AO should grant stay in high pitch assessment considering old Instruction of CBDT

IT : In case of high pitch assessment Assessing officer should follow Instruction No. 95 to grant stay of demand. Instruction No. 95 was not superseded by subsequent Instruction No. 1914.

LIC can't refuse to register multiple assignments of life insurance policies, rules Apex Court

Insurance Laws: Life Insurance policies are freely tradable and assignable and, thus, multiple assignments are permitted [Position prior to amendment of section 38 of the Insurance Act, 1938 substituting section 38(2) by the Insurance Laws (Amendment) Act, 2015]

No abuse of dominance by 'Uber' in providing taxis at low fares; CCI rejects complaint of Meru Cabs

Competition Act : Where there was existence of yellow taxis which posed a significant competitive constraint on other taxi operators in the city of Kolkata. In such a scenario, it was difficult to accept the contention of the Meru cabs regarding UBER Group's dominance in providing the radio taxi services in Kolkata

SC to rule whether addition of deemed dividend can be made to concern in which shareholder has subst

IT: SLP granted against High Court's ruling that where recipient of loan, namely, assessee-company was not a shareholder of lending-company, section 2(22)(e) would not apply merely because two shareholders of lending-company had a beneficial ownership of shares in assessee-company

Cabinet approves signing of protocol amending India-Slovenia DTAA

IT/ILT : Section 90 of the Income-Tax Act, 1961 – Double Taxation Agreement – Agreement for Avoidance of Double Taxation and Prevention of Fiscal Evasion with Foreign Countries – Slovenia – Protocol Amending Convention Between India and Slovenia

Cabinet approves signing and ratification of agreement for exchange of information between India and

IT/ILT : Section 90 of the Income-Tax Act, 1961 – Double Taxation Agreement – Agreement for Avoidance of Double Taxation and Prevention of Fiscal Evasion with Foreign Countries – Maldives – Agreement Between India and Maldives for Exchange of Information With Respect to Taxes

No addition of notional interest in excisable value on booking amount collected by Hero Honda

Excise & Customs: Interest on deposits received by assessee from customers cannot be added to excisable value where price is market-driven and not determined on 'cost plus basis and deposits were not significant enough to influence price

Co. having income from sale of IP rights can’t be compared with a software development service provi

IT/ILT: A company having income from sale of I.P. rights is incomparable to software development service provider

India Offers To Import More Crude From Iran

New Delhi: India offered to step up crude oil imports from Iran as soon as sanctions imposed by the West are lifted early next year.

The offer was made at a high-level meeting in the capital on Monday between external affairs minister Sushma Swaraj and visiting Iranian minister of economic affairs and finance Ali Tayyebnia.

A person privy to the discussions said that payment channels for oil shipments, which are partly blocked now, will be opened next year, allowing for higher imports from Iran, which supplied 6.5 million tonnes of crude in the first half of the fiscal.

“Iran offers 90-day credit and free shipping, which makes Iranian crude attractive for Indian refiners,” said the person, who asked not to be named.

Currently, India pays 45% of the import bill in rupees through UCO Bank. The remaining, which is to be paid in euros, is blocked on account of the restrictions on financial institutions dealing with Iran. This amount will be paid once channels open.

Sanctions are expected to be lifted in January. On 20 July, Iran reached an agreement with the US, the European Union and the UN, accepting long-term restrictions on its nuclear programme in return for lifting of trade and financial sanctions.

“The amount of extra crude to be purchased from Iran would depend on the terms offered,” said the person.

The mix of crude Indian refiners import (Indian basket) has now fallen to a decade low of $33-34 a barrel and a further decline in price appears likely. Refiners source about 10-20% of their requirement from global spot markets to take advantage of falling prices.

Swaraj and Tayyebnia discussed the prospects of boosting oil trade at the India-Iran Joint Commission meeting in the capital. The visiting official had also met Prime Minister Narendra Modi to discuss cooperation between the nations on oil and gas, investment and connectivity on Monday.

Indian refiners importing Iranian crude—Mangalore Refinery and Petrochemicals Ltd (MRPL) and Essar Oil—are likely to bargain hard considering the downward pressure on crude prices.

“A large part of the Middle East and African crude earlier supplied to the US is now being diverted to Asia in the wake of surplus oil in America. The US, which had 5.5 million barrels per day production a few years ago, now has an output of over 9 million barrels a day. The lifting of export ban on American producers too is expected to influence the price of oil in world markets,” said R.S. Butola, former chairman of state-owned refiner Indian Oil Corporation.

The economic slowdown in China and the sluggish growth in Europe too are expected to add to the bearish sentiment in crude prices in the short term. Refiners like MRPL and Indian Oil Corp. Ltd have been a beneficiary of the decline in crude oil price, though it has dealt a blow to upstream producers like ONGC and Oil India Ltd.

Iran is currently the fifth largest oil supplier to India. Kuwait, Saudi Arabia, Nigeria and Venezuela are the other leading suppliers. It was India’s second largest supplier, after Saudi Arabia, till 2010-11, and lost its share on account of the sanctions.

India, which has 22 refineries with a capacity of 215 million tonnes a year, hopes to become a refining hub catering to regional demand and will import about 188.23 million tonnes of crude oil this financial year.

Source :livemint.com

Service of order at assessee’s address and receipt thereof by his nephew is a valid service : HC

Service Tax: If order is served on a member of family, it is duly served and there is sufficient service; hence, receipt of order by assessee's nephew at assessee's correct address amounts to a 'valid service'

CLB’s jurisdiction in respect of an oppression plea ceases where final relief is granted

CL: Once CLB disposes of petition complaining of oppression and mismanagement finally by making a final adjudication of rights of parties and ordering final relief under section 402, it ceases to exercise any jurisdiction

CLB can't interfere with enforcement of security interest by secured creditor under SARFAESI Act

CL : Company court has no jurisdiction to issue directions to a securitization co or a secured creditor who has opted to stay outside winding up and invoke its power u/s 13 of SARFAESI ACT to enforce its security interest by sale without intervention of court or tribunal

IRDA allows insurers to continue existing non-compliant Micro-Insurance products till March 31, 2016

INSURANCE : Extension of Date for Continuance of Existing Micro Insurance Products

