"January, 2012" Archive

Exposure Draft on Guidelines on Prospect Product Matrix for Life Insurance

Circular No. 16/CA/PPI/PPM/11-12 (31/01/2012)

On 18th June, 2010, the Authority had put up a draft in the nature of a Discussion Paper on the need to prescribe standards and procedures for Needs Analysis for sale of life insurance policies. Needs Analysis by the intermediaries and the insurance companies is necessary before effecting the sale of a life insurance policy in order to en...

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Tariff Value increased for Gold, Silver, Brass Scrap and Poppy Seeds

Notification No. 10/2012–Customs (N.T.) (31/01/2012)

Notification No. 10/2012 – Customs (N. T.) - Government has increased the tariff values of Brass Scrap (all grades) from USD 4007 to USD 4078 and changed the tariff value of poppy seeds from USD 1970 to 2205.The Tariff Value of Gold is increased from 526 to 556 USD per 10 grams and the tariff value of silver is increased from 953 to 10...

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MVAT – Additional List of Suspicious Dealers who has issued false bills without delivery of goods

Maharashtra Sales tax Department on its website hosted the List of Suspicious Dealers who has issued false bills without delivery of goods on its website. Sales Tax Department has first issued a list of 698 Dealers around a month back on 21.11.2011. Now the Sales tax Department has issued Additional List list of dealers who it is suspec...

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Posted Under: Corporate Law | ,

Yograj Infrastructure Ltd Vs. Ssang Yong Engineering & Construction Company Ltd. & ANR. (SC)

Yograj Infrastructure Ltd. Vs. Ssang Yong Engineering & Construction Company Ltd. & Anr. (Supreme Court of India)

Yograj Infrastructure Ltd Vs. Ssang Yong Engineering & Construction Company Ltd. & ANR. (SC) - The Supreme Court last week dismissed the appeal of Yograj Infras Ltd against the ruling of the Madhya Pradesh high court in its dispute with Ssang Yong Engineering & Construction Co. The National Highway Authority of India (NHAI) awarded a Rs 7...

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CIT Appeal to consider documents submitted by the Assessee before passing Ex-parte Order

Rujuta N. Shah V/s ITO (ITAT Mumbai)

Rujuta N. Shah V/s ITO (ITAT Mumbai)- At the time of hearing, the ld. counsel for the assessee submits that no proper and due opportunity was not provided to the assessee by the ld. CIT(A) inasmuch as, the ld. CIT(A) has also not considered the paper book filed by the assessee, while deciding the appeal ex-parte, therefore, in the interes...

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Refund of Statutory / ROC Fees Paid by mistake to MCA

Earlier there was no process in MCA21 for refund of fees wrongly paid by the stakeholder while availing various services at MCA 21. Now the Ministry has introduced process of refund of statutory fees paid for certain services. The refund of MCA21 fees is available in the following cases:...

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Posted Under: Corporate Law |

Units of mutual funds are not generally trading instrument – ITAT Mumbai

Shri Dev Ashok Karvat Vs. DCIT (ITAT Mumbai)

Shri Dev Ashok Karvat Vs. DCIT (ITAT Mumbai)- In Mr. Chetan R.Parikh V/s ITO in ITA No. 1569/Mum/2010 (AY: 2006- 07) dated 25.05.2011, it has been held by the Tribunal that the units of mutual funds are not generally a trading instrument because of comparatively low fluctuation and number of transactions in units are also not large....

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ICAI – Double home loan repayment exemption limit to Rs 3 lakh

Seeking relief for home buyers, accounting regulator ICAI has asked the Finance Ministry to double the tax exemption limit on loan repayment to Rs 3 lakh. "...it is suggested that the deduction in respect of interest on housing loan in case of self occupied property should be increased from Rs 1.5 lakh to Rs 3 lakh", ICAI said in a pre-Bu...

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Posted Under: Corporate Law |

ICAI panel on black money to submit report in a fortnight

The Institute of Chartered Accountants of India has said a committee constituted to suggest ways to check and bring back black money stashed in banks abroad will submit its report to the Finance Ministry within a fortnight....

