TDS liability doesn't arise on payments made to NR shipping Cos or its agents

IT : Where assessee made payments to agent of non-resident shipping companies, assessee was not required to deduct TDS under section 194C in respect of said payment

No reassessment on basis of info of DDIT (Investigation) that cash seized from director belonged to

IT : Where certain cash was seized by police from director of assessee-company, merely on basis of information received from DDIT (Inv.), AO could not initiate reassessment proceedings by recording reason that creditworthiness of assessee had to be proved beyond doubt to accept claim of its director that money seized infact belonged to assessee-company

Stock statements given to banks for availing credit facilities don't establish undervaluation of goo

Excise & Customs : Stock statements given by assessee to banks for purposes of getting credit facilities do not prove undervaluation in absence of any evidence of flowback of additional consideration from buyer to manufacturer

Pension Fund Authority notifies norms for operational conduct and governance of Central record keepi

INSURANCE/INDIAN ACTS & RULES : Pension Fund and Development Authority (Central Record keeping Agency) Regulations, 2015

Cost of Acquisition of land to partner would be deemed as its book value on date of transfer on diss

IT : In case of transfer of land on dissolution of partnership firm, book value of land as on date of transfer would be deemed as cost of acquisition of said land in hands of transferee

Assessee who pursued writ after appeal was time-barred couldn't seek condonation of delay before Com

Service Tax : Appeal filed beyond total 3 months from receipt of adjudication order is beyond condonable period of delay of Commissioner (Appeals) and is liable to be dismissed; and, in that regard, benefit of section 14 of Limitation Act cannot be availed by person who pursued writ remedy after appeal was time-barred

CCI negates abuse of dominance by opposite party as it wasn't dominant in the relevant market of e-g

Competition Act : Where opposite party was not dominant in relevant market for provision of e-services through CSC network in India, proceeding against it for contravention of section 4 were to be closed

Interest earned on sums kept in FD out of sums granted by Govt. for infra development wasn't taxable

IT: Where sum granted by State Government to assessee-government company acting as nodal agency for increasing export of horticultural produce, was kept in fixed deposit before utilisation, interest earned could not be treated as income of assessee

Non-refundable membership fee has to be apportioned and taxed during period of membership, rules Guj

IT: Where assessee-company was providing facility cards to members on payment of one-time fee, and services were rendered partially in a year, revenue earning was to be spread over period of membership

Construction of railway siding to transport ‘coal’ to captive power generating plant amounts to ‘inp

Cenvat Credit : Construction and related services availed for getting a railway siding constructed for transport of 'coal' to captive power plant for generation of electricity for use in manufacture, amounts to 'services used in or in relation to procurement of inputs' and eligible for input service credit

AO couldn't initiate reassessment again on same ground on which previous reassessment was cancelled

IT: Once first reassessment initiated on ground that assessee had availed deduction in respect of ceased liability without offering it to tax, was cancelled, second reassessment could not be initiated if no new information is available

A fraudulent company can't be chosen as comparable for TP study as its financial results aren't reli

IT/ILT : Where TPO made addition to assessee's ALP in respect of rendering call centre services to its parent company located abroad, since comparables selected by TPO were involved in fraud on account of which their financial results could not be considered as correct and reliable, impugned addition was to be set aside

Delay of more than 90 days in filing appeal before Commissioner (A) cannot be condoned even by High

Excise & Customs : In case of delay beyond 90 days in filing of appeal before Commissioner (Appeals), no appeal can be entertained by Commissioner (Appeals) and even High Court cannot condone such delay

CLB grants 30 days’ time to ‘Unitech Ltd.’ for repayment of deposits; appoints committee to monitor

Companies Act: Where Unitech Ltd. failed to repay matured FDs despite making profits yet it wanted to reschedule payment thereof, it was to be directed to repay the deposits as rescheduling of deposits was not allowed under new Companies Act, 2013 and, accordingly, directed the 'Unitech Ltd' to repay deposits within 30 days.