Govt. notifies Negotiable Instruments (Amendment) Act, 2015

BANKING/INDIAN ACTS & RULES : Negotiable Instruments (Amendment) Act, 2015

Settlement amount paid by firm on behalf of its partner couldn’t be treated as exp. in its hand

IT: Where partnership firm of H and D dissolved and in terms of compromise, all assets and liabilities were taken by H, if subsequently H formed new firm taking new partners, payment made by new firm to D in terms of compromise between H and D could not be allowed

Dealers effecting sales via own website need not to file DVAT returns specified for e-com dealers

VAT : Clarification on Entities Providing Facility of Electronic Shopping (Commonly Known as E-Commerce) Through Their Web Portals

IRDA notifies new norms on issuance of capital by Indian life insurance Companies

INSURANCE/INDIAN ACTS & RULES : IRDAI (Issuance of Capital by Indian Insurance Companies Transacting Life Insurance Business) Regulations, 2015

No denial of exemption on intermediate goods if exempted final product cleared as per Rule 6 of CCR

Excise & Customs: Where assessee is engaged in manufacture of both dutiable and exempted final products and exempted final product is cleared on payment under rule 6 of CENVAT Credit Rules, exemption under Notification 67/95-CE cannot be denied in respect of intermediate goods

Apex Court directs refunding of stamp duty to purchaser as transaction of sale was cancelled by Cour

Stamp Act: Where transaction of sale of property between parties was not accomplished and Court had cancelled that contract, applicant was entitled to claim refund of stamp duty paid for purchase of that property

Dept. can’t decide whether a co-operative society is a bank or not as same is a matter to be resolve

IT: Income-tax Authorities possess no jurisdiction to resolve controversy as to whether co-operative society is a co-operative bank and, this issue is to be resolved by RBI

If goods are sold in transit only then such sale could be treated as subsequent sale under CST Act

CST & VAT: Central Sales Tax - Where assessee, a contractor, in terms of a works contract supplied goods to contractee for being used in turnkey project and claimed that it was a subsequent sale under section 6(2), since supply contract provided that goods purchased by assessee would be inspected initially by contractee and thereafter to be transported by assessee to work site of contractee in other State, supply of goods was not a subsequent sale

CBDT specifies procedure for handling 'Limited Scrutiny' cases

IT/ILT : Section 143 Of The Income-Tax Act, 1961 – Assessment – Scrutiny Assessment – Some Important Issues And Scope Of Scrutiny In Cases Selected Through Computer Aided Scrutiny Selection (CASS)

HC ordered sale of pledged shares to recover shortfall in repayment of overdue sum

Contract Act: Where loan of a company had been secured by respondent company by depositing shares belonging to their company by executing Non-Disposal Agreement/Loan Purchase Agreement with appellant bank and relevant clauses of agreement clearly mentioned that agreement would subsist till all dues of appellant bank were paid in full, in event of non-payment of shortfall in case of default, said shares were to be sold to recover shortfall

Now AOs to issue scrutiny notice along with questionnaire to convey compliance requirement

IT/ILT : Section 143 Of The Income-Tax Act, 1961 – Assessment – Scrutiny Assessment – Issuing Questionnaire In Cases Selected For Scrutiny

Withdrawal of warehousing facility isn't applicable on goods already cleared from factory

Excise & Customs : After withdrawal of warehousing facility, subsequent clearances to warehouse without payment of duty can be stopped; but, goods already cleared from factory to warehouse, cannot be denied benefit/terms under which they were cleared from factory

Issue of classification of Optical Fibre Cables by telecos referred to larger bench of CESTAT

Central Excise/Customs : Issue whether "Optical Fibre Cables" imported by assessee and used in Telecommunication are :

Govt. issues revised text for Bilateral Investment Treaty; excludes tax matters from its ambit

IT/ILT : Revised Model Bilateral Investment Treaty

RBI issues report of committee on Medium-term path on Financial Inclusion

BANKING : RBI Releases Report of Committee on Medium-Term Path on Financial Inclusion

A Co. can’t be excluded from list of comparables merely on ground of low turnover

IT/ILT: A company cannot be excluded from list of comparables on ground of its lower turnover as quantum of turnover can be no reason for exclusion of a company, which is otherwise comparable

Minimum Import Price, Tariff Barriers Can Curb Steel Imports: Jspl

Fixation of a minimum import price and imposition of WTO compliant tariff barriers can help curb the spate of cheap steel imports into the country from China, Japan and Korea, a top official from Jindal Steel & Power Ltd (JSPL) said here today.

"The steel industry is passing through a very difficult phase with most of the steel units running into losses. There is dumping of steel into the country by China, Japan and Korea. The domestic steel producers have made representation to the Government of India on the crisis and we are hopeful that the government will take necessary action", Naveen Jindal, chairman of JSPL told reporters after meeting the state chief secretary Aditya Padhee.

Jindal said many steel plants have invested heavily on their projects in Odisha but most of them were incurring losses. Moreover, 90 per cent of the sponge iron plants have shut down, throwing thousands of people out of employment.

"The state government needs to step in by enhancing availability of iron ore and coal. Besides this, the iron ore duty structure needs to be rationalised. Presently, the duty of high grade lumps is applied even on low grade iron ore fines. This should change", he suggested.

Jindal also pointed to the exorbitant water cess and the levy to the Water Conservation Fund which the steel industries were not in a position to pay.

Commenting on auctions of an iron ore block notified by the state government, he said "This is a welcome step. But so far, only one block has been notified. More iron ore blocks need to be notified for auctions."

JSPL would bid for the auctioned blocks depending on suitability, he said.

The JSPL chairman said the company was committed to expansion of the Angul steel plant. "The first phase of the Angul plant is completed. The plant capacity would be expanded to 3.5 million tonne per annum (mtpa) by the end of 2016 and six mtpa by March 2018", he informed.

Source :.business-standard.com

Interest to be levied on late payment of excise duty even if it was paid voluntarily and not determi

Excise & Customs: When there is admitted delay in payment of duty, interest is chargeable on delayed part of payment of duty even when duty was not determined under section 11A(2) and it was paid voluntarily; same position prior to 11.5.2001

India-Iran Strategic Partnership Discussed At First Joint Commission Meeting

NEW DELHI: The first India-Iran Joint Commission Meeting (JCM) since the historic nuclear deal and decision to ease sanctions from Tehran discussed measures to expand economic and strategic partnership including increasing oil imports from the Persian Gulf country besides disbursement of pending oil payments, investments by Delhi in Iran's hydro-carbon sector and tried to iron out irritants to seal the contract for key Chabahar Port by next month.

