like merger in said company during relevant year

All granite crushing units of one assessee must be treated as a single unit to levy VAT on compounde

CST & VAT : Kerala VAT : Where assessee was engaged in business of granite metal through operation of two granite crushing units and it opted to pay compounded tax under section 8(b) of Kerala VAT Act, both units should be treated as a single unit and computation of tax must necessarily be by reckoning all crushers employed in units

Every suit for recovery of money from Sick Co. doesn't require prior permission of BIFR, rules HC

SICA: Every suit for recovery of moneys does not require prior permission under section 22

Shareholder's name rightly struck off as transfer of shares in lieu of consideration hadn't proved t

CL : Where petitioner-shareholder had received sale consideration in respect of shares transferred in favour of respondents, petitioner was party to such sale transaction and had failed to prove that impugned transfer of shares was invalid, ineffective, void and ultra vires and, therefore, petititoner's name was removed from register of members of company for sufficient cause and she being not a shareholder/member on date of filing of petition under sections 397 and 398 was not eligible to file

SEBI does away with requirement of separate registration for acting as participant in multiple depos

SEBI/INDIAN ACTS & RULES : SEBI (Depositories and Participants) (Amendment) Regulations, 2014 – Amendment in Regulation 16 & Form E and Insertion of Regulation 20AB

CBDT issues new guidelines for compounding of offences

IT : Guidelines for Compounding of Offences under Direct Tax Laws, 2014

Sec. 127(3) denying hearing on transfer of case in same city won’t apply on transfer of case to othe

IT: Where case was transferred from one city to another city provisions of sub-section (3) of section 127 would not apply; opportunity of hearing to be granted

Assessee couldn't opt statutory remedy of filing appeal after its revision petition under Sec. 264 w

IT : Where assessee had failed to produce any documentary evidence with regard to proof of agricultural land and sale of agricultural produce in order to substantiate his claim that income was agricultural income claim of assessee could not be accepted

HC reduced penalty as assessee wasn't habitual defaulter and penalty was levied on it for the first

CST & VAT : Uttarakhand VAT : Where assessee had not deposited admitted tax along with returns and thereupon Tribunal imposed penalty at rate of 20 per cent, since it was stand of assessee that first time it was levied with penalty, rate of penalty was reduced to 15 per cent

CBEC allows transfer of cases admitted in SetCom to "call-book"

EXCISE & CUSTOMS LAWS : Inclusion of Cases Filed in the Settlement Commission in the Call-Book

Govt. notifies 'Reliance Retirement Fund' as pension fund for purpose of Sec. 80C deduction

IT : Section 80C(2)(XIV) of the Income-Tax Act, 1961 - Deduction in Respect of Life Insurance Premia, Deferred Annuity, Contributions to Provident Fund, Subscription to Certain Equity Shares or Debentures Etc. - Notified Pension Fund

Govt. notifies certain entities for purposes of Sec. 10(46) exemption

IT : Section 10(46) of the Income-Tax Act, 1961 - Exemptions - Statutory Body/authority/board/commission

Govt. announces Citizens/Clients Charter of Department of Economic Affairs

IT/CL : OTHERS : Citizens/clients Charter of Department of Economic Affairs (Ministry of Finance)

Govt. keen on bringing "Good Governance": takes up initiative to launch an e-book on "Good Governanc

IT/CL : OTHERS : E-Book on Good Governance : Ministry of Finance

'Dried Singhada' was exempt from tax as it was covered under 'Madhya Pradesh Vanijyik Kar Adhiniyam,

CST & VAT : M.P. Vanijyik Kar : Dried singhada was covered by Entry No. 16 of Schedule I of Madhya Pradesh Vanijyik Kar Adhiniyam and would be exempt from payment of tax

Order by Third Member of ITAT tantamounted to order of Special bench; division bench couldn't commen

IT: Where order is passed after referring matter to Third Member, it is an order as if it is passed by Special Bench; hence, Division Bench cannot comment upon it

SAT upheld penalty on appellants as they failed to make disclosure of acquisition and sale of one la

SEBI : Where appellant, a promoter, director and compliance officer of company, did not disclose about acquisition and sale of one lakh shares of company, there being violation of Regulation 13(4) of SEBI (Prohibition of Insider Trading) Regulations, 1992, SEBI was justified in imposing penalty on appellant

Rule 27 doesn't allow fresh relief before ITAT after it was denied by CIT(A) and it wasn't raised be

IT : Where assessee had failed to explain credit in question to be related to sale of goods; addition of said amount as cash credit was to be sustained

Share application money couldn't be treated as unexplained if shareholder conceded it as his investm

IT : Where share applicants of assessee-company had appeared when summons were issued and they had accepted their investment, share application money could not be treated as cash credit in hands of assessee

Manufacturer of paper insulated wire got sec. 80-IC relief as it was different from its raw material

IT: Where assessees were manufacturing paper insulated wires and strips of copper and aluminium which were different from its raw material, same was manufacture in terms of section 80-IC, hence assessee were eligible to deduction

Assessee wasn't entitled to interest on interest when interest was paid to him alongwith tax refund

IT: Where interest is paid along with amount payable as refund, there is no question of payment of interest on interest

No denial of sec. 11 relief to trust on alleged benefits accrued to interested persons without givin

IT: Without giving details of prohibited beneficiaries, exemption cannot be denied to a society, matter was to be readjudicated

AO couldn't reduce subsidy from cost of asset in current AY when it was received in subsequent year

IT : Where amount of subsidy had actually been received by assessee in next financial year, actual cost of plant and machinery could not be reduced during year under appeal thereby reducing claim of depreciation

Co. providing geospatical services isn't comparable to a Co. engaged in call center services for TP

IT/ILT: A company to be selected as comparable should have comparable services, comparable revenue earning and complete segmental details when it is involved in diverse nature of services

Sec. 68: Expression 'any sum found credited in books of account' covers both credit and debit entrie

IT : Expression 'any sum is found credited in books of assessee' in section 68 not only means all entries on credit side but also entries on debit side in books of account

Loan received by shareholder taxed as deemed dividend as it wasn’t covered under exclusions of sec.