Construction of railway siding for transportation of ‘coal’ to captive power generating plant amount

Cenvat Credit : Construction and related services availed for getting a railway siding constructed for transport of 'coal' to captive power plant for generation of electricity for use in manufacture, amounts to 'services used in or in relation to procurement of inputs' and eligible for input service credit

Sec. 80-IC relief couldn't be restricted on ad hoc basis to 50% as manufacturing was started in mid

IT : Certificate of Deputy Director of Industries showing date of commencement of commercial production is a positive proof that assessee was manufacturing/assembling unit, entitled to deduction under section 80-IC

Process of sterilization of 'syringes and needles' for medical purposes does not amount to manufactu

Central Excise : Sterilization does not produce a transformation in 'syringes and needles' and does not lead to any value addition in said product; it merely removes bacteria which settles on syringe's and needle's surface and therefore, process of sterilization of 'syringes and needles' for medical purposes does not amount to manufacture

Cessation of liability to repay loan wasn't taxable as revenue receipts as loan was raised to purcha

IT : Where assessee, a sick industrial unit, took loan from bank to purchase capital assets, subsequent waiver of said loan by bank in one time settlement did not result in revenue receipt which could be brought to tax in hands of assessee under section 28(iv)

No denial of sec. 11 relief to hospital just because it didn't provide concessional treatment to poo

IT: Where assessee-hospital was providing medical relief to people at large, merely because surplus was generated from hospital activities could not be ground to deny exemption under section 11 to assessee

SEBI issues master circular for stock exchange and clearing corporations

SEBI : Master Circular for Stock Exchange and Clearing Corporation

Even development of housing projects for DDA would provide sec. 80-IB relief to assessee

IT : Where assessee, after development of infrastructure facility project, transferred same to Government for which it was paid cost plus margin of income by Government, it would be entitled to deduction under section 80-IB

Karnataka VAT : Segregation of value of goods and labour of works contract isn't permissible in Comp

CST & VAT: Karnataka VAT - In a works contract involving transfer of goods and labour, composition tax is payable under section 15(1)(b) on total consideration of works contract and segregation of composite contract is not permissible under section 15(1)(b)

A software service provider can't be compared with a software developer for TP study

IT/ILT: Company engaged in rendering of provision of software services to its AEs is not comparable to a company engaged in development of software products

SEBI releases revised FAQs on FPIs

SEBI : FAQs on SEBI (Foreign Portfolio Investors) Regulations, 2014

Cutting of large plates into smaller size using gas cutting machines amounts to manufacture

Excise & Customs : Extended period cannot be invoked, if, even as per department, there were doubts as to whether process amounted to manufacture

Action of real estate Cos of legitimizing their illegal acts by using political links was outside th

Competition Act: Where informant was aggrieved by fact that real estate companies were using political connections to seek approvals from Government of Haryana to legitimise their otherwise illegal actions, same could not come within purview of section 3

Gifts couldn’t be held as unexplained if identity and relationship of donor were known

IT : Where identity and relationship of donor was known, amount received by assessee by way of gifts from said donor could not be treated as income from undisclosed source

High Court allows depreciation on goodwill following ratio laid down by Apex Court in case of Smifs

IT : Assessee was entitled to claim depreciation on consideration paid and accounted for as goodwill

Sum paid to AE for use of its trademark couldn't be disallowed even if assessee's own trademark was

IT/ILT : Where TPO disallowed payment of royalty made by assessee to its AE on sales, in view of fact that there were no comparable companies offering similar services comparison made by TPO on basis of transactions of assessee's subsidiary company much prior to year under consideration could not be considered as internal CUP and, consequently, impugned disallowance was to be deleted

Haryana VAT : Levy of interest through order other than assessment order is valid, however, such pra

CST & VAT: Haryana VAT - Where Assessing Authority issued on assessee a notice proposing to levy penalty and interest and after framing assessment he passed a separate order dropping penalty proceeding but levying interest, Assessing Authority should have decided question of penalty and interest along with assessment order, but his failure to do so did not render impugned order null and void

No cancellation of trust's registration on ground that it was covered under first proviso to sec. 2(

IT : If case of assessee falls in first proviso to section 2(15) and, therefore, benefit of registration under section 12A is not available, this is a matter to be considered by Assessing Officer but, registration cannot be cancelled on that ground

Time lost in pursuing remedy before wrong forum is excludible from time-limit for filing appeal befo

Excise & Customs : Application seeking exclusion of time spent in remedy before non-jurisdictional forum bona fide, amounts to invocation of section 14 of Limitation Act

A developer can change its method of accounting if there is uncertainty in ultimate collection of re

IT : Uncertainty in ultimate collectibility of revenue justifies change of method of accounting by property developer from percentage of completion to recognition of income based on registration of agreements for sale or completion of possession and consequential reversal of revenue on cancellations/legal cases. This is so especially where such uncertainty is evidenced by cancellations of property bookings and National Consumer Dispute Redressal Commission upholding cancellation and dismissal