Iran's Minister of Economic Affairs and Finance Dr. Ali Tayyebnia, who is visiting for the bilateral Joint Commission meeting co-chaired by Foreign Miniser Sushma Swaraj, also discussed with the host the connectivity projects including International North-South Transport Corridor (INSTC) project and rail link between Chabahar Port and Zahedan.

While Swaraj is yet to travel to Tehran this is the second high-level visit from Iran to India since nuclear deal in Delhi. Iranian Foreign Minister was here in August. Tayyebnia also met the PM. A statement from Prime Minister's Office said, "Prime Minister conveyed that India attached high importance to its relations with Iran. He recalled his fruitful meeting with President Rouhani in Ufa, on the sidelines of the BRICS Summit, in July 2015. Prime Minister expressed readiness on the part of India to further strengthen bilateral relations, including in the areas of trade, investment, oil and gas, connectivity, port development. "

While this statement did not give specifics there was enough hint that the issues of India's investment ($ 85 million) in Chabahar Port and Iran's oil sector, increasing the oil imports from Tehran, joint projects and INSTC were on the agenda of discussions.

At the JCM Swaraj underlined the efforts underway to enhance bilateral economic cooperation in energy, infrastructure - including shipping, ports and railways - and trade and commerce. She stressed that connectivity afforded by Indian participation in Chahbahar Port will facilitate linking Afghanistan and Central Asia with India.
 

Source :economictimes.indiatimes.com

Russia May Soon Get 'Taste Of India'

VADODARA: Gujarat Co-operative Milk Marketing Federation (GCMMF), which markets brand Amul, is inching closer to export dairy products to Russia, making it the first Indian dairy major to enter that market.

After Prime Minister Narendra Modi's recent visit to Moscow, Amul is hopeful that Russia's Rosselkhoznadzor (also known as Federal Service for Veterinary and Phytosanitary Surveillance or FSVPS) - will soon allow imports of dairy products from India by removing 1,000 cows' farm condition.

A top GCMMF official was part of the Indian delegation that accompanied Modi during the visit.

Although Russia had evaluated India as their supplier last year, after visits to few Indian dairy plants in November 2014, FSVPS had come up with the suggestion that only those Indian dairy plants which own more than 1,000 cows shall be approved for export of dairy products to Russia. Amul had objected to this as an impractical non-tariff barrier as Russia had not imposed this condition in any other country from where it imports milk products.

Also, majority of farmers in India have 2 to 5 milch animals and there are not more than 2 to 3 farms across the country that have more than 1,000 cows as asked by Russian protocol.

Based on these facts, Amul had knocked the Centre's doors arguing that for paltry exports - less than 100 metric tonnes (MT) - India should not surrender to this special condition.

"If Russia agrees to see things in newer perspective, it will help Indian dairy co-operative sector especially at the time when it is holding high inventory of milk powder and is receiving very high milk," said R S Sodhi, GCMMF's managing director.

All co-operatives put together currently have an inventory of 50,000 MT milk powder while Amul alone procures 205 lakh litres per day milk.

Source :timesofindia.indiatimes.com

 

Indian Textile Firm To Pay $100000 For Using Pirated Software

WASHINGTON: An Indian textile company has been ordered to pay a $100,000 penalty within 30 days by a US court to settle charges of using pirated software that gave it competitive advantages over American businesses.

Headquartered in Madhya Pradesh's Indore, Pratibha Syntex Ltd exports cloths to top American companies including Walmart.

As per the settlement reached, which was filed in Los Angeles Superior Court and has been approved by a judge, the textile company has agreed to pay USD 100,000 in restitution within 30 days.

"Pratibha Syntex engaged in illegal business practices that placed California garment companies at a disadvantage, while hurting American software companies' ability to develop new and innovative products," California Attorney General Kamala Harris said.

"Businesses around the globe should be on notice that the state of California will hold them accountable for stealing intellectual property to unfairly undercut their competition," she said.

The case assumes significance as this is first time that a state government has secured a legally enforceable judgement against an international company for such violations.

In 2013, Harris sued Pratibha Syntex on the basis that it did not pay licensing fees for software it relied on for its business, including products manufactured by Adobe, Microsoft, and others, giving the company a significant cost advantage in the low-margin business of apparel manufacturing, shipment and sales.

Harris alleged that Pratibha Syntex gained an unfair competitive advantage over American-based companies by using pirated software in the production of clothing imported and sold in California.

Other terms of the landmark settlement prohibit Pratibha Syntex from using unlicensed software or reproducing any part of a copyrighted software program without the permission of the legitimate copyright holder, and further require the company to perform four complete audits of the software on their computers and fix any violations within 45 days, a media release said.

Source :economictimes.indiatimes.com

India's Silver Import To Set A New Record This Year

 Silver import in India is likely to set a new record in this calendar year due to rapid change in consumer preferences from imitation jewellery and artefacts made of alternative materials to silver.

Data compiled by precious metals consultancy Smaulgld.com showed India’s total silver import at 5,819 tonnes between January and September.

On an annualised basis, however, total silver import in calendar year 2015 is estimated at 7,759 tonnes, the highest ever India has imported in any calendar year so far, registering a rise of around 10% from the previous year. During the calendar year 2014, total import of silver was recorded at 7,083 tonnes.

Rising import of silver in India indicates a rapid change in consumers’ preferences over the last three years ever since its price started to fall. Unlike in the past, consumers now see a resale value in any form of silver purchase including jewellery, artefacts and investments products like coins and bars.

“As the trend shows from the volume of import between January and September, silver import in India will set a new record this year,” said Mohit Kamboj, President, India Bullion and Jewellers Association (IBJA), on the sidelines of World Silver Council inauguration here.

After a staggering 19.31% decline in 2014, silver prices fell by nearly 8% in 2015. This means, the downward cycle in commodities has made silver affordable for consumers with a price decline of over 26% in the last two years to $14.32 an oz today from the level of $19.47 on January 1, 2014.

Similar price decline was seen in local currency as well. Price of silver at Zaveri Bazaar is quoted at Rs 34,200 a kg now, a decline of 22% from the level of Rs 43,800 a kg on January 1, 2014.