IT : Loan advance received by Managing Director from company would be deemed dividend

Telecom charges incurred in forex are excludible from export turnover and total turnover for sec. 10

IT : While computing exemption under section 10A, expenses on telecommunication, insurance and other heads incurred in foreign exchange are to be excluded from both, export turnover and total turnover

Transfer of loan to spouse through journal entry won’t be deemed repayment of loan in violation of s

IT : Transfer of loan to spouse through journal entry won’t be deemed repayment of loan in violation of section 269T

Issue regarding excisability of gasses vented into air is appealable before Supreme Court and not Hi

Central Excise : If issue involved is regarding excisability to tax on gasses which are vented into air, appeal lies to Supreme Court and not before High Court

Interest on delayed payment by DISCOMs wasn't an income of assessee, as agreement was effective from

IT : Where power purchase agreement between assessee-company and DISCOMs was effective from subsequent assessment year, assessee was not entitled to claim any interest an delayed payments from DISCOMs for year under consideration

No concealment penalty when assessee had wrongly claimed deduction of prior period exp. under a bona

IT: Where assessee had given truthful and cogent explanation without concealing facts why interest relating to earlier years, which was capitalized, had been accounted for as a liability in current years, penalty under section 271(1)(c) was not to be levied

Issue as to whether provision of service amounted to 'export' isn't appealable before High Court

Service Tax : Issue 'whether provision of service amounted to 'export' of service and whether therefore, it was liable to service tax' is not appealable before High Court; said issue is appealable only before Supreme Court

Co. couldn't reject redemption on ground of limitation as it had disclosed debenture holders in annu

CL : Where application filed by debentureholders under section 117C(4) of 1956 Act was resisted on ground that it was barred by limitation in terms of Part X, article 113 of Limitation Act, 1963, since names of debentureholders were duly disclosed in annual return of respondent company, aforesaid plea raised by respondent was to be rejected

ITAT followed its earlier order and directs TPO to exclude functionally dissimilar comparables from

IT/ILT : Exclusion of comparables was to be directed in view of earlier years' order of Tribunal on same facts and circumstances

Import Duty On Vegetable Oils Hiked

The Finance Ministry has hiked import duty on both crude and refined vegetable oils to protect local farmers and refinery industry.

The basic customs duty has been hiked by 5 percentage points each, bringing the import duty on crude oils to 7.5% and that on refined oils to 15 per cent. Prior to this move, crude oils attracted import duty of 2.5% and refined oils attractted customs duty of 10%.

India had imported estimated 11.6 million tonnes of edible oil in 2013/14, higher than record 10.4 million tonnes imported in 2012/13. New Delhi is likely to import 13 miillion tonnes of edible oils this year that began from November.

About 60 per cent of India's annual edible oil demand of 18-19 million tonnes is met through imports. A significant portion of imports is palm oil sourced from Malaysia and Indonesia.

Source:thehindubusinessline.com

Yule Brews Packet Tea Plan

Andrew Yule & Company Ltd is betting on value addition in its tea business. The diversified PSU is targeting to raise the share of packet tea in the business to over 25 per cent in 2-3 years from 5 per cent.

The company, which produces 12 million kg annually, expects to clock a turnover of Rs 200 crore from its tea division by the end of this fiscal against Rs 183 crore last year.

It has unveiled its online B2C sales portal to cash in on growing e-commerce prospects. As part of its sales strategy, the company is mulling a pan-India launch in select institutional and retail chains. It is already an exclusive supplier to the Tribal Cooperative Marketing Development Federation of India and the Central Cottage Industries Corporation of India.

"The tea industry is at the crossroads. Tea, coffee and cocoa have not done well as far as price is concerned. The operating cost for the industry is going up. One of the way out for an Indian manufacturer of tea is to get into value addition. Our target is to take the share of packet tea to over 25 per cent in 2-3 years from about 5 per cent now," managing director Kallol Datta said.

At an industry level, packets constitute 30 per cent of the domestic consumption of 1,000 million kg. Last year, production stood at 1,200 million kg, while exports were at around 200 million kg. The domestic packet tea market is valued at around Rs 9,500 crore.

Buoyed by the increased demand for green tea, Andrew Yule is planning to start its production in Darjeeling, Assam and the Dooars. It has 15 gardens - 10 in Assam and five in Bengal.

Andrew Yule is also tapping new export markets and has exported value-added tea to the US and eastern Europe.

Datta said the Assam government had shown interest in handing over 15 gardens to the company under the Assam Tea Corporation. "We had initial discussions with them. There are issues in those gardens. We told them we could go phase-wise and begin with three. In Bengal, we gave a proposal to take over two gardens-Pandam and Rangaroon-initially. The Bengal government has now decided to auction five gardens. We are contemplating whether to bid and take part in that auction," he said.

Source:telegraphindia.com

Rupee Challenge Likely For Jaitley, Rajan In 2015

The rupee has been the best-performing emerging market currency in 2014 providing a welcome break for investors, who spent much of 2013 watching the currency crash from one low to another.