Time-limit to install capital goods by EOU has to be reckoned on basis of validity period of letter

EXCISE LAWS/NT : Exemption to Specified Goods when Brought into 100% EOU/STP Complex – Amendment in Notification No.22/2003-C.e., Dated 31-3-2003

Govt. tweaks scheme for goods procured by EOUs

EXCISE LAWS/NT : Exemption to Specified Goods when Brought into 100% EOU/STP Complex – Amendment in Notification No.22/2003-C.E. & Notification No.23/2003-C.E., Both Dated 31-3-2003

No reassessment by AO to withdraw sec. 80-IB relief without bringing any new materials to justify su

IT : Where Assessing Officer allowed deduction under section 80-IB(10) assessee being small scale industrial unit but sought to reopen assessment for withdrawing same on ground that total value of plant and machinery exceeded limit of Rs. 1 crore but he had not brought any new material which came to his notice, initiation of reassessment was bad in law

Using initials of buyer's brand name amounts to use of brand/trade name; such clearances not eligibl

Excise & Customs : Usage of mark/initials of buyer's name (say, HM for Hindustan Motors) amounts to use of buyer's brand/trade name on goods and same is neither eligible for SSI-exemption, nor includible for purposes determining eligibility limit of SSI-turnover of previous year

Interest paid on borrowed funds used by dealer to buy property for his showroom was deductible

IT : Where assessee, a dealer of vehicles, having taken loan, used certain amount for booking of showroom, in view of fact that assessee had sufficient surplus funds for making said advance and, moreover, it was a commercial decision which could not have been gone into unless Assessing Officer had concrete material to contend that transaction was a sham, assessee's claim for interest on borrowed capital could not be rejected

Declaration of additional income pursuant to survey doesn’t invite penalty in absence of any conceal

IT : Where assessee, consequent to survey, declared additional income which was accepted by Assessing Officer, imposition of penalty under section 271(1)(c) was not justified

Clearances of intermediate parts by job-worker to its principal has to be valued as per general rule

Excise & Customs : Clearances of 'motor vehicles parts' manufactured by job-worker for use in manufacture of 'motor vehicles' by principals, would be valued as per rule 11 and valuation rules 8 and 9 cannot apply thereto

Jewellery can be released after furnishing bank guarantee even if its actual ownership is to be dete

IT : Seized jewellery could be released on furnishing of bank guarantee by Karta of HUFs even if it was not cleared whether jewellery belonged to HUFs or Karta

Assessee liable to pay secs. 234B and 234C interest if he didn’t discharge advance tax liability on

IT: Where assessee's liability to pay advance-tax within time prescribed under section 211 existed on last date for payment of advance tax or at least on last date of financial year, on failure to pay advance tax on stipulated dates, interest was to be levied

Gujarat VAT : Replacement of spare parts during warranty period amounts to sale and liable to VAT

CST & VAT : Gujarat VAT - Where assessee, a motor car dealer, purchased spare parts and replaced same in place of defective spare parts during warranty period for which manufacturer issued credit notes, transaction of replacement of spare parts amounted to sale and levy of tax on said sale was justified

Stay granted by ITAT as TP adjustment were made on basis of comparable which were rejected in earlie

IT/ILT : Where comparables rejected by TPO were accepted to be good comparables in subsequent years/earlier years, assessee had a prima facie case for partial stay of demand arising mainly out of transfer pricing adjustment

Vinyl sheets printed with advertisement picture/slogan thereon is classifiable as 'printed matter'

Excise & Customs : Vinyl sheets printed with a picture and slogan thereon using thermocopied machine and meant for use as advertising material, is classifiable as 'printed matter' (Heading 49.01) and not as 'Illuminated signs, illuminated name plates, etc. not elsewhere specified' (Heading 94.05)

IT dept. couldn't object to arrangement scheme as transferor had given undertaking to discharge tax

CL : Where undertaking was given by company that in event of any demand raised by Income-tax Department, transferee company would duly discharge same in accordance with law, objection of income-tax department to sanction of proposed scheme of amalgamation was irrelevant

No reassessment after 4 years to deny sec. 10A relief if assessee had disclosed all material facts i

IT : Where section 10A exemption was allowed during assessment proceedings after examining return and accompanying document, reassessment to deny said exemption after expiry of 4 years is not justified unless there is allegation that facts were not truely and fully disclosed