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Posted Under: Corporate Law |

ICAI President’s Message – February 2012 – Amendment to the Statutory Auditor’s Reporting Responsibilities

ICAI Council at its 312th meeting had noted that till date the Central Government had not notified the effective date of Section 441A of the Companies Act, 1956. Consequently, no Rules thereunder had been prescribed by the Central Government. The Council, therefore, has decided that in view of the aforementioned situation, the statuary au...

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Posted Under: Corporate Law |

Master Circular on Memorandum of Instructions governing money changing activities – Updated as on January 31, 2012

RBI/2011-12/376 Master Circular No.13 /2011-12 (31/01/2012)

This Master Circular consolidates the existing instructions on the subject of “Memorandum of Instructions governing money changing activities” at one place. The list of underlying circulars/ notifications is set out in Appendix. This Master Circular is being issued with a sunset clause. It will stand withdrawn on July 1, 2012 and wou...

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Government Agency Business Arrangement – Appointment of Private Sector Banks as Agency Banks of Reserve Bank of India (RBI)

RBI/2011-2012/377 DGBA.GAD.No.H - 5029/42.01.033/2011-12 (31/01/2012)

As you are aware, currently all public sector banks are eligible to conduct Government business as agents of RBI. However, only three private sector banks viz. ICICI Bank Ltd., HDFC Bank Ltd. and Axis Bank Ltd. were appointed by RBI as its agents to carry out limited general banking business of the Central Government and of those State G...

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CA, CS, CWA Amendment Act, ICWA name change effective from 1st February,2012

Notification No. S.O. 192(E) (30/01/2012)

In exercise of the powers conferred by sub-section (2) of Section 1 of the Chartered Accoun­tants (Amendment) Act, 2011 (No. 3 of 2012) the Central Government hereby appoints the 1st day of February, 2012 as the date on which the provision of the said Act shall come into force....

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Press Release on signing of Convention on Mutual Administrative Assistance in tax matters as amended by the 2010 Protocol by India

Press Release No.402/92/2006-MC (4 of 2012) (27/01/2012)

Salient features of this multilateral convention are - It is based on international standard of transparency and exchange of information. - This instrument is multilateral and a single legal basis for multi-country co-operation as against the DTAAs/TIEAs which are bilateral. It provides for an extensive network and there will be consisten...

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Regarding implementation of the pneumatic tyres and tubes for Automotive Vehicles (Quality Control) Order, 2009 DIPP Office Memorandum dated 13-12-2011

F. No. 528/109/2011-STO (TU) (30/01/2012)

F. No. 528/109/2011-STO (TU) Attention is invited to CBEC instructions F.No.528/109/2011 – STO (TU) dated 29.11.2011, and 15.12.2011 on the issue of the implementation of the Pneumatic Tyres and Tubes for Automotive Vehicles (Quality Control) Order, 2009. Further reference has been received in the Board from Department of Industrial Pol...

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Constitution of Regional Advisory Committee of Central Excise Mumbai Zone-I

Trade Notice No. 1/RAC/CCO MUMBAI ZONE-I/2011-12 (30/01/2012)

It is brought to the notice of the Trade and Industry that the Central Board of Excise and Customs, New Delhi vide Circular No. 953/14/2011 issued vide F. No. 282/5/2008-CX-9(pt.) dated 12.09.2011 has directed that a single Regional Advisory Committee (RAC) for the Organised Sector and Small Scale Industry...

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TDS not deductible on freight chargers shown separately in Goods Purchase Bill

CIT Vs. Bhagwati Steels (Punjab & Haryana High Court)

CIT v. Bhagwati Steels -(Punjab & Haryana HC) -In the instant case, it was held that the payment of freight charges by the assessee to the truck drivers was based on individual GRs which represented individual and separate contracts and there was no single contract for carriage or transportation of goods referred to between assessee and t...

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Rate of exchange of conversion of each of the foreign currency with effect from 1st February, 2012

Notification No. 09/2012-Customs (N.T.) (30/01/2012)

Notification No. 9/2012- Customs (N.T.) In exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.88/2011-CUSTOMS (N.T.), dated the 28th December, 2011 vide number S.O.2914(E), dated the 2...

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Amends Notification No. 12/97-Customs (N.T.), dated the 2nd April, 1997 thereby notifying Tondiarpet (TNPM), Chennai as ICD

Notification No. 08/2012-Customs (N.T.) (30/01/2012)

Notification No. 8/2012 - Customs (N.T.) In exercise of the powers conferred by clause (aa) of sub-section (1) of section 7 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise and Customs, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of R...