The strength in the rupee helped attract foreign investment and underpinned the domestic stock markets in 2014. But as the year draws to a close, the currency has started weakening again.

Last week, Finance Minister Arun Jaitley had to make a statement in Parliament after the rupee hit a 13-month low of 63.89 against the dollar

Mr Jaitley may have to face many more questions about the rupee in the coming months as analysts expect the currency to face increasing headwinds in 2015.

"The rupee is expected to weaken further against the dollar and the first target is 65/dollar," said Saagar Bajaj, technical analyst with Nirmal Bang. Madan Sabnavis, chief economist of CARE Ratings expects the rupee to hover between Rs 64- Rs 65 a dollar in the coming days.

Moses Harding, group CEO and chief economist at Srei Infrastructure Finance tweeted today, "Taking all cues in play, #USD/INR is seen to have set up ST base at 62.85/63.10-63.35 with goal post now at 64.85-65.10/65.35 by end FY15."

Source:profit.ndtv.com

Gold Loses Sheen To Import Curbs; Smugglers Make Hay

Losing its sheen for the second year in a row, gold turned cheaper by over 10 per cent in 2014 as the government tried to divert investors away from this 'unproductive asset', even as import curbs led to a rise in smuggling of the yellow metal. For silver, the year has been even worse with a fall of about 20 per cent in its price.

As the year 2014 draws to a close, gold prices have fallen to nearly Rs 26,000 per 10 grams from close to Rs 30,000 at the end of 2013. For silver, the fall has been even sharper at about Rs 36,000 per kg from close to Rs 44,000 at the beginning of 2014.

The fall in prices of the two precious metals came amid import curbs on gold for a significant part of the year, even as RBI has now eased some of these curbs.

A strong rally in the stock market, which is emerging as a preferred investment class, and sustained selling pressure from bullion stockists, coupled with weak trends in global metal markets, further dampened the sentiment in the precious metal market in India, experts said.

After starting the year at around Rs 29,800-level, the standard gold (99.5 purity) touched its yearly high of Rs 30,795 per 10 grams on March 3, but started moving downwards thereafter and has touched a low near Rs 26,000 this month.

Pure gold (99.9 purity) also recorded a high of Rs 30,945 per 10 grams early in the year, but soon began falling and touched a low near Rs 27,000 in December.

Silver also scaled a peak of close to Rs 50,000 early in the year, but is headed to end the year near Rs 36,000-37,000-level. It had ended 2013 at Rs 44,230 per kg.

A sharp appreciation in the US dollar against the Indian currency added to the selling pressure in gold, while festival demand also remained relatively weak this year.

Government had imposed severe restrictions late last year on gold imports, including an increase in import duty to 10 per cent to check burgeoning current account deficit and sliding rupee. The steps, in line with the Centre's aim to help lower gold imports, also led to increased instances of smuggling.

However, some restrictions were eased in May, just before the previous UPA government's tenure ended, while further curbs were lifted last month under the new regime. The government has now also cut the import tariff value on gold and silver, taking into account weak global trends.

Meanwhile, silver prices also declined on reduced off-take from industrial users. Sharp rise in equity market affected the sentiment in the precious metals as investors transferred funds to equities from metals.

The year witnessed little buying interest during festivals like Dhanteras and Diwali, while demand was weak even during the wedding season.

In the global market, gold peaked above USD 1,300-level an ounce around the middle of the year on safe haven buying triggered by escalating geopolitical tension. However, it declined afterwards to touch a low of USD 1,140 an ounce towards the end of the year amid unwinding of positions by the hedge funds.

Source:economictimes.indiatimes.com

Asia Rice-Trading Slows On Thin Demand; Prices Mixed

Trading in Asia's rice market weakened on thin demand amid price declines in Vietnam, but rates held up in Thailand as exporters stockpiled the grain before the holidays, traders said on Wednesday.

"A major exporter has been buying a lot of rice from the market for the past few days," a Bangkok-based trader said, adding fears prices could rise after the holidays prompted more buying.

"Thai rice prices have never been this low so they probably think it is a good time to buy," he said. Thai benchmark 5 percent broken grade rice edged up to $418 per tonne on Wednesday, free-on-board (FOB), from $413-$415 a week ago, thanks to the domestic purchases.

On Monday, Thailand's military junta approved the sale of 247,000 tonnes of rice in an open tender, part of continued efforts to offload rice from huge stockpiles accumulated under the previous regime.

On Friday, Thailand struck a deal to sell 2 million tonnes to China, also the biggest buyer of Vietnamese rice this year.

In Vietnam, prices eased as buyers stayed away during the holiday-shortened week while stocks thinned, traders said.

The 5 percent broken rice dipped to $385-$390 a tonne, FOB Saigon Port, from $390-$395 a tonne last Wednesday. The 25 percent broken rice stood unchanged at $360-$365 a tonne.

"The remaining stocks are very low now and only from late February can Vietnam offer its fresh winter-spring rice," a trader in Ho Chi Minh City said, referring to the country's biggest rice crop with its harvest peaking in March/April.

Thai rice exports this year could touch 10.2 million tonnes, just 500,000 tonnes below its 2011 record high, a level that could help it displace India as the top exporter, the UN Food and Agriculture Organization (FAO) said in a quarterly report issued earlier this month.

It projected India's exports at 10 million tonnes and said Vietnam will ship 6.6 million tonnes during the whole of 2014. The three countries would account for 67 percent of global rice trade in 2014, the FAO data showed.