Retracted statement of assessee couldn’t invalidate block assessment if it was also based on seized

IT: Where block assessment was not only based upon statement of assessee but was also based on seized documents, retracted statement of assessee could not invalidate said assessment

A.P. VAT : SC granted SLP to determine eligibility for composition scheme on construction of residen

CST & VAT : A.P. VAT - Where assessee, a works contractor, entered into agreement for executing works contract of construction of residential apartments and it opted to pay tax by way of composition and High Court held that assessee was not entitled for composition, SLP deserved to be granted

High Court directs ITAT to re-consider issue of allowing depreciation on goodwill

IT : Where Tribunal had not made any finding on merits of issue of depreciation, matter be reconsidered afresh

TPO to re-consider additions as assessee had filed details which were not available at the time of a

IT/ILT : Where assessee submitted necessary details in respect of management, technical and consulting services received from AEs for its civil construction work, ALP determined by it could not be disregarded without considering said details

Subsidy for setting-up industry in backward area couldn’t be reduced from actual cost of asset to co

IT: Assessee is eligible for additional 50 per cent depreciation in subsequent year when in earlier year 180 days period was not completed

Transit insurance of capital goods is eligible for input service credit

Cenvat Credit : Insurance of capital goods whether in factory or in transit and group insurance of workers and staff is indirectly related to manufacture and being 'activities relating to business', are eligible for input service credit

Honda Now Exporting Jazz From Indian Factory To South African Markets

Japanese car maker Honda has started shipping the premium hatchback Jazz to South Africa from its plant in Rajasthan in advance of the upcoming launch of the new version of the vehicle in India.

The company is manufacturing the new Jazz at Tapukara plant where it is spending Rs 380 crore to enlarge production capacity from 1.20 lakh units to 1.80 lakh units annually.

Honda Cars India Ltd (HCIL) Senior Vice-President (Marketing and Sales) Jnaneswar Sen told PTI, "We have already started the export of the new Jazz to South Africa from here. The vehicle is being produced at our Tapukara facility."

Last month the company shipped around 600 units of Jazz, City, Amaze and Brio to South Africa. A few cars were also exported to Nepal.

In India, the Jazz was first introduced in 2009 with a price of over Rs 7 lakh which was later reduced by Rs 1.6 lakh.

In 2013 the company put a stop to the production of the car in the country. The company expects to increase its sales network in the domestic market to around 200 cities and towns from the present 152.

Sen held, "In the current fiscal, we plan to expand sales network to over 300 outlets in around 200 locations from the current 232 showrooms in 152 cities. We are looking to expand more in smaller cities and towns."

By the end of 2016-17 fiscal, HCIL targets to touch 3 lakh unit sales milestones per annum. The company presently sells compact car compact sedan Amaze, compact car Brio, multipurpose vehicle Mobilio, mid-sized sedan City and premium sports utility vehicle CR-V.

Source:- delhidailynews.com

Russia To Export Poultry To India

Russia will start exporting poultry and poultry products to India within its program of diversifiying export supplies, reports the deputy head of the Russian veterinary body, Alexei Alexeenko.

"We have looked at what demand there is in India when it comes to our meat production, and in the first place there's a big demand for poultry. Our Indian partners show a lot of interest in our poultry," Alexeenko says.

Russia currently is actively seeking export markets for its poultry production, as the devaluation of the Russian ruble makes exporting much more profitable than a year ago. According to data from the Russian Institute of Agricultural Market Studies in 2014 Russia exported 57,000 tonnes of poultry, which is 5% more than in 2013.

The exports to Hong Kong saw a 45% increase, Vietnam a 201% year-on-year increase. At the same time, the Russian Agricultural Ministry expects that export of poultry will increase fourfold within the coming five years to about 200,000 tonnes by 2020. The most promising markets according to experts are South-East Asia and the Middle East, which Russia eyes to supply with halal poultry. The Chinese and Indian markets also look quite promising.

Source:worldpoultry.net

India Containerized Shredded Scrap Import Prices Stay Stable; Plastic Scrap Prices Show Mixed Trend

Indian containerized shredded scrap import prices continued to stay stable in the week ended May 15, while Indian plastic scrap prices on Scrap Register Price Index showed mixed trend.
 