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Deregulation of Savings Bank Deposit Interest Rate – Guidelines for Co-operative and Regional Rural banks

RBI/2011-12/374 RPCD.CO.RRB.BC.No.57/03.05.33/2011-12 (30/01/2012)

Based on the references received from banks, we clarify that the revised guidelines issued vide our circulars referred to above would be applicable to domestic savings bank deposits held by residents in India. Further, the interest rates applicable on the domestic savings deposit will be determined on the basis of end-of-day balance in th...

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Memorandum of Instructions for Opening and Maintenance of Rupee /Foreign Currency Vostro Accounts – A. P. (DIR Series) Circular No.72

RBI/2011-12/373 A. P. (DIR Series) Circular No.72 (30/01/2012)

With a view to give more operational leeway to the AD Category-I banks, it has been decided to dispense with the requirement of prior approval of the Reserve Bank for opening and maintaining each Rupee Vostro account in India of non-resident Exchange Houses in connection with the Rupee Drawing Arrangements (RDAs) that banks enter into wit...

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Memorandum of Instructions governing money changing activities – A. P. (DIR Series) Circular No.71

RBI/2011-12/372 A. P. (DIR Series) Circular No.71 (30/01/2012)

In view of the recent measures adopted to provide more flexibility to the Authorised Persons in selecting the location for their branches, it has now been decided to remove the criteria relating to increase in outreach and locational advantage while considering the applications for issuance of fresh licenses for Full Fledged Money Changer...

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Sebi (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2012

Notification No. LAD-NRO/GN/2011-12/34/2499 (30/01/2012)

Notification No. LAD-NRO/GN/2011-12/34/2499 These Regulations may be called the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2012. They shall come into force on the date of their publication in the Official Gazette....

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If agreement was on principal-to-principal basis, payments made by the assessee to the distributor cannot be treated as commission liable for TDS U/s. 194H

CIT Vs. Jai Drinks (P.) Ltd. (Delhi High Court)

CIT Vs. Jai Drinks (P.) Ltd. (Delhi HC)- In the instant case, it was held that since the agreement between the assessee and the distributor clearly stated that the agreement was on principal-to-principal basis, payments made by the assessee to the distributor were incentives and discounts and were not to be treated as commission liable fo...

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If asseee repaid the short term loan received by him the said amount could not be treated as income of assessee

CIT Vs. Saranapal Singh (HUF) (Punjab & Haryana Court)

CIT Vs. Saranapal Singh (HUF) (Punjab & Haryana Court)- In the instant case, it was held that where the assessee had received a certain amount as short term loan and was duly repaid the said amount could not be treated as income of assessee under section 56(2)(v) of the Act....

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In the absence of nexus between Education expenditure incurred for Director’s son and business of assessee company the same is not deductible

Echjay Forgings Ltd. Vs. ACIT (2010) 328 ITR 286 (Bombay High Court)

Echjay Forgings Ltd. Vs. ACIT (2010) 328 ITR 286 (Bombay High Court)- Can expenditure incurred by a company on higher studies of the director’s son abroad be claimed as business expenditure under section 37 on the contention that he was appointed as a trainee in the company under “apprentice training scheme”, where there was no proo...

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Taxability of waiver of principal amount of loan taken for purchase of capital asset or remission of trading liability

Iskraemeco Regent Ltd. Vs. CIT (2011) 331 ITR 317 (Madras High Court)

Iskraemeco Regent Ltd. v. CIT (Madras High Court) The assessee company, engaged in the business of development, manufacturing and marketing of electro-mechanical and static energy meters, took a bank loan for purchase of capital assets. The grant of bank loan for purchase of a capital asset is a capital receipt and not a trading receipt. ...

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Can an assessee engaged in letting out of rooms in a lodging house also treat the income from renting of a building to bank on long term lease as business income?

Joseph George and Co. Vs. ITO (2010) 328 ITR 161 (Kerala High Court)

Joseph George and Co. Vs. ITO (2010) 328 ITR 161 (Kerala High Court)- On the above issue, it was decided that while lodging is a business, however, letting out of building to the bank on long-term lease could not be treated as business. Therefore, the rental income from bank has to be assessed as income from house property....