Source:brecorder.com

India To Reap $12 Bn-Plus Budget Windfall From Oil Slide

The savings would come in the form of reduced fuel subsidy costs and higher petrol and diesel levies, the sources said. In addition, finance ministry officials have proposed restoring a crude oil import duty that was scrapped in 2011.

A plunge of nearly half in oil prices could help Indian Finance Minister Arun Jaitley reap a fiscal windfall of at least USD 12 billion when he presents his 2015/16 budget in February, two government sources told Reuters.

The savings would come in the form of reduced fuel subsidy costs and higher petrol and diesel levies, the sources said. In addition, finance ministry officials have proposed restoring a crude oil import duty that was scrapped in 2011.

As a result, the government would claw back most of the money that India saves on oil

imports. That would help Jaitley hit borrowing targets but dilute any boost to consumption in Asia's third-largest economy.

Energy-hungry India imports around 4 million barrels of oil per day and the net cost of the country's oil imports is expected to total USD 88 billion in the fiscal year to next March, based on a budgeted oil price of USD 105 per barrel.

Officials drawing up Jaitley's first full-year budget are penciling in a view that oil prices will average USD 65-USD 70 in 2015/16. That would cut the national import bill by USD 18 billion - or 0.9 percent of GDP, they reckon.

"Benefits from the fall in oil prices would reflect in the budget through lower oil subsidies and higher tax projections next year," one senior finance ministry official told Reuters.The sources estimate that the overall fiscal boost can total 750 billion rupees (USD 12 billion). More than half, 400 billion rupees, would come from savings on oil subsidies.

Source:moneycontrol.com

Electrical fittings and cables are integral parts of windmill; eligible for depreciation at 80%, say

IT : Electrical cables, fittings and other electrical works connected with windmill are a single composite unit and, hence, eligible for depreciation at rate of 80 per cent

No concealment penalty if income surrendered by director during search was honoured by Co. by filing

IT : When surrender of undisclosed income made by director under section 132(4) was honoured by assessee-company in return, assessee was not liable to pay penalty

No concealment penalty for claiming excess deduction under I-T Act if assessee was liable to pay MAT

IT : Where assessee company had paid MAT, book profit disclosed by it was not income determined under Income-tax Act; therefore claim of extra depreciation did not lead to tax evasion and, hence, no penalty could be levied

No revision under sec. 254 on issue of double addition if it wasn't raised in grounds of appeal befo

IT : Where issue of double addition was not raised before Tribunal in grounds of appeal or in course of arguments, Tribunal was not bound to consider said issue; rectification of Tribunal's order would not be required

Steel Sector Stares At Tough Times In 2015, But Hope Afloat

With an above-global average output growth, India has retained its position as the world's fourth-largest steel producer this year but faces tough times ahead in 2015 amid growing imports and other concerns.

While production has grown at a pace faster than the global average for a significant part of 2014, demand has broadly remained sluggish and the sector is looking for a boost from the new government's stated emphasis on manufacturing and infrastructure sectors.

Hoping to benefit from the 'Make in India' programme, all steel producers would look to expand their capacity from about 100 million tonnes per annum currently. The total output stood at above 76 million tonnes in the first eleven months of 2014, cementing India's position as the fourth-largest steel producer for fifth year now.

The sector is also looking to benefit from the fall in iron ore prices to five-year low levels, as also from the declining coking coal prices. The sector, however, continues to lag on a host of parameters, while production cost remains high, particularly for PSUs, limiting its prospects in various export markets.

On the other hand, China is enhancing exports to India and other countries, while there is also a suspicion that the neighbouring country may be circumventing various duties. Among other Asian countries, Japan and Korea have started to reap benefits of free trade agreements, while imports have been rising from India sharply and exports have been falling.

The problem has got compounded due to sluggish trends in the domestic consumption, which has left a lot of unused capacity utilisation. In the current quarter itself, the steel producers have been forced to cut prices by 5-6 per cent due to higher imports, subdued domestic consumption and non-conducive global pricing trends.

The global prices are unlikely to rebound soon, which may come in way of any potential price hike by Indian steel makers, thus affecting their margins. India's per capita consumption is around one-fourth of the international average and this keeps the hope afloat for an eventual recovery. There is hope on the raw material front as well.

The closed iron ore mines in Karnataka and Goa are expected to start soon, making the situation better for domestic steel makers, many of which had to resort to imports. Coking coal mine acquisition by ICVL in Mozambique would also help PSUs and analysts believe that prices of this raw material are also unlikely to rise in the near term.

"The next year could be a 'mixed' year for steel makers if we can resist surge in imports. Demand will be there. With raw material prices set to remain lower, we are hopeful," head of a PSU steel maker said. SAIL Chairman C S Verma, on his part, hopes for a 8-9 per cent production growth next year even as during April-November period, it grew by just 1.3 per cent.

Source:asianage.com

Need To Revisit Long-Term Iron Ore Export Pricing Mechanism

With commodity prices dropping to their lowest level since the global financial crisis, the department of industrial policy and promotion (DIPP) has suggested that export prices of NMDC Ltd’s iron ore should be fixed to ensure adequate sales realisation. The state-run firm only exports to Japan and South Korea.

If the DIPP suggestions are taken into account, the government’s mineral trading arm MMTC Limited, which also finalises the export rates for NMDC under long-term agreements (LTA), may have to re-negotiate the prices.

“The department is also concerned about the fact that commodity prices are down and India should not end up getting low prices negotiated now for the LTA,” the DIPP said to the commerce ministry on December 15.