“A large chunk of imported silver goes for retail consumption for jewellery and artefacts. The industry has witnessed a number of imitation jewellery consumers getting diverted towards silver ornaments due to falling prices. This does not mean that the demand of imitation jewellery has completely evaporated. But, their average annual growth has declined in favour of silver jewellery,” said Rahul Mehta, managing director, Silver Emporium, a silver jewellery and artifacts’ manufacturer and retailer in Zaveri Bazaar here.

As a consequence, there has been a rapid shift in silver consumption in the last 10 years. Global silver demand for industrial use has slumped to 54% of global output in 2015 versus 69.4% in 2005 and India is no exception. Similarly, demand from silverware/jewellery has risen to 25.4% to 26.5% and bars and coins from 5.2% to 19.5%.

“The industry needs promotion of silver jewellery and artefacts; similar to the World Gold Council does for gold. Once World Silver Council starts promoting silver ornaments and other articles, India’s silver demand and import would zoom further,” said Mehta.

Meanwhile, under the aegis of IBJA, the World Silver Council was launched to protect the interest of silver miners, importers, refiners, traders, jewellers and all other directly and indirectly linked with the white precious metal.

Along with the World Silver Council, the IBJA also launched two other initiatives — First Step Foundation for fulfilling its corporate social responsibility and Skill Development Council to help enhance the skills of the Karigars in the industry. These initiatives were launched at the hands of Ram Nath Kovind, Governor of Bihar.

Source:business-standard.com

Notice can be affixed at main door of assessee’s premises if he refuses to receive it

IT: Where Income Tax Officer deputed two Inspectors to make personal service of notice under section 148 upon assessee but assessee refused to receive said notice and, thereafter notice was affixed at main door of assessee's clinic, there was valid service of notice under section 148 upon assessee

Revisional proceedings under UP Trade Tax Act couldn't be objected even if such act was repealed b

CST & VAT : Uttar Pradesh VAT - Where U.P. Trade Tax Act had been repealed on 1-1-2008 by U.P. VAT Act and in meanwhile Assessing Authority made assessment of assessee for period 1-4-2007 to 31-12-2007 on 9-11-2009 under provisions of U.P. Trade Tax Act, remedy of revision provided under section 10B of repealed Act would survive repeal

No addition on basis of stocktaking if stock was valued on basis of cost or market price, whichever

IT: Where assessee had calculated valuation of closing stock on basis of cost price or market price, whichever is lesser, which was always permissible as per principle of accountancy and Settlement Commission accepted true and full disclosure made by assessee, on basis of stock taking, Assessing Officer could not make addition of an amount covered by such disclosure

No TDS liability of banks if FD is made on directions of Court during pendency of proceedings: CBDT

IT : Section 194A of The Income-Tax Act, 1961 - Deduction of Tax at Source - Interest Other than Interest on Securities - Notified Institution – TDS Under Section 194A on Interest on Fixed Deposit Made on Direction of Courts

Grading and certification of diamonds isn't manufacture

Excise & Customs: Activities of : (a) grading, (b) inscription; and (c) invoicing of diamonds i.e., diamond-certification cannot amount to manufacture of diamonds, as there is no change in essential character of diamond owing to said activities; however, issue whether same would amount to 'service' was left open

Additional Principal Secretary to the Prime Minister included in Search-cum-Selection Committee of S

SEBI/INDIAN ACTS & RULES : SEBI (Terms and Conditions of Service of Chairman and Members) Amendment Rules, 2015 – Amendment in Rule 3

Registration of a trust can’t be cancelled even if it was indulged in certain commercial activities

IT: Proviso to section 2(15) cannot be basis for cancellation of registration under section 12A

Rbi Sets Rupee Reference Rate At 66.13 Against Dollar

MUMBAI: The Reserve Bank of India on Monday fixed the reference rate of the rupee at 66.1380 against the US dollar and 72.5534 for the euro.

These rates were 66.20 and 72.41, respectively, on December 23.

According to an RBI statement, the exchange rates for the pound and the yen against the rupee were quoted at 98.6911 and 54.92 per 100 yens, respectively, based on reference rates for the dollar and cross-currency quotes at noon.

The SDR-rupee rate will be based on this rate, the statement added.

Source:- timesofindia.indiatimes.com

FinMin issues report of committee on revitalizing public private partnership model of infrastructure

CORPORATE LAWS : Report of the Committee on Revisiting and Revitalising Public Private Partnership Model of Infrastructure

Gold Imports Lose Steam, Fall 36.5% To $3.5 Billion In November

NEW DELHI: Gold imports shrank 36.5 per cent to $3.53 billion in November on the back of falling prices of the yellow metal, something that will keep the country's current account deficit (CAD) in check.

The prices have been declining at global as well as domestic markets.

The gold imports stood at $5.57 billion in November 2014, according to commerce ministry data. The figure for November this year is the highest in the current fiscal.

The contraction in imports helped narrow the trade deficit to $9.78 billion in the previous month. It stood at $16.2 billion in November 2014

Source :timesofindia.indiatimes.com

Govt's Cotton Purchases To Plummet As Pakistan Raises Imports

MUMBAI: The government's purchases of cotton are set to plunge 89 per cent in the 2015/16 marketing year as local prices have jumped after crop failures forced neighbouring Pakistan to raise imports from the world's biggest producer of the fibre.

The increase in shipments to Pakistan, Bangladesh and Vietnam will help India trim spending on cotton buys by nearly Rs 14,000 crore ($2 billion) in the year that started on October 1, although the rise in volumes on the international market will cap recent gains in global prices.

"Prices have moved above the MSP (minimum support price) level in most states and farmers are selling to private players," said BK Mishra, chairman and managing director of the state-run Cotton Corporation of India (CCI).

In a scheme to assist India's cotton farmers, the CCI buys raw cotton fibre from them at Rs 4,100 per 100 kg, while in spot markets prices have risen to Rs 4,300 to Rs 4,800.

In the year to September 30, India spent Rs 16,000 crore to buy 8.7 million bales at the MSP as top consumer China started slashing imports.

In the current marketing year, the government purchases were again expected to rise to last year's level due to poor demand from China. But a sudden increase in demand from Pakistan and a decision by India's top producing state Gujarat to buy from farmers at levels higher than the MSP boosted prices and reduced the need for state support.