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Can an assessee not claiming deduction under section 80-IB in the initial years claim the said deduction for the remaining years during the period of eligibility, if the conditions are satisfied?

Praveen Soni Vs Commissioner Of Income Tax (Delhi High Court)

Praveen Soni vs Commissioner Of Income Tax (Delhi HC) - On the above issue, the Delhi High Court held that the provisions of section 80-IB nowhere stipulated a condition that the claim for deduction under this section had to be made from the first year of qualification of deduction failing which the claim will not be allowed in the rema...

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Does income derived from sale of export incentive qualify for deduction under section 80-IB?

Commissioner of Income Tax Vs. Jaswand Sons (Punjab & Haryana High Court)

CIT Vs. Jaswand Sons (2010) 328 ITR 442 (P&H) - On this issue, the High Court held that income derived from sale of export incentive cannot be said to be income 'derived from' the industrial undertaking and therefore, such income is not eligible for deduction under section 80-IB....

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Exemption u/s. 54 in respect of more than one residential flat acquired by assessee under joint development agreement with builder

CIT Vs. Smt. K. G. Rukminiamma (Karnataka High Court)

CIT v. Smt. K. G. Rukminiamma - Can exemption under section 54 be claimed in respect of more than one residential flat acquired by the assessee under a joint development agreement with a builder, wherein the property owned by the assessee was developed by the builder who constructed eight residential flats in the said property, four of wh...

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Income tax & HRA Calculator + Form 16 + ITR AY 2012-13

Download Income tax Calculator for Individuals having Income from Salary and Interest Income for A.Y. 2012-13. The calculator Calculates taxable Income, tax Liability , Amount of HRA Exempt etc. In addition to that calculator automatically fills Form 16, ITR 1 Sahaj (Assuming No change in Format of A.Y. 2011-12) and automatically prepares...

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Capital Gain Calculator for Shares – Long Term and Short term gain

In this calculator which is in excel format you only have to mention the Date of Purchase, Date of sales, Purchase Value, Sales Value, Number of Shares and name of the script. The calculator will calculate the Long Term and Short term Capital gain on Sale of Shares automatically and provides a total at the bottom of Total Short Term Capit...

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Income tax Calculator for A.Y. 2012-13 & 2011-12

Income tax Calculator for A.Y. 2012-13 -This Calculator calculates Income Tax Liability of you in very simple way. You Just have to mention your date of birth as per PAN card then You have to select you category in which you fall. If you are aged less then sixty then you have to choose from the category Male or Female. If you are aged abo...

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CA in Delhi commits sucide

A 40-year-old chartered accountant committed suicide at his house in Rohini in outer Delhi in the wee hours of Saturday, the police said. The deceased, identified as Bharat Bhushan Chawla, a resident of Rohini Sector 16, was apparently under stress over a family dispute....

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Posted Under: Corporate Law |

Consolidated FDI Policy Circular-Issue of fifth edition of the Circular -Inviting comments from stakeholders

Department of Industrial Policy & Promotion had issued a Consolidated FDI Policy Circular (Circular 1 of 2010) on 31.03.2010,making all information on Foreign Direct Investment (FDI) Policy available at one place and subsuming all earlier Press Notes/ /Press Releases/ Clarifications regarding Government policy on FDI, issued by the Depart...

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Posted Under: Corporate Law |

Can AO tax the actual profits as per books of accounts, if the same is higher than 10% of receipts which deemed to be the profits u/s. 44BBB in case of a foreign company engaged in turnkey projects?

The Director of Income Tax Vs Dsd Noell Gmbh (Delhi High Court)

DIT Vs. DSD Noell GmbH (Delhi High Court)- Can the Assessing Officer bring to tax the actual profits as per books of accounts, if the same is higher than 10% of receipts which are deemed to be the profits under section 44BBB in case of a foreign company engaged in turnkey projects?...

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IASB and FASB seek to reduce differences in classification and measurement models for financial instruments

The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) today agreed to work together to seek to reduce differences in their respective classification and measurement models for financial instruments. The discussions will form part of the FASB’s ongoing redeliberation of a proposed Account...