The DIPP’s suggestion is likely to get support from the domestic steel industry, which has been clamouring for stoppage of ore exports due to heightened demand in India. Both NMDC and the steel ministry have been traditionally opposed to iron ore exports. Global iron ore prices have dipped to a 5-year low at around $70 a tonne due to dip in demand from China. Tumbling global prices led to the state-run miner lowering the prices of ore lumps by Rs 200 a tonne and Rs 100 per tonne earlier this month.

Source:indianexpress.com

Delhi High Court imposes cost on taxpayer for artificial splitting-up of sale consideration to avoid

IT : It is abusive tax avoidance if taxpayer artificially splits consideration for sale of shares to competitor involving transfer of controlling interest and termination of control and management into two parts

HC initiates contempt proceedings against Superintendent for making coercive recovery pending stay a

Excise & Customs : Where revenue had initiated coercive recovery during pendency of stay application of assessee, said proceedings were stayed and contempt proceedings against Superintendent were directed to be registered suo motu

Supply of electricity from power plant set up by lessee was captive power plant; assessee could take

Cenvat Credit : Where assessee had leased out its land only with a view to set up power plant by lessee under an exclusive agreement to supply electricity to assessee for use in manufacture by assessee; said plant was captive power plant of assessee and was eligible for credit in hands of assessee

Aptma Urges Government To Impose Safeguard Measures On Yarn Import From India

All Pakistan Textile Mills Association (APTMA) has approached the Ministry of Textile Industry to take consequent and reciprocal measures by providing level playing field to compete with the international market place and immediately impose safeguard measures on import of Indian yarn into Pakistani commerce to stop the attrition of competitiveness of domestic textile industry.

As, India is the biggest competitor of Pakistan in the international textile arena and it is a matter of grave concern that Pakistani export markets are being slowly taken over by aggressive Indian marketing; during last one year, the Pakistani Rupee has appreciated and the differential between Pak and Indian Rupee has dropped from Rs 44.92 to current value of Rs 36.89 thus appreciating by Rs 8.03 (18 percent).

The impact of appreciation has been further aggravated by massive subsidies given by Indian Government to its export industry in the form of export subsidy @ 3% of export value, 5% relief in interest payment on capital expenditure, subsidy of Rs 1 on electricity tariff and numerous other incentives.

The import of Indian yarn into Pakistan is increasing day by day and during last three years the import of Indian Yarn has increased from 4,927 tons to 25,839 tons. It is a matter of serious concern that India has erected an invincible wall particularly against yarn imports, as a result of which there are no meaningful yarn imports into India.

APTMA in its letter to Federal Ministries of Finance and Commerce as requested that this matter involving survival of the largest industry of Pakistan be taken up with appropriate quarters including the Federal Ministries of Finance and Commerce. In view of the crisis situation they have called for action on an urgent basis.

source:ccfgroup.com

Rupee Opens Lower At 63.43 Per Dollar

The Indian rupee on Wednesday weakened against the US dollar, tracking the greenback’s strength against Asian currencies.

The local currency opened at 63.435. At 9.08am, the home currency was trading at 63.455, down 0.26%, from previous close of 63.2925 on the expectations that US interest rates will go up next year.

The dollar index, which measures the US currency’s strength against major currencies, rose to a five year high on Tuesday, now trading at 90.035, down 0.03%, from the previous close of 90.064.

Most of the Asian currencies were trading lower. Taiwanese Dollar lost 0.380% , South Korean Won lost 0.080%, Philippines Peso down 0.090%, Malaysian Ringgit lost 0.043%, Hong Kong Dollar lost 0.024%, and Indonesian Rupiah lost 0.016%.

10-year bond yield was trading at 7.937% compared with its Tuesday’s close of 7.922%. Bond yields and prices move in opposite directions.

Since the beginning of this year, the rupee has lost 2.61%, while foreign institutional investors have bought $42.65 billion during the period from local equity and bond markets.

Source:livemint.com

Interest on securities was to be taxed when it become due and not when it only accrued at end of ass

IT : Interest on securities would be taxable only on specified dates when it becomes due for payment, and not on that accrued as at end of assessment year

Where appellant insisted on bank guarantee from respondent, appellant must bear cost thereof

Service Tax : Where, though not required as per consent arbitration award, appellant insisted upon bank guarantee from respondent, it is logical and consequential that appellant must bear costs for securing such bank guarantee

HC remands issue of levying penal rate on inter-State sales to unregistered dealers without filing '

CST & VAT : CST - Where assessee made inter-State sales to unregistered dealers for which 'C' forms could not be produced and thereupon Deputy Commissioner levied tax at penal rate on such sales and Single Judge of High Court upheld same, matter was remitted for reconsideration

Forex loss on Foreign Currency Lone was in nature of revenue exp. as loan was raised for redemption

IT : Where assessee-company incurred loss on account of foreign currency non-resident loan and payment made on said loss in foreign currency was expenditure incurred to protect itself from foreign exchange fluctuation loss, therefore, said payment would be of revenue nature

ST Valuation Rule 2B in respect of money changing services isn't ultra vires to section 67, rules Hi

Service Tax : Valuation as per rule 2B of Service Tax (Determination of Value) Rules, 2006 of 'money changing services' is in consonance with provisions under section 67, as tax is levied on ostensible consideration with reference to RBI rate

Revenue Officers can't challenge order of Trial Court due to inadequate sentence as only Govt. can d

Excise & Customs : Section 377 of Code of Criminal Procedure read with section 135 of Customs Act, provides for Appeal by State or Union Government against sentence; hence, Assistant Commissioner of Customs could not prefer an appeal against inadequacy of sentence

HC rejected writ directing assessee to pursue his claim for compounded scheme before appropriate for