The major plastic scrap commodities showed a mixed tread on Scrap Register Price Index during the week. The plastic scrap like HD blowing, HD moulding(colour), PVC resin desi, LLDP Blowing are traded up, while acrylic, C.P.W, hips(baff), PVC pest grade showed a down treand.
 
According to the Steel Index, imports of scrap into India remained uninspiring the week as a number of factors conspired to keep the market depressed.
 
The prices of sponge iron and locally sourced scrap are still low, ensuring imported scrap struggles to remain competitive. Demand for finished long products is still poor and, despite the potential for increased exports to Nepal after the recent earthquakes, the market remains pessimistic.
 
With talk of an increase in duties on imported steel once again flattering to deceive and the monsoon season fast approaching, market participants are struggling to see any meaningful positive demand or pricing movements until Q3 this year.

Source:metal.com

India Seeks To Tap Into Vast Private Gold Hoards

Indian policy makers have long sought to curb their citizens’ rapacious appetite for imported gold — tonnes of which are believed to be stashed away under mattresses, in cupboards and in the hidden vaults of Hindu temples.

But after the failure of gold import bans, restrictions and high tariffs, Prime Minister Narendra Modi’s administration is trying a new tack to reduce India’s hunger for imported gold.

It is planning to launch a new scheme to try to entice institutions and individuals to deposit their gold holding with banks, in exchange for interest payments — which could even be tax-free.

By tapping into India’s vast treasure trove of domestic gold — which the World Gold Council estimates could be as much as 22,000 tonnes, New Delhi hopes to provide a domestic source of the precious metal for jewellers to meet growing demand for wedding ornaments, thus pruning the country’s import bill.

But there is a catch: gold depositors must consent to having their precious metal melted down and recycled, which may be acceptable to those holding gold biscuits or bullion but will deter those with sentimental attachment to their jewellery.

Though the scheme’s precise details are still being worked out, analysts say the government hopes to woo affluent families now keeping savings as gold bullion, or Hindu temples, many of which — like the Sree Padmanabhaswamy Temple in Kerala — also have large stashes of gold donated by devotees, much of it biscuit or bullion form, hidden in their vaults.

“If you have sentimental reasons for attachment to the jewellery or its designs, then you are not the target audience for the scheme,” says Sonal Varma, chief India economist at Nomura. “It should be high net worth individuals, or middle-income households storing gold for investment. The temple trusts are also a primary target.”

Indians last year imported nearly 900 tonnes of gold — its second-largest import item after fuel. In 2013, India’s hunger for gold was blamed for the soaring current account deficit and heavy pressure on the currency, and prompted an attempted clampdown on imports. Restrictions have since been relaxed, and gold imports are again rising — up 78 per cent in value terms to $3.1bn year-on-year in April.

At least 65 per cent of gold imported into India is used to make jewellery for Indian brides, who wear the ornaments on their wedding day and then keep them as long-term financial assets, hedged against inflation and currency volatility. In emergencies, Indians routinely use gold ornaments as collateral to secure loans from informal money lenders.

Puran Doshi, who owns a jewellery shop in Mumbai, said he was doubtful that many Indian families would entrust their gold to a bank fixed-deposit style scheme, which would turn what is now a fairly liquid asset into an illiquid asset.

“Women are possessive about their jewellery — even if their husbands ask for it they don’t give it straight,” said Mr Doshi, who also gives customers loans against gold deposits. “They will only give it for emergencies, and only for cash.”

India had previously tried a gold deposit scheme in 1999 but results were poor, with interest rates too low to give customers an incentive to participate. Banks have also expressed doubts about the costs of running such complex schemes.

But Ms Varma said even if a small minority of Indians or wealthy temples participate in the scheme — and it raises 100 to 200 metric tons of gold a year — it would help cut India’s gold import bill by billions of dollars. “It’s an interesting concept,” she said.

Source:ft.com

Even refund of excess self-assessment tax paid by assessee would be entitled to interest

IT: Assessee would be entitled to interest under section 244A(1)(b) on amount of refund which was deposited by it by way of self assessment tax under section 140A

Karnataka VAT : Revisional authority cannot pass fresh assessment order as it can only direct AO to

CST & VAT : Karnataka VAT - Where Revisional Authority after setting aside assessment order proceeded to pass a fresh reassessment order under section 63A on assessee, Revisional Authority could only direct Assessing Officer for a fresh assessment order and could not proceed to pass a fresh reassessment order

Exemption not claimed at initial stage of import amounts to 'forgoing exemption'; it can't be claime