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Posted Under: Corporate Law |

Waiver of Certain Requirements Relating to Preferential Allotment to Insurance Companies and Mutual Funds

Reservation to Holders of Convertible Debt Securities in Rights/Bonus Issues -On the issue of reservation to convertible debt holders in rights/bonus issues, it has been decided to clarify that reservation shall be available only to compulsorily convertible debt holders, since conversion in such cases is not at the option of the holders o...

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Posted Under: Corporate Law |

Govt to take up Indonesia’s proposal on coal tax

The government is trying to take up the issue of Indonesia proposing a tax of exports of coal at bilateral level, Coal Secretary Alok Perti said on Saturday. We have taken up the issues of export tax and restrictions in certain quality of coal by the Indonesian government with the Ministry of External Affairs and Finance Ministry, Perti s...

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Posted Under: Corporate Law |

ITAT can dismiss appeal for non attendance despite issue of notice to attend

Classic Shares & Stock Brooking Services Limited Vs. ACIT (ITAT Mumbai)

Classic Shares & Stock Brooking Services Limited Vs. ACIT (ITAT Mumbai)- This appeal was fixed for hearing on 16.01.2012. However, despite notice, none appeared on behalf of the assessee nor has it moved any application for adjournment. It is, therefore, presumed that the assessee is not interested in prosecuting its appeal. Accordingly, ...

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Allowability of bad debts under section 36(1)(vii)

ACIT Vs Ashima Dye cot Pvt. Ltd. (ITAT Ahmedabad)

ACIT Vs Ashima Dye cot Pvt. Ltd. (ITAT Ahmedabad)- After the amendment of section 36(1)(vii) of the Income-tax Act, 1961, with effect from April 1, 1989, in order to obtain a deduction in relation to bad debts, it is not necessary for the assessee to establish that the debt, in fact, has become irrecoverable: it is enough if the bad debt ...

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Would expenditure incurred on feasibility study conducted for examining proposals for technological advancement relating to the existing business be classified as revenue expenditure, where the project was abandoned without creating a new asset?

CIT Vs. Priya Village Roadshows Ltd. (2011) 332 ITR 594 (Delhi High Court)

CIT Vs. Priya Village Roadshows Ltd. (2011) 332 ITR 594 (Delhi) -In this case, the assessee, engaged in the business of running cinemas, incurred expenditure towards architect fee for examining the technical viability of the proposal for takeover of cinema theatre for conversion into a multiplex/ four-screen cinema complexes. The project ...

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Would the phrase “used for purpose of business” in respect of discarded machine include use of such asset in the earlier years for claim of depreciation under section 32?

CIT Vs. Yamaha Motor India Pvt. Ltd. (2010) 328 ITR 297 (Delhi High Court)

CIT v. Yamaha Motor India Pvt. Ltd. (2010) 328 ITR 297 (Delhi) - The issue under consideration in this case is whether depreciation is allowable on the written down value of the entire block, even though the block includes some machinery which has already been discarded and hence, cannot be put to use during the relevant previous year....

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Is the assessee entitled to depreciation on value of goodwill considering it as “other business or commercial rights of similar nature” within the meaning of an intangible asset?

B. Raveendran Pillai Vs Commissioner of Income­ Tax (Kerala High Court)

B. Raveendran Pillai Vs. CIT (2011) 332 ITR 531 (Kerala HC)- Under section 32(1)(ii), depreciation is allowable on intangible assets, being know-how, patents, copyrights, trade marks, license, franchise, or any other business or commercial rights of similar nature....

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What can be the tests to determine “substantial part of business” of lending company for the purpose of application of exclusion provision under section 2(22)?

CIT Vs. Parle Plastics Ltd. (2011) 332 ITR 63 (Bombay High Court)

CIT Vs. Parle Plastics Ltd. (2011) 332 ITR 63 (Bom.) Under section 2(22), dividend does not include, inter alia, any advance or loan made to a shareholder by a company in the ordinary course of its business, where the lending of money is a substantial part of the business of the company. The expression used in the exclusion provision of s...

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Would the procurements of parts and assembling them to make windmill fall within the meaning of “manufacture” and “production” to be entitled for deduction under section 80-IB?