CST & VAT : Kerala VAT : Where assessee opted to pay tax at compounded rate and Assessing Authority granted sanction in that regard and later he passed an order cancelling above sanction, assessee was directed to pursue grievances before appropriate forum

Receipt of share premium via banking route wouldn't prove it as genuine unless AO had made proper en

IT : Where assessee-company received share application money with huge and unjustified share premium from corporate entities, merely because said amount was received through banking channel, Assessing Officer was not justified in accepting said transactions as genuine without making proper enquiries

Processing of waste of other units wasn’t manufacture; CIT made revision to deny sec.10B relief

IT : Allowing claim under section 10B to assessee without making an enquiry will indicate that order is erroneous and prejudicial to interest of revenue

HC treats application money of non-convertible debentures as cost of acquisition of detachable warra

IT: Where assessee was issued non-convertible debentures with detachable warrants and debentures were sold at loss of application money, sale proceeds of detachable warrants would be assessed as business income after deducting amount of application money

Penalty for delay in furnishing of AIR upheld as assessee a habitual defaulter failed to explain re

IT: Where Assessing Authority on appreciation of material had concluded that assessee was a habitual defaulter, in absence of any satisfactory explanation having been furnished by him for delay in furnishing annual information return, levy of penalty under section 271FA could not be faulted

CLB's order disposing of oppression plea in terms of family settlement wouldn't amount to an executa

CL: Where oppression and mismanagement petition was disposed off in terms of memorandum of family settlement arrived at between parties seeking withdrawal of petition, such an order would not amount to decree executable under section 634A

Income arising to broker on sales of shares was capital gains as it was sold from investment portfol

IT: Where share broker held shares only of three companies as investment, kept them in a separate portfolio and sold them after a gap of 4 months, short-term capital gains would arise

No penalty on seizure of goods not intended for sale when import declaration was filed prior to levy

CST & VAT : U.P. VAT : Where Assessing Authority imposed penalty upon assessee under section 54(1)(14) on plea that Form No. 38 was not accompanied with air cooling unit at time of interception, since unit was not for sale and Form was submitted prior to imposition of penalty, imposition of penalty was not justified

RBI extends deadline to exchange pre-2005 currency notes by six months

BANKING : Deposit Pre-2005 Currency Notes in Your Bank Accounts before 30-6-2015: RBI Urges Public

High consideration declared by DVO under Sec. 50C didn't amount to filing of wrong income details to

IT : In terms of section 50C, higher sales consideration of property determined by DVO did not by itself amount to furnishing inaccurate particulars of income so as to levy penalty under section 27(1)(c)

Assessee had sold capital asset and not agricultural land when it didn't declare agricultural income

IT: In absence of declaration of agricultural income from land, land sold could not be treated as agricultural land

ITAT sets aside ex-parte assessment as there was no failure of assessee to comply with terms of Sec.

IT : Where there was no failure in complying with notices issued under section 143(2), assessee could not have been fastened with consequences that arise out of a best judgment assessment under section 144

Sum paid by film producer to compensate for loss caused to exhibitors of its movies was capital exp.

IT: Where assessee, film producer, paid compensation to exhibitors of its films which did not do well in theaters resulting loss to exhibitors, such payment not being to discharge any legal obligations but to protect assessee's goodwill, would be treated as capital expenditure

Delay not condonable on submission of medical certificates by assessee without any record of medical

Service Tax : Mere medical certificate without any corresponding record, to show that assessee was taking medical treatment during that period, cannot be accepted for purposes of condonation of delay

ITAT curtails disallowance of foreign travel expenses of directors involving personal expenses

IT: Though possibility of involvement of personal expenditure in foreign travelling expenses of directors could not be ruled out, disallowance, even if made on estimate basis, should be a fair and justifiable estimate considering surrounding circumstances

Co. engaged in software development or technical services not to be chosen as comparable for ITES se

IT/ILT : Company engaged in software development, KPO services or providing highly technical engineer's services or outsourcing its major services to third party vendors could not be selected as comparable to ITES service provider

Policy of opposite party of granting one electric connection to one license was equitable and non-di

Competition Law : Where OP granted one electric connection to appellant who was jointly granted license with two others for setting up a colony on basis of its policy of granting one electric connection for one license, policy of OP was equitable and non-discriminatory

SLP admitted against TP addition which was made on basis of cost-plus mark-up on FOB value of goods

IT/ILT: SLP granted against order of High Court where it was held that in absence of any material on record showing that assessee bore significant risks and enjoyed some locational advantages, revenue authorities were not justified in making addition to assessee's ALP by applying cost plus markup of 5 per cent on FOB value of goods exported to AE located abroad

Textile Industry Urge Centre To Come Forward To Redress Issues

The textile industry in Tamil Nadu could double exports and its performance if the Centre comes forward to redress some specific issues faced by the community, an industry official said today.

The production sectors like spinners, hosiery manufacturers, textile and garments exporters and autolooms cloth manufacturers have prepared a detailed report on the 'opportunities and challenges' faced by the industry with the help of experts and it would be submitted to Union Commerce Minister Nirmala Sitaraman, who is visiting the city on December 27, D Prabhu, Secretary, Texpreneurs Forum told reporters here.

Various textile- related associations, including Andhra Pradesh Spinning Mills Association, wanted the Centre to identify four trade zones--Latin America, Russia, European Union and South Asia to which India could export the produce and create strategic trade agreements, he said.

Since the Centre was in the process of taking a few policy decisions regarding textile industry, the associations would place on record their views on these policies, A C Eswaran, President, South India Hosiery Manufacturers Associating, said.