Excise & Customs : Where benefit of exemption notification was not claimed at initial stage of import, i.e., when such benefit was forgone, same cannot be claimed by a subsequent act at later stage

Food tasting and development exp. incurred by 'Yum Restaurant' to develop new recipes was revenue ex

IT : Where assessee provided support services to KFC franchisees in India and to US brand holders of KFC as well, in a systematic and organized way continuously over a period, service income earned was to be treated as business income

Rupee Opens Lower At 63.62 Per Dollar

The Indian rupee on Monday weakened against the dollar, tracking the losses in the Asian currencies market. The local unit opened at 63.62 per dollar and touched a high and low of 63.62 and 63.59, respectively. At 9.08am, the home currency was trading at 63.62, down 0.15% from its previous close of 63.52.

 

The Sensex fell 0.21% or 59.56 points to 27,897.84 points. The yield on India’s 10-year benchmark bond was trading at 7.862% compared with its Friday’s close of 7.857%. Bond yields and prices move in opposite directions.

 

Since the beginning of this year, the rupee has lost 0.75%, while foreign institutional investors have bought $6.80 billion from local equity and $6.02 billion from bond markets.

 

Most of the Asian currencies were trading lower. South Korean won was down 0.81%, Malaysian ringgit was down 0.51%, Thai baht was down 0.2%, Indonesian rupiah was down 0.14%, Philippines peso was down 0.11%, Singapore dollar was down 0.11% and Japanese yen was down 0.1%.

 

The dollar index, which measures the US currency’s strength against major currencies, was trading at 99.285, up 0.28% from its previous close of 96.014.

 

On Friday, Federal Reserve chairwoman Janet Yellen said a rate hike would be warranted this year if the economy keeps improving as expected.

 

Source:livemint.com

Receipt on transfer of units at initial construction stage are taxable as per percentage of completi

IT: Where assessee, a developer, having constructed commercial units, transferred same at initial stage of construction alongwith significant risks and rewards of ownership to buyers, assessee's income had to be taxed on year to year basis by applying percentage completion method

Deptt had to return bank guarantee once Director General of Foreign Trade discharged assessee’s expo

Excise & Customs : Bank guarantees/pay orders furnished by assessee, pending grant of Export Obligation Discharge Certificate ('EODC') must be returned back to assessee after Director General of Foreign Trade has granted EODC to assessee; department continues to have liberty to initiate legal proceedings permissible in law

Comparable earning commission couldn’t be taken as benchmark for an entity working on ‘cost-plus’ mo

IT/ILT : Where assessee operating as a procurement support services company for its AE i.e. GAP US, declared income on model of reimbursement of operating cost plus a markup of 15 per cent, TPO could not make addition to assessee's ALP by adopting a specific rate of commission on value of goods procured by GAP US directly from third party vendors from India

Sec. 33AB relief given to tea manufacturer on profit arising from tea grown by it after its blending

IT : Where assessee had utilized entire tea grown by it in its garden and by blending same with tea purchased from outside manufacturers, it had manufactured final product, entire profit arising out of such manufacture would get the benefit of section 33AB as only 11 per cent tea was purchased from outside manufacturers

No invocation of extended period if all facts were disclosed in letter addressed to Deptt. after fil

Excise & Customs : Where subsequent to filing of bill of entry, full facts were disclosed in letter addressed to Department, it was not a case of wilful misstatement/wrong declaration and, hence, extended period could not be invoked

High Court's Division Bench is competent to re-schedule payment of sums due in winding up petition

CL : Company Court and Division Bench being an extension of Company Court under section 483 is competent to re-schedule payment of sum due in a petition for winding up

Sec. 33AB relief given to tea manufacturer on profit arising from tea grown by it after its blending

IT : Where assessee had utilized entire tea grown by it in its garden and by blending same with tea purchased from outside manufacturers, it had manufactured final product, entire profit arising out of such manufacture would get the benefit of section 33AB as only 11 per cent tea was purchased from outside manufacturers

Profit rightly estimated on gross receipt as assessee failed to produce evidence in support of expen

IT : Where a civil contractor did not produce salary and wage register and other evidences in support of expenses incurred, Assessing Officer was justified in estimating profit at 8 per cent of gross contract receipts

Tribunal can't condone delay in filing applications for 'Rectification of Mistake'

Excise & Customs : There is no power to condone delay in filing Rectification of Mistake (ROM) applications; hence, ROM applications beyond 6 months from date of final order, must be rejected as barred by limitation