CIT Vs. Chiranjjeevi Wind Energy Ltd. (2011) 333 ITR 192 (Madras High Court)

CIT v. Chiranjjeevi Wind Energy Ltd. (2011) 333 ITR 192 (Madras High Court)- The Supreme Court, in India Cine Agencies v. CIT(2009) 308 ITR 98, laid down that the test to determine whether a particular activity amounts to "manufacture" or not is whether new and different goods emerge having distinctive name, use and character. Further, th...

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Would grant of transport subsidy, interest subsidy and refund of excise duty qualify for deduction under section 80-IB?

CIT Vs. Meghalaya Steels Ltd. (2011) 332 ITR 91 (Gauhati High Court)

CIT v. Meghalaya Steels Ltd. (2011) 332 ITR 91 (Gauhati High Court) -The Supreme Court, in Liberty India v. CIT [2009] 317 ITR 218, observed that section 80-IB provides for deduction in respect of profits and gains “derived from the business” of the assessee and accordingly, the Parliament intended to cover sources of profits and gain...

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Can penalty u/s. 271(1)(c) be imposed in a case where assessee has raised a debatable issue?

Commissioner of Income Tax Vs. Indersons Leather (P) Ltd. (Punjab & Haryana High Court)

CIT Vs. Indersons Leather P. Ltd. (P&H HC)- The assessee company, after discontinuing its manufacturing business, leased out its shed along with fittings and disclosed the income as income from business, whereas the Revenue contended that the same be assessed as “Income from house property. The issue under consideration is whether penal...

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ICWAI revised fees payable by members w.e.f. 01.04.2012

The fees payable by the members of the Institute have been revised by the Council with effect from 1st April, 2012 from the financial year 2012-2013 onwards as follows:...

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Posted Under: Corporate Law |

Need to widen the reach of the mutual fund industry in the country- SBI Board

First meeting of SEBI’s International Advisory Board-Securities and Exchange Board of India (SEBI)’s International Advisory Board (IAB) held its first meeting in New Delhi today. SEBI constituted the IAB in September, 2011. The role of the IAB will be to guide SEBI and, in doing so, bring in the global experiences and emerging develop...

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Posted Under: Corporate Law |

Budget 2012- FinMin considers imposition of higher excise duty on Diesel cars

Diesel car buyers may have to shell out more with the Finance Ministry considering the imposition of higher excise duty on such vehicles in the upcoming Budget likely to be unveiled sometime in March. In order to discourage consumption of subsidised diesel by personal vehicle owners, the Petroleum Ministry had suggested the imposition of ...

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Posted Under: Corporate Law |

IT official convicted in bribary case

Chennai- An Income Tax official was today convicted for bribery charges in a case filed by the CBI. P K Chandrasekaran, Income Tax officer in the Office of Joint Commissioner of Income Tax, Tambaram range, was trapped in 2008 while demanding and accepting a bribe of Rs 1500 from one V Manikandan for releasing a refund of Rs 20,346. Upon c...

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Posted Under: Corporate Law |

India Signs Multilateral Convention on Mutual Administrative Assistance in Tax Matters

India has signed a Multilateral Convention on Mutual Administrative Assistance in Tax Matters. The Convention was signed by Shri Sanjay Kumar Mishra, Joint Secretary, Foreign Tax & Tax Research Division, Department of Revenue, Ministry of Finance, Government of India in the presence of Deputy Secretary-General of OECD, Mr. Rintaro Tamaki....

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Posted Under: Corporate Law |

India must have independent regulator for auditors – PwC

Supporting the capital market regulator Sebi's proposal for an independent auditing regulator in India, global auditing and consultancy major PwC has said there is an urgent need to have a strong and powerful watchdog for this business....

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Posted Under: Corporate Law |

Comments invited on the XBRL filings for Financial Year 2010-11

Dear Professional Colleague, The mode of  filing of the Financial Statements have undergone a sea change. Earlier from the physical filing of the records to e-filing and now to a totally new language of reporting called, XBRL. In the first phase of implementation, the scope of XBRL filing has been restricted to a limited number of [&hel...

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Posted Under: Corporate Law |

Insurance – AML/CFT guidelines – CIRCULAR NO. IRDA/F&I/CIR/AML/028/01/2012, DATED 27-01-2012

Circular No. IRDA/F&I/CIR/AML/028/01/2012 (27/01/2012)

Insurance companies are required to conduct detailed due diligence while taking insurance risk exposure to individuals/entities connected with countries identified by FATF as having deficiencies in their AML/CFT regime ......