Tamil Nadu has one-third of the production of textile industry, having 47 per cent of total spinning mills and contributing 60 per cent of the yarn exports of India and also purchasing about 30 per cent of total cotton produced in the Country.

Source:- business-standard.com

IRDA lays out process of online filing of health insurance returns via 'Business Analytics Project'

INSURANCE : Submission of Health Insurance Regulatory Returns through the Business Analytics Project (BAP) Module

IRDA allows parallel submission of health return via 'BAP module' and email until health module is f

INSURANCE : Changes in Health Insurance Regulatory Returns as Published under Irda (Health Insurance) Regulations, 2013

Govt May Impose Dumping Duty On Chinese Graphite Electrodes

The government may impose anti- dumping duty of up to USD 922 per tonne on Chinese graphite electrodes, used for steel melting, to protect domestic players from cheap imports.

In its final findings, the Directorate General of Anti-dumping and Allied Duties (DGAD) has said the electrodes have been entered into the Indian market from China at prices less than their normal values.

The application for the investigation was collectively filed by HEG Ltd and Graphite India Ltd.

"...The Authority is of the opinion that definitive measure is required to be imposed to offset dumping and injury being caused to the domestic industry. Accordingly, the Authority recommends imposition of definitive anti-dumping duty," a Commerce Ministry notification said.

The recommended anti-dumping duty ranges between USD 278.19 per tonne and USD 922.03 per tonne.

Anti-dumping duty is recommended by the Commerce Ministry, while the Finance Ministry imposes it.

The DGAD has also concluded that due to dumping of the product, the domestic industry has suffered material injury.

Imports of graphite electrodes from China increased to 13,135 tonnes in 2011-12 from 4,903 tonnes in 2009-10.

Unlike safeguard duties, which are levied in a uniform way, anti-dumping duties vary from product to product and from country to country.

Countries initiate anti-dumping probes to check if domestic industry has been hurt because of a surge in below- cost imports. As a counter-measure, they impose duties under the multilateral WTO regime.

Source:- business-standard.com

Indian Trade Policies Delayed American Export To India

Restrictive Indian trade policies have delayed American export and investment to India, a USITC report has said with the US lawmakers asking the Narendra Modi government to address these significant areas of concern as both countries work to strengthen economic relations.

“US exports to and investment in India would be significantly higher if not for Indian policy barriers,” the US International Trade Commission (USITC) said in its report “Trade, Investment, and Industrial Policies in India: Effects on the US Economy.”

Prepared at the request of lawmakers, the report provides information on the effects of a wide range of Indian policies that limit US exports to and investment in India.

These policy measures include tariffs and customs procedures, foreign direct investment restrictions, local-content requirements, treatment of intellectual property, taxes and financial regulations, regulatory uncertainty, and other non tariff measures, such as unclear legal liability, price controls, and sanitary and phytosanitary standards.

“We remain concerned about systemic and continuing market access barriers identified in the ITC’s report that undermine a market-based path to development for India and diminish opportunities for US workers and businesses,” said the House Ways and Means Committee Chairman Dave Camp, Ranking Member Sander Levin (D-MI), and Senate Finance Committee Chairman Ron Wyden and Ranking Member Orrin Hatch in a joint statement.

“We urge the Indian government to address these significant areas of concern as the United States and India work to strengthen our economic relationship,” the four American lawmakers said.

We are at a pivotal moment for the US-India relationship.Prime Minister Narendra Modi, who recently took the helm of the Indian government, has spoken of a pro-growth vision for India. We are hopeful that we may see a deepening expansion of our long-term trade and investment relationship, which has already risen to nearly USD100 billion,” the joint statement said.

In an effort to obtain the most comprehensive and up-to-date information possible, in light of India’s national elections, the four lawmakers requested in September that the Commission conduct a second investigation of India’s trade and investment practices, scheduled to be delivered to Congress on September 24, 2015.

The purpose of this second investigation is to seek information concerning India’s policies since the first investigation, they said.

The report released yesterday features the results of a USITC survey of US firms in selected industries that are currently doing business in India, a quantitative analysis (using economic modeling) of the effects of Indian policy measures on US workers and the US economy, and qualitative research into these effects.

It also includes case studies and examples illustrating ways that the policies affect particular companies or industries.

According to the report, the share of US companies substantially adversely affected by restrictive Indian policies rose from 18.8 per cent to 26.1 per cent between 2007 and 2013.

Shares for individual sectors in 2013 ranged from 7.7 per cent to 44.1 per cent. Over 60 per cent of the affected companies have made strategic changes in response to these barriers, most often directing fewer resources to the Indian market, it said.

Policies in two areas tariffs and customs procedures, and taxes and financial regulations have the heaviest effects on US companies, USITC said adding that other issues, including investment and intellectual property policies, have large negative effects on specific industries.

If tariff and investment restrictions were fully eliminated and standards of IP protection were made comparable to US and Western European levels, Commission model results indicate that US exports to India would rise by two-thirds, and US investment in India would roughly double, the report said.

Source:- financialexpress.com

TP norms would not put fetters on selection of foreign comparables if Indian Cos didn’t satisfy test

IT/ILT : Indian Transfer Pricing Regulation does not put any fetters on selection of foreign comparables, if conditions are as such that the Indian comparables do not stand the test of comparability with the tested party.