The government will likely spend just Rs 2,000 crore for procurement of 1 million bales this year, Mishra said.

"We have bought 700,000 bales so far, but henceforth we are expecting a slowdown in purchases due to rising prices."

Spot prices of ginned cotton in India have risen nearly 5 per cent in a month to Rs 33,200 per candy of 356 kg.

"Demand is healthy for Indian cotton from Pakistan and other Asian countries," said Dhiren Sheth, president of the Cotton Association of India, adding that prices could stabilize around the current level.

"India has so far contracted 3.6 million bales for exports, including nearly 2 million bales to Pakistan," Sheth said.

Pakistan's overall cotton imports are seen climbing to at least 4 million bales in the year that started on August 1, from 1.2 million bales in the previous year due to an estimated 25 per cent drop in its own production.

India's cotton exports in the 2015/16 season are expected to rise 18 per cent to 6.8 million bales.

A drop in India's production due to a pest attack and the first back-to-back drought in nearly three decades has also been supporting prices, said Pradeep Jain, a ginner based in Jalgaon in the western state of Maharashtra.

A government body has estimated a 4 per cent drop in India's production in the current year. Traders are estimating a much steeper drop after floods hit cotton growing in the southern state of Tamil Nadu earlier this month.

Source :economictimes.indiatimes.com

November Asian Imports Of Iran Oil Drop 16.2% On India, Korea Cuts

TOKYO: Asian imports of Iranian oil in November fell by the most in nine months with India and South Korea cutting their imports as buyers mainly hold off on raising their purchases after July's landmark agreement on Tehran's disputed nuclear programme.

Imports by Iran's four biggest buyers - China, India, Japan, and South Korea - came to 894,685 barrels per day last month, down 16.2 per cent from the same month a year ago and the sharpest decline since February, government and tanker-tracking data show. However, imports rebounded 11.3 per cent from October.

The decline was mostly in line with loading data at Iranian ports for the arrival month. Exports to Asia are set to rise above 1 million bpd this month.

India and South Korea led the drop in Iranian imports. India's intake declined to 138,100 bpd, down 44.9 per cent from the same time a year ago and the lowest since March, while South Korean imports decreased to 97,200 bpd, down 28.8 per cent and the lowest since July.

Japan's oil imports from Iran in November rose 3.1 per cent from a year earlier to 168,285 bpd, trade ministry data showed on Monday.

Average total imports by the top four Asian buyers have fallen 7.1 per cent to 1.03 million bpd in the first 11 months of the year, the data showed.

Despite the slump in oil prices, Iran has vowed to ramp up crude oil production and reclaim its lost share of exports after international sanctions on the OPEC member are lifted in January 2016.

Iran's crude oil exports could rise by half a million barrels per day within 6-12 months once sanctions against it are lifted, Fatih Birol, Executive Director of the International Energy Agency (IEA), said this month.

The sanctions were introduced to keep Iran's exports at around 1 million bpd, down from 2.5 million bpd in 2011, and force Tehran to the negotiating table over its disputed nuclear activities. Western powers say the activity is a cover for building nuclear weapons, which Iran has consistently denied.

Under the accord reached in Vienna on July 14, Iran will be subject to longer-term restrictions on its nuclear programme in return for the removal of US, UN and European sanctions.

Source :economictimes.indiatimes.com

India's 2015/16 Palm Oil Imports Set For Smaller Gain Vs Soyoil

KUALA LUMPUR: India's palm oil imports will rise marginally in the year to October 2016 from current record highs as the commodity's discount to soyoil narrows on output worries, making it less attractive for buyers in the world's top edible oils consumer.

Palm oil prices have been outperforming soybean oil since August, gaining about 8 percentage points more on a threat to yields from what analysts have termed a "monster" El Nino weather pattern. Plentiful world soybean supplies have further tightened the price spread.

With palm becoming less competitive, India's purchases will climb only 100,000 tonnes to 9.7 million tonnes this marketing year, while soyoil purchases will surge 40 percent to 4.2 million tonnes, said Zia Ul Haq, trading manager at an edible oils procurement company IFFCO (S.E.A.) Sdn Bhd.

"The soyoil market is expected to be under pressure due to ample world supply while palm is trying to hold at current price levels," the trading manager said, explaining the tighter price spread. "Traders are expecting palm production to drop and the El Nino impact to kick in during the second quarter next year."

Palm prices soared 57 percent in 2009 partly due to an El Nino, which typically brings crop-damaging dry weather across Southeast Asia. Benchmark futures are currently near an 18-month top of 2,490 ringgit ($579.07) per tonne.

Higher demand from the biofuel sector for blending purposes will keep palm oil prices elevated, the trading manager said, dragging further on demand for the tropical oil.

Indonesia has been pushing for greater local use of edible oil-based biodiesel to cut its fossil fuel import bill and create more demand for palm oil, of which it is the world's biggest producer and exporter followed by Malaysia.

This comes at a time when global soybean oil output is expected to hit an all-time high of around 51 million tonnes in 2015/16, according to data from the U.S. Department of Agriculture (USDA).

Reflecting these fundamentals, the spread between soyoil and palm prices has narrowed about $40 over three weeks. Traders believe this could impact India's import demand.

The country consumes 18-19 million tonnes of vegetable oils annually and , of which about 9 million is palm oil.

USDA data shows India's palm oil imports rose 16 percent to a record 9.1 million tonnes in 2014/15, while soyoil arrivals surged 50 percent.

Leading vegetable oils analyst Dorab Mistry, however, said that higher soyoil use by India would drive up prices of the commodity, tilting the balance in palm oil's favour once again.

"Soyoil has limited availability. The bean is only 18-19 percent oil, you'd have to crush a lot to get a small amount of oil,"


Palm oil prices have been outperforming soybean oil since August, gaining about 8 percentage points more on a threat to yields from what analysts have termed a "monster" El Nino weather pattern. Plentiful world soybean supplies have further tightened the price spread.

With palm becoming less competitive, India's purchases will climb only 100,000 tonnes to 9.7 million tonnes this marketing year, while soyoil purchases will surge 40 percent to 4.2 million tonnes, said Zia Ul Haq, trading manager at an edible oils procurement company IFFCO (S.E.A.) Sdn Bhd.

"The soyoil market is expected to be under pressure due to ample world supply while palm is trying to hold at current price levels," the trading manager said, explaining the tighter price spread. "Traders are expecting palm production to drop and the El Nino impact to kick in during the second quarter next year."