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Additional Repo Operations under Liquidity Adjustment Facility (LAF) on Reporting Fridays

RBI/2011-2012/370 FMD.MOAG. No. 66 /01.01.01/2011-12 (27/01/2012)

At present, Reserve Bank of India operates Liquidity Adjustment Facility (LAF) to inject/absorb liquidity through daily Repo/Reverse Repo auctions. While the LAF Repo operations are conducted in the forenoon between 9.30 A.M. and 10.30 A.M., the LAF Reverse Repo operations are conducted in the afternoon between 4.30 P.M. and 5.00 P.M., al...

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Income Tax Calculator for A.Y. 2011-12, 10-11, 09-10, 08-09, 07-08

Download Income Tax Calculator for salaried For A.Y. 2011-12, 10-11, 09-10, 08-09, 07-08 for Male, Female, Senior Citizens. The calculator also calculate interest U/s. 234A, 234B and 234C, Automatically. Calculator for those having Income from Salaries. ...

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Delay in notice U/s. 143(2) Renders Assessment Void – HC

Alpine Electronics Asia Pte Ltd. Vs Director General of Income Tax & Others (Delhi High Court)

Alpine Electronics Asia Pte Ltd Vs. DGIT (Delhi HC)- Draft order is not the final assessment order and does not result in completion of assessment. Under sub-section (2) to Section 143, the assessee has a right to accept, within 30 days, the draft assessment order or has right to file objections with the Dispute Resolution Panel and the ...

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Public issue of Hudco Tax Free Bonds to open on 27 Jan 2012

State-run Housing and Urban Development Corporation (HUDCO) today said its public issue of tax-free bonds will hit the market on January 27 with a target of raising up to Rs 4,685 crore. The income by way of interest on these Bonds shall not form part of total income as per provisions under section 10 (15) (iv) (h) of I.T. Act, 1961; The...

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Petition in HC against minimum wages specified in CA Offices by Kerala State Government

CA Club, Thrissur, has filed a writ petition in Kerala High Court against the notification issued by Kerala State Government imposing minimum wages in Offices of Chartered Accountants in Kerala State. The writ petition was filed in Kerala HC by CA Club, Thrissur, on Tuesday, 24.01.2012 and was taken for hearing today ( Wednesday, 25.01.20...

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Posted Under: Corporate Law |

Procedure and FAQ for On-line Submission of Application for Verification of Answer Books for CA students

Candidates of November 2011 CA examinations Final, IPCE and PCE can submit their application for verification of answer books and also make payment of verification fees, on-line at http://icaiexam.icai.org. This facility will be in addition to the existing option for submission of application for verification of answer books, physically b...

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Posted Under: Corporate Law |

Get Your Firm Status Updated by 31.01.2012 for Empanelment with C&AG and Bank Branch Auditors’ Panel

For the purposes of Empanelment in the panel prepared by Office of C&AG and Bank Branch Auditors’ Panel prepared by ICAI (for which Constitution Certificates as on 1st January are issued every year); no condonation of delay in submission of Form No. 18 beyond 31st January preceding the financial year under audit (e.g. 31st January, 2012...

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Posted Under: Corporate Law |

ICAI issues Exposure Draft of Guidance Note on Rate Regulated Activities for comments

A key aspect of rate regulation is that the regulator is empowered to determine prices that bind the entity’s customers under a statute or otherwise. Regulatory authorities are usually set up under a legislation which stipulates their constitution, functions, powers etc. While such legislation may provide the general guidelines and cons...

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Posted Under: Corporate Law |

Ex – ITAT Members can practise before the Benches of Tribunal where they were not posted – HC

Dinesh Chandra Agarwal Vs. UOI (Allahabad High Court)

Dinesh Chandra Agarwal Vs. UOI (Allahabad High Court)- Rule 13E of Income Tax Appellate Tribunal Members (Recruitment and Conditions of Service) Rules, 1963 as amended on June 3, 2009 imposes a complete ban on practice by the retired members before the Income Tax Appellate Tribunal. Granting a interim relief Honorable high Court has hel...