No mandatory pre-deposit of duty for disputes arose before August 6, 2014

Excise & Customs : In cases where lis between assessee and department commenced prior to introduction of mandatory pre-deposit in section 129E (i.e., before amendment by Finance (No. 2) Act, 2014 i.e., before 6-8-2014), same would be governed by erstwhile section 129E and mandatory pre-deposit would not apply thereto

ITAT slams AO for not adjudicating on contention that sum paid to AE wasn't taxable on grounds of mu

IT/ILT: Revenue should have adjudicated assessee's plea relating to non-taxability of payment made to foreign associate on basis of principle of mutuality

Addition of dehydrated vegetables and spices to raw rice to sell it as 'rice and spice' doesn't amou

Excise & Customs : Mere addition of dehydrated vegetables and certain spices to raw rice to sell it as 'rice and spice' would not make it a different product, as its primary and essential character still remains same; hence, it is not manufacture

COMPAT could revive application alleging unfair trade practice if same was filed prior to repeal of

Competition Act : Inability of MRTP Commission to dispose of application for revival of complaint containing allegations of unfair trade practices till repeal of MRTP Act cannot operate as detriment of complainant and Tribunal would have jurisdiction to entertain revival application

Trade advances given to shareholder won’t be held as deemed dividend

IT : Even if trade advance is given to shareholder or a concern out of accumulated profits, same would not fall within ambit of provisions of section 2(22)(e)

Sec. 80-IA: Profit on sub-leasing of land was deductible, being integral part of business of develop

IT : Assessee-company was incorporated as a Special Purpose Vehicle (SPV) for developing operating and maintaining toll roads. Assessee entered into a concession agreement with Taj Expressway Development Authority (TEA) in terms of which assessee was to develop, operate and maintain six lane access controlled expressway toll road, it was granted by TEA, rights for land development of 25 million sq. mts. of land along proposed Expressway for commercial amusement, industrial, institutional and res

Provision for obsolete stock was excludible for computing operating margin if it wasn't made by any

IT/ILT: Where assessee had created a provision for obsolete stock which had not been made by any comparable company, to determine ALP of international transaction of assessee, provision being an extraordinary item, suitable adjustments be made

Deptt. has to adjust legible tax credit against tax liability even if assessee has claimed excess cr

CST & VAT : Gujarat VAT - Once on assessment or reassessment a final amount of input tax credit is assessed and determined, a dealer is entitled to adjust such input tax credit against its output tax liability of current year

Brought forward losses couldn’t be set-off against interest income as such income wasn’t proved as b

IT : In absence of any material to show that interest income was business income, such income could not be treated as business income of assessee in order to allow set off of brought forward business loss from earlier years against said interest income

Provisional figures of census data are to be considered to determine status of bank as 'rural branch

IT: In order to determine status of a bank as a 'rural branch' for allowing claim of deduction under section 36(1)(viia) even provisional figures of census data available on first day of relevant financial year can be taken into consideration and if figure shown in provisional population total exceeds 10,000, then bank would not be entitled to benefit granted for rural branch

IRDA unveils report of expert committee on health insurance

INSURANCE : Report of Expert Committee on Health Insurance

ICSI appoints Atul Hasmukhrai Mehta as new nominee of National Advisory Committee on AS

COMPANIES ACT, 1956 : Section 133 of the Companies Act, 2013, Read with Section 210A of the Companies Act, 1956 - Central Government to Prescribe Accounting Standards - Constitution of National Advisory Committee on Accounting Standards - Notified Persons – Amendment in Notification No. SO 2425(E) [F.No.1/5/2001-Cl.v (Part V)], Dated 18-9-2014

Govt. withdraws old Ind AS notified in 2011

COMPANIES ACT, 1956/AAA/INDIAN ACTS & RULES : Companies (Accounting Standards) (Amendment) Rules, 2011 - Notified Ind AS – Rescission of Notification No. GSR 179(E), Dated 3-3-2011 and Notification No. GSR 650(E), Dated 29-8-2011

Interest paid on tax dues couldn't be set-off against interest earned on tax refund

IT : Where power is generated through steam and said industrial undertaking complies with all other conditions as stipulated under section 80-IA, it would be an eligible undertaking for claiming deduction in terms of section 80-IA(4)

No revision to disallow interest due to borrowings in making FD as this case was revenue neutral