Palm prices soared 57 percent in 2009 partly due to an El Nino, which typically brings crop-damaging dry weather across Southeast Asia. Benchmark futures are currently near an 18-month top of 2,490 ringgit ($579.07) per tonne.

Higher demand from the biofuel sector for blending purposes will keep palm oil prices elevated, the trading manager said, dragging further on demand for the tropical oil.

Indonesia has been pushing for greater local use of edible oil-based biodiesel to cut its fossil fuel import bill and create more demand for palm oil, of which it is the world's biggest producer and exporter followed by Malaysia.

This comes at a time when global soybean oil output is expected to hit an all-time high of around 51 million tonnes in 2015/16, according to data from the U.S. Department of Agriculture (USDA).

Reflecting these fundamentals, the spread between soyoil and palm prices has narrowed about $40 over three weeks. Traders believe this could impact India's import demand.

The country consumes 18-19 million tonnes of vegetable oils annually and , of which about 9 million is palm oil.

USDA data shows India's palm oil imports rose 16 percent to a record 9.1 million tonnes in 2014/15, while soyoil arrivals surged 50 percent.

Leading vegetable oils analyst Dorab Mistry, however, said that higher soyoil use by India would drive up prices of the commodity, tilting the balance in palm oil's favour once again.

"Soyoil has limited availability. The bean is only 18-19 percent oil, you'd have to crush a lot to get a small amount of oil,"

Source :economictimes.indiatimes.com

SC remanded matter back as certain docs allegedly on records were not considered by Tribunal

Excise & Customs : Supreme Court remands back issue of 'exclusion of transit insurance in computing excisable value', as certain invoices allegedly on record were not considered by Tribunal in passing final order

Credit on capital goods already received can't be denied on basis of subsequent amendment to law

Cenvat Credit : Subsequent amendment cannot, in any manner, be interpreted to take away right of assessee to take credit of capital goods already received prior to amendment; hence, credit of capital goods received prior to amendment cannot be denied relying upon such amendment

Running micro-finance business on commercial lines isn't charitable in nature

IT : Where assessee was carrying on micro finance business in a commercial manner so as to earn profit and there was no iota of charity carried on by it, its case was hit by proviso to section 2(15) and it was not entitled to exemption under section 11

Additional Principal Secretary to the Prime Minister appointed as whole time member of SEBI

SEBI/INDIAN ACTS & RULES : SEBI (Terms and Conditions of Service of Chairman and Members) Amendment Rules, 2015 – Amendment in Rule 3

No public offer required on increase in voting right due to forfeiture of shares: SEBI

SEBI/INDIAN ACTS & RULES : SEBI (Substantial Acquisition of Shares and Takeovers) (Fourth Amendment) Regulations, 2015 – Amendment in Regulation 10

'Ultratech' gets excise duty exemption on clinker captively consumed for manufacture of cement

Central Excise : Where assessee, a manufacturer of cement [final product], also manufactured clinker (intermediate product) and consumed same in same factory for manufacture of cement and during period 2004 to 2011 it cleared cement to SEZ units/developers without payment of duty, assessee was eligible for exemption from excise duty on clinker

Exp. incurred by solicitor on medical treatment of his eyes is personal expense; disallowable

IT: Expenditure incurred on medical treatment of eyes is personal in nature

Value of goods sold on credit basis to be reduced by interest on receivables if such interest was in

Excise & Customs : Where an assessee offers cash discount for immediate payment, it is clear that interest on receivables relating to credit period offered is also inbuilt into price and therefore, assessee is entitled to deduction in respect of interest on receivables inbuilt into price

Formula under Rule 8D for common interest exp. is inconsistent with legislative intent: HC

IT : Variable 'A' prescribed in the formula in Rule 8D(2)(ii) (to make disallowance in case of common interest expenditure) would exclude both interest attributable to tax exempt income as well as taxable income.

HC set aside unreasoned order of CESTAT passed without even recording revenue's contentions

Service Tax/Excise/Customs : Where Tribunal held assessee's contentions to be correct without assigning any reasons and, without even recording revenue's contentions, dismissed revenue's appeals, said order was liable to be set aside and matter remanded back for consideration afresh

No denial of Sec. 80-IA relief just because power is captively consumed by assessee in its business

IT : Benefit under section 80-IA cannot be denied to assessee, merely because power generated by its power undertaking was consumed at home or by other business of assessee and was not sold to outsiders

No CVD on DTA clearances by EOU if excise duty is exempt in India

Excise & Customs : For computing excise duty equal to customs duty on DTA clearances by EOU, CVD component of notional customs duty would be taken as Nil, if excise duty in India is exempt on 'no-cenvat condition'

No CVD on DTA clearances by EOU if excise duty in India on it is exempt

Excise & Customs : For computing excise duty equal to customs duty on DTA clearances by EOU, CVD component of notional customs duty would be taken as Nil, if excise duty in India is exempt on 'no-cenvat condition'

Loss/gain on FCCBs due to forex fluctuation as on balance sheet date is capital in nature

IT : Shares acquired cannot be treated as land or building, plant or machinery etc., but only as 'cost of project' for purpose of allowing deduction under section 35D

Discontinuation of supply of drugs to distributor for short span of time wouldn't amount to unfair t

Competition Act: Where a drug manufacturer had unilaterally and voluntarily stopped supply of drugs to informant distributor for a short span of time due to business exigencies it could not be said that it was in contravention of provisions of section 3

Freight beyond place of removal can't be included in excisable value of goods even if not shown sepa

Excise & Customs : There is no provision in excise law to deny benefit of exclusion of 'freight beyond place of removal' merely because same is not shown separately in excise invoice; hence, freight is not includible in value even if not shown separately in invoice

No reassessment on basis of info received from enforcement dept. if AO failed to examine return file

IT: Where Assessing Officer received information from Enforcement Directorate that in books of assessee there were huge cash deposits which were not explained, he could not reopen assessment on basis of said information alone without even examining as to whether amount in question was reflected in return filed by assessee

'Virginiamycin' is a vitamin and not an animal feed : SC

Customs : Virginiamycin, a pure chemical, is classifiable as 'Vitamin' and cannot be classified as 'animal feed', as same is not imported in premix condition