Loan couldn't be treated as unexplained when identity and creditworthiness of creditors were establi

IT : Where Assessing Officer did not point out defect in details of expenditure submitted by assessee and personal elements in said expenditures were taken care in FBT, expenditure was to be allowed

Time-limit of sec. 11B doesn’t apply to refund of wrongly paid service tax

Service Tax : Where there is no levy of service tax at all, amount wrongly paid cannot partake character of 'service tax'; therefore, refund may be claimed by service recipient and time-bar of section 11B of Central Excise Act, 1944 would not apply

Value of branded goods cleared on payment of full duty wasn't includible in turnover limit for SSI e

Excise & Customs : Value of branded goods cleared by assessee on payment of full duty are not includible in turnover limit of Rs. 300 lakhs (or Rs. 400 lakhs) for purposes of determining eligibility to SSI-exemption

India Defers Changes To Organic Textile Certification

The Indian government has deferred plans that would have required exports of all organic textile products to be certified to the Indian Standard for Organic Textiles (ISOT).

The decision has been described as "most welcome" by manufacturers and exporters who feared interruptions to their business.

Shri RK Dalmia, chairman of the Cotton Textiles Export Promotion Council (Texprocil), said the implementing body, the Agricultural and Processed Food Products Export Development Authority (APEDA), has not yet sent out accreditation letters to the certifying bodies - even though the deadline for complying was set for 18 December.

However, according to a notice from the Director General of Foreign Trade (DGFT) at the Ministry of Commerce, the mandatory certification of organic textile products exported from India to the ISOT will not be enforced until "further order."

The ISOT is part of the National Program for Organic Production (NPOP), whose certification was already required for raw cotton. The plans would have seen it extended to cover finished organic textile products like yarn, fabrics and garments.

The proposal was of particular concern to the Global Organic Textile Standard (GOTS), which feared the changes in certification procedures would have had implications for the manufacturers and exporters of GOTS certified and labelled textile products. In essence, organic textile manufacturers would have had to obtain ISOT certification as a legal requirement - while GOTS certification would also continue to be required as a buyers' requirement in order to allow corresponding organic labelling in sales markets.

"We trust that the Indian Government will now carefully consider practicability of implementation (deadline) and potential implications for all parties concerned and especially the Indian export industry before any related follow-up decisions/notifications are being released in this context.

Source:- just-style.com

Rupee Down 4 Paise To 63.29 Against Dollar In Early Trade

The rupee depreciated by four paise to 63.29 against the US dollar in early trade today at the Interbank Foreign Exchange on fresh demand for the American currency from banks and importers.

Forex dealers said besides the dollar's gains against other Asian currencies, increased demand for the American unit from importers contributed to the rupee's weakness but a higher opening in domestic equities, capped the fall.

The rupee had gained five paise to close at 63.25 against the dollar in yesterday's trade on fresh selling of the US currency by exporters amid bullish stocks.

Meanwhile, the benchmark BSE Sensex rose by 49.46 points, or 0.18 per cent, to 27,751.25 in early trade today.

Source:- economictimes.indiatimes.com

Brokerage paid to mobilize public deposit was revenue exp. if interest was payable on it and deposit

IT : Brokerage paid for mobilising public deposit is revenue expenditure

Place of issuing notice on dishonor of cheque doesn't confer jurisdiction upon Court to take cogniza

Negotiable Instruments Act : Issue of notice under section 138 from Delhi or deposit of cheque in a Delhi Bank by payee or receipt of notice by accused demanding payment in Delhi would not confer jurisdiction upon Courts in Delhi

Now Regional Rural banks directed to alert customers before levying penal charges due to fall in min

BANKING : Levy of Penal Charges on Non-Maintenance of Minimum Balances in Savings Bank Accounts

No TP adjustment under TNMM when Co. had charged higher/lower amount of depreciation than its compar

IT/ILT : No Transfer Pricing adjustment can be made under Transactional Net Margin Method (TNMM) for a simplictor higher/lower amount of depreciation in itself or as a percentage of total operating expenses nor does an otherwise comparable company ceases to be so because of these factors. Adjustment called for when there is a difference in rates of depreciation on similar types of assets under similar method of charging depreciation

Petitioner was defaulter as it didn't comply with demand notice without disputing deposit held on as

IT : Where though petitioner did not dispute about deposits held by it on behalf of assessee and same being payable to assessee, but he did not comply with demand notice raised by department, it was to be treated as assessee in default

SLP admitted to decide whether prosecution could be initiated against assessee for not filing timely

IT:SLP granted against order of High Court where it was held that prosecution against assessee under section 276CC for not filing return of income timely could be initiated on presumption that there existed a culpable mental state as onus to prove that delay was not wilful was on assessee and not on department

Check Post Officer can't decide nature of detained goods and rate of tax applicable on it

CST & VAT : Punjab VAT : Check post Officer has no jurisdiction to delve into disputed question of nature of item and rate of tax on detained goods

Merely wrong description of AO's designation in order won't invalidate assessment order

IT: In presence of documentary evidence Expenditure incurred by assessee on filling up land could not be denied, merely because vendor of that land had already claimed similar expenditure

Authority couldn't cancel registration on non-furnishing of security when it demanded unreasonable a

CST & VAT: Where Assessing Authority demanded additional security from assessee and on his failure to furnish same cancelled his registration certificates, since Assessing Authority without taking into account provisions of section 17 of Kerala Value Added Tax Act, 2003 and section 7 of Central Sales Tax Act, 1956 had demanded additional security and cancelled registration certificates, impugned proceedings were set aside

No concealment penalty on wrong claim if assessee had made full disclosure and accounting treatment

IT : Where assessee had made full disclosure of cost of website maintenance and proportionate writing off year wise, mere disallowance of expenses by Assessing Officer could not be ground to levy penalty