IT : Where assessee used a part of loan taken from bank for making fixed deposits, even if income from interest on 'fixed deposit' was considered as income from other sources, still interest incurred by assessee on borrowings used for making said deposits would be allowable as deduction

AO to transfer VAT collected on activation on SIM cards to ST Deptt. as such transaction is a servic

CST & VAT : Haryana VAT - Where collection of VAT from assessee was without authority of law and Service Tax department had raised service tax demand upon assessee for period for which Assessing Authority had levied and collected VAT, Assessing Authority was to be directed to transfer amount of VAT to Service Tax department

Manufacture of 'route markers' by cutting pipes and painting would be valid activity u/s 80-IC

IT : Manufacturing of 'Route Markers' by undertaking process of cutting stainless steel pipes of larger sizes with electrical cutter including painting and welding of pipes, amounts to 'manufacture or production' entitling assessee to deduction under section 80-IC

Income from letting out of equipment and rendering of services to oil exploration co. is taxable und

IT/ILT : Income of assessee, a foreign company, from hiring of equipments and rendering services to entities engaged in oil exploration in India, was to be taxed on presumptive basis under section 44BB

SLP admitted against HC’s order holding that rule 8D was applicable as mixed funds were utilized for

IT : SLP granted against order of High Court where it was held that since funds utilized by assessee being mixed funds, interest paid on borrowed fund relatable to investment made in tax free funds was to be computed under provisions of rule 8D(2)(ii)

Grinding of wheat into wheat products like Maida, Atta, Suji amounts to manufacture; not liable to S

Service Tax : Conversion of wheat into wheat products (maida, atta, suji and bran) using process such as cleaning, grinding, milling, etc. amounts to 'manufacture' and not liable to service tax under Business Auxiliary Services

Proceedings before SetCom should abate if delay in passing order is due to any reason attributable t

IT : Only such proceedings would abate under section 245HA(1)(iv) which had been delayed on account of any reason attributable on part of applicant

Freight was includible in value of goods as assessee failed to prove that freight was charged separa

CST & VAT : Rajasthan VAT - Where assessee sold diesel to railways and delivered same by road through tanks at delivery point, since assessee was unable to lead any evidence to effect that freight was charged separately and was paid separately by railways, freight formed part of sale price

SAT upheld penalty on failure of Co. to obtain registration of SCORES within stipulated time

SEBI : Failure to obtain SCORES Login ID and password for redressing investor grievances within time stipulated by SEBI would constitute violation of section 15C

No reassessment to disallow exp. due to verdict of SC in other case if impugned issue was examined i

IT: Where Assessing Officer and Transfer Pricing Officer were not only aware of payment of royalty but had taken same into consideration at every stage, reopening of assessment on ground that on account of Supreme Court's ruling part of royalty was to be treated as capital expenditure, would be case of change of opinion which is not permissible in law

Subway doesn’t have dominant position in fast foods restaurant chains due to presence of Pizza Hut,

Competition Act : Due to the presence of many competitors in the market of fast food restaurant chains, like Pizza Hut, KFC, Mc. Donald's, Cafe Coffee Day, etc., consumers have several options to choose from. Subway neither has strength to operate independently of its competitors, nor the ability to affect its competitors and consumers. Therefore, Subway does not enjoy a dominant position in the relevant market of fast food restaurant chains

ITAT not to hear appeal ex-parte if new date wasn't intimated to assessee after adjournment of previ

IT : Where request for adjournment of hearing was made by assessee and it was not clear as to whether assessee was put on notice about new date of hearing, Tribunal ought not to have heard appeals ex parte

Deptt has to prove payment as bogus in order to deny credit availed on such payment

Cenvat Credit : Supplementary duty paid by job-worker at direction of assessee-principal on 'excess value', cannot be denied as credit in hands of assessee, unless transaction itself is questioned as bogus and department proves that there was no payment of excess value and duty thereon by assessee to job-worker

No denial of depreciation due to non-usage of plant in particular period once it had been used for b

IT : Where assessee company paid management consultancy fees and had filed evidence in support of said services rendered to assessee, matter was to be readjudicated to decide claim under section 37(1)

No disallowance of interest on loans if it was shown that borrowed funds were utilised to earn busin

IT : Where in case of assessee, engaged in construction activities, there was clear nexus of utilization of borrowed fund for earning income in form of interest, rent and business income of construction, his claim for deduction in respect of interest on borrowed capital was to be allowed