AO couldn't impose penalty without bringing out any specific charge for its imposition

IT: Before levying penalty under section 271(1)(c), it is incumbent upon Assessing Officer to state whether penalty was being levied for concealment of income or for furnishing of inaccurate particulars of income

Reassessment notice was invalid when Joint Commissioner had recorded his satisfaction in mechanical

IT: SLP dismissed against High Court's ruling that where Joint Commissioner recorded satisfaction in mechanical manner and without application of mind to accord sanction for issuing notice under section 148, reopening of assessment was invalid

Failure of assessee to prove that NR-agent has no PE in India leads to disallowance of commission fo

IT : In absence of any material on record as to whether non-resident agents appointed by assessee rendered services abroad and they had no business connection in India, question regarding assessee's obligation of deduction of tax at source on payment of sales commission to them was to be disposed afresh

IRDA asks insurers to report compliance with Indian ownership and control criteria by Jan 18, 2016

INSURANCE : Reporting of Compliance With Indian Ownership and Control

Failure to pay ST, penalty is to levied on the total amount of service tax determined by Central Exc

Service Tax : For computing reduced penalty of 25 per cent in section 78, 'service tax assessed or determined under section 73(2)' is taken, which shall include both : (a) sums paid prior to issuance of notice and appropriated in adjudication order; as well as (b) further sums confirmed as payable in adjudication order

An assessee can't be compelled to disclose the source of income of its creditors under sec. 68

IT : In terms of section 68, assessee is liable to disclose only source(s) from where he has himself received credit and it is not burden of assessee to show source(s) of his creditor nor is it burden of assessee to prove creditworthiness of source(s) of said sub-creditors

AO has to record his satisfaction under sec. 153C even if AO of searched person and other person is

IT : Even in cases where Assessing Officer of person searched and assessee who is sought to be assessed under section 153C is same, still Assessing Officer is required to record his satisfaction that assets/documents seized belong to a person (assessee) other than searched person

Bright line test can’t be applied to determine ALP of AMP exp.: Delhi HC

IT/ILT : Bright line test (BLT) is not a valid method for either determining the existence of international transaction or for the determination of ALP of such transaction

RBI directs banks and Govt. Accounts Department to disburse 8.7% interest on Special Deposit Scheme

BANKING : Special Deposit Scheme, 1975 – Payment Of Interest For Calendar Year 2015

Kerala Film Federation penalised for denying exhibition of Tamil and Malayalam films in Crown theat

Competition Act : Where evidences showed that exhibition of Tamil and Malayalam films to Informant theatre were denied at behest of OP association representing film theatres in Kerala and OP held position of strength in film industry in Kerala, conduct of OP was anti-competitive and penalty was to be imposed on it

Donations collected in name of Dera treated as unexplained as Dera wasn’t carrying out charitable ac

IT : Where assessee claiming himself to be a Sewadar of Historic Dera, deposited donations received in name of Dera in his own bank account and, moreover, he failed to prove that any charitable activity in terms of section 2(15) was ever carried out by him, authorities below were justified in making addition to his income under section 68 in respect of donations in question

AOs to specify their e-mail address in notices/letters to facilitate e-communication with taxpayers:

IT : Section 119 Of The Income-Tax Act, 1961 – Income-Tax Authorities – Instructions To Subordinate Authorities – Facilitating Taxpayers' Electronic Interface With The Department

CBDT reaffirm its commitment to exempt MAT on foreign Cos; directs disposal of pending MAT assessmen

IT/ILT : Section 115JB Of The Income-Tax Act, 1961 – Minimum Alternate Tax (Mat) – Applicability Of Mat On Foreign Companies For Period Prior To 1-4-2015

Now Pre-2005 banknotes can be exchanged till Jun 30, 2016

BANKING : Withdrawal Of All Old Series Of Banknotes Issued Prior To 2005

HC denied to grant bail to accused under PMLA as he failed to prove that his money wasn't tainted

PML Act: Where applicant was arrested for schedule offence of fraudulent remittance of foreign currency and he failed to prove money received by him was not crime money, bail could not be granted to him during period of investigation

Permission to store goods outside factory premises without paying duty can't be denied without assig

Excise & Customs : Without giving any reason, Commissioner could not deny extension of permission to store goods without payment of duty outside factory premises, when both Range Superintendent and Division Officer found case genuine

Interest rates in India can't be used to determine ALP of loan transaction designated in foreign cur

IT/ILT: Where ALP of an international loan transaction, which was designated in hard currency, is to be ascertained, interest rate on rupee transactions in India is not relevant

SEBI's International Advisory Board meets; discusses on implementing OECD principles of Corporate Go

SEBI : Sixth Meeting Of International Advisory Board Of SEBI

Now top 500 listed Cos. to include 'Business Responsibility Report' in annual returns

SEBI/INDIAN ACTS & RULES : SEBI (Listing Obligations And Disclosure Requirements) (Amendment) Regulations, 2015 – Amendment In Regulation 34

Allotment of shares in lieu of interest liability as per BIFR scheme held as actual payment under se

IT: When pursuant to settlement creditor agreed to convert a portion of interest into shares, it must be treated as extinguishment of liability for purpose of section 43B

CBDT unveils draft guidelines to determine 'Place of Effective Management' of a company

IT/ILT : Section 6 Of The Income-Tax Act, 1961 – Residential Status - Draft Guiding Principles For Determination Of Place Of Effective Management (Poem) Of A Company

IRDA asks insurers to comply with reporting requirement under FATCA and 'Common Reporting Standards

INSURANCE : Registration And Submission Of Information To CBDT For Compliance With Obligations Under Foreign Account Tax Compliance Act (FATCA)/Common Reporting Standards (CRS)

Refund of capacity based excise duty can be claimed even if factory was closed for one day

Excise & Customs : In context of capacity based excise duty, there is difference between 'temporary non-production for 15 days or more' and 'closure of factory'; in case of 'closure of factory' for even 6 days, assessee cannot be made liable to pay duty and if duty has already been paid, same is liable to be refunded back to assessee

Debenture-trustee can enforce security interest on behalf of debenture holders under SARFAESI

SARFAESI Act, 2002: Whether the respondent-debenture trustee of three debenture holders viz., (LIC, Canara Band and Oriental Bank of Commerce), which was neither a bank nor a financial institution and was not even registered as Securitisation company u/s 3 of SARFAESI could be treated as a secured creditor within the meaning of section 2(zd) of the SARFAESI Act? If yes, whether it can invoke the provision of SARFAESI for enforcement of security interest? Held- Yes

Payments by inflating purchases can't be deemed as loan or advance under sec. 2(22)(e)

IT : Payment of money by inflating purchases cannot be construed as loan or advance within meaning of section 2(22)(e)

Imports made by assessee, himself, at another port may be regarded as identical goods for custom val

Excise & Customs: In case of undervaluation of goods imported at Chennai port, imports of same goods made by assessee himself at Mumbai port may be regarded as 'identical/similar goods' and may be used to determine customs value of imports at Chennai

India To Save $44 Billion In Crude Oil Imports In Fy16; Case For Reducing Petrol, Diesel Prices?

The continuing slide in global crude oil prices is likely to result in a savings of about $44 billion this financial year for India, according to an analysis by the union ministry of petroleum and natural gas.

In its November 2015 report, the ministry's petroleum planning and analysis cell (PPAC) has said that the country's crude oil imports are likely to be around $69 billion this fiscal, down 39% from $113 billion last financial year. The Modi government could not have asked for more.

Highlights of the report:

Falling crude oil prices

Brent crude averaged $44.29/bbl during November 2015 as against $48.56/bbl during October 2015,w hile the Indian basket crude averaged $42.50/bbl during November 2015 against $46.68/bbl during in October, the PPAC said.

India's decreasing oil import bill

Petroleum products as a percentage of India's total imports stood at 18.8%, down from 21.3% in November 2014. The value of petroleum product imports came down sharply to $2.3 billion in November 2015, from $4.1 billion in November 2014, though the quantity also registered a modest fall.

Petroleum products as a percentage of India's imports for the period April to November 2015 was 21.2% as against 30.7% in the corresponding period last year.

Domestic consumption grows

The country's petroleum consumption grew 6.4% in November 2015, as against 4.9% in November last year.

The cumulative petroleum consumption during the period April to November 2015 grew 9.5% to 10.2 metric million tonnes,  when compared to the corresponding period last year.

Lower domestic production

The domestic crude oil production was 3.3% less in November 2015 at 103 tmt.

For the period April to November 2015, production grew at around 5% compared to the corresponding period last year.

Gross production of natural gas for the month of November, 2015 was 2,716 MMSCM which was lower by 3.9% compared with the corresponding month of the previous year (2,827 MMSCM).

LNG imports

LNG import during the month was 1,748 MMSCM, 18% higher than November 2014  at 1,481 MMSCM.

The cumulative LNG import at 13,889 MMSCM for the current year during April to November, 2015 was higher by 8.6% compared to 12,790 MMSCM during the corresponding period last year.

Oil import dependency up

India's import dependency has gone up from 78.1% during April to November 2014 to 79.9% in the same period this year.

In the absence of any planned shutdown, the capacity utilisation was 108.7% at Indian refineries.

Given these realities, will prime minister Narendra Modi and his finance minister Arun Jaitley take comfort in a rather comfortable fiscal position and reduce levies on petrol and diesel and thereby reduce petrol, diesel prices?

Source :.ibtimes.co.in

For TDS default action can be taken within a reasonable period if no limitation period is prescribed

IT : Before 1.4.2010, there was no limitation period under Section 201 of the Act for initiating action on TDS default. It was only by the Finance Act, 2009, the sub-section (3) to section 201 was inserted to provide for a period of limitation of –

Tribunal can't reverse its order in guise of rectification

IT: In guise of rectifying mistake, Tribunal cannot reverse its order

India's Gold Imports Likely To Jump 11% To 1,000 Tonnes In 2015

 India has already imported 850 tonnes of gold from January-September of 2015 as against 650 tonnes in the first nine-months of last year, according to the All India Gems and Jewellery Trade Federation.

   

Buoyed by a sharp fall in gold prices globally, India is likely to see a jump of 11% in imports of the metal to 1,000 tonnes this year, says a trade body.

According to the All India Gems and Jewellery Trade Federation, the world's second-biggest gold consumer had imported around 900 tonnes in 2014.

"Gold import is estimated at around 1,000 tonnes in 2015 calendar year compared to around 900 tonnes last year. Imports are likely to increase because of low global prices," All India Gems and Jewellery Trade Federation Chairman G V Sreedhar said at an event.

He said imports through smuggling are estimated to be around 100 tonnes this year.

According to the Federation, India has already imported 850 tonnes of gold from January-September of 2015 as against 650 tonnes in the first nine-months of last year.

Gold imports are expected to be 150-200 tonnes in the last quarter as against 300 tonnes in the year-ago period.

The World Gold Council has said in its latest report that India's gold demand in the October-December quarter will be more muted.

"Lingering concerns over the health of the rural Indian economy and local gold prices remaining in close proximity to Rs 27,000 per 10 grams level in recent weeks also give reasons to adopt a prudent outlook for the usual fourth quarter uplift in Indian demand," it had said in the report.

Although the upsurge in demand during July-September period partially compensated for the second quarter's poor turnout, it also ate into 'normal' seasonal demand that would take place between September and November, the report said.

Festival and wedding purchases were brought forward to take advantage of the price dip, therefore, demand towards the end of the year is likely to be correspondingly affected, it added.

Gold is the second-largest import item for India after petroleum. Higher gold import bill adversely affects the country's current account deficit.

Source :dnaindia.com

IRDA notifies norms on issuance of capital by Indian insurance Companies

INSURANCE/INDIAN ACTS & RULES : IRDAI (Issuance Of Capital By Indian Insurance Companies Transacting Other Than Life Insurance Business) Regulations, 2015

'Event management services' are eligible input services for advertising agency

Cenvat Credit : Event management services availed by advertising agency to procure advertising space in shows, etc. organized by such event managers, is eligible for input service credit in hands of such advertising agency

Advances written off by finance co. are allowable as bad-debts even if same are shown as investment

IT : Where assessee-company advanced money to another company in ordinary course of its business activity of finance and interest on it was assessed as its business income and on issue of debenture by said company amount due to said company could be written off under section 36(1)(vii)

Commissioners to send report of cases on which cost was imposed by CESTAT due to poor adjudication:

EXCISE : Imposition Of Cost By Cestat On Grounds Of Quality Of Adjudication Order