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Validity of reopening of assessment should be judged only with reference to the reasons recorded by the Assessing Officer u/s.148(2)

Rajat Export Import India Pvt. Ltd. Vs Income Tax Officer (Delhi High Court)

Rajat Export Import India Pvt. Ltd. Vs. ITO (Delhi HC)- The reasons to believe recorded in writing by the Assessing Officer in the present case have been quoted earlier. They are detailed and show application of mind. The reasons record inferences and conclusions. We wanted to examine the material or evidence on the basis of which conclus...

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Salient Features of IRFC Tax Free Bonds – Opening on 27 Jan 2012

Indian Railway Finance Corporation Ltd - Issue period: 27 January 2012 to 10 February 2012. Issue of Tax Free Secured Redeemable Non Convertible Bonds . Basis of allotment: On a first-come-first-serve basis within each category. The income by way of interest on these Bonds is fully exempt from Income Tax and shall not form ...

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Budget 2012- Government may bring provisions to tax overseas deals

To avoid disputes like the Vodafone tax case in future, government is contemplating incorporation of provisions on taxation of overseas deals from the stalled Direct Taxes Code (DTC) Bill in the Budget for 2012-13....

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Posted Under: Corporate Law |

Punjab Polls – Candidates rope in CAs for managing poll expenses

With the Election Commission keeping a strict vigil on expenditure in the Assembly polls, many candidates have roped in tax experts like Chartered Accountants to ensure that their spending remains within the maximum limit. ...

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Posted Under: Corporate Law |

I-T official convicted in bribary case

An Income Tax official was today convicted for bribery charges in a case filed by the CBI. P K Chandrasekaran, Income Tax officer in the Office of Joint Commissioner of Income Tax, Tambaram range, was trapped in 2008 while demanding and accepting a bribe of Rs 1500 from one V Manikandan for releasing a refund of Rs 20,346....

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Posted Under: Corporate Law |

SEBI – Eligibility criteria for qualified depository participant

Circular No. CIR/IMD/FII&C/4/2012 (25/01/2012)

Vide SEBI circulars Cir/IMD/DF/14/2011 and Cir/IMD/FII&C/3/2012 dated August 09, 2011 and January 13, 2012 respectively, Qualified Foreign Investors (QFI) were allowed to invest in schemes of Indian mutual funds and Indian equity shares subject to terms and conditions mentioned therein, including opening a demat account with qualified Dep...

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Direct Tax Code, 2010 (DTC) – Income from House Property

As we are expecting the DTC be implemented from 1st April 2012, we have to be familiar with the DTC provisions. In general the DTC looks and be simple but it is complicated unless otherwise if we have studied the entire provisions of the act because, things are spread out here and there and which are disconnected with relevant provisions....

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Section 42(1) of the Reserve Bank of India Act, 1934 – Maintenance of CRR – Circular No. RPCD.CO.RCB.BC.No.56/07.02.01/2011-12

RBI/2011-12/371 RPCD.CO.RCB.BC.No.56/07.02.01/2011-12 (25/01/2012)

The Reserve Bank in its Third Quarter Review of Monetary Policy 2011-12 issued on January 24, 2012, decided to reduce the Cash Reserve Ratio (CRR) of Scheduled State Co-operative Banks / Regional Rural Banks by 50 basis points from 6.00 per cent to 5.50 per cent of their Net Demand and Time Liabilities (NDTL) with effect from the fortnigh...

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Rights of Person from whose income (payment) the tax has been deducted

If tax has been deducted at source in accordance with the provisions of Chapter XVII-B of Income Tax Act, 1961, the person from whose income (payment) the tax has been deducted i.e. Payee or assessee shall not be asked upon to pay the tax himself to the extent tax has been deducted(Sec.205). Moreover u/s.199 such tax deducted at source sh...

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Digitization of Manually filed Service Tax Returns

Calling of Tender for Digitization of Manually filed Service - Tax Returns pertaining to Service Tax-I, Mumbai Commissionerate. The Service Tax-I, Mumbai Commissionerate is inviting quotations from experienced Service Providers/Contractors having vast experience in the field of data management for capturing below mentioned fields from th...

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Posted Under: Corporate Law |

Vodafone ruling effect – Exporters question TDS on foreign payment post

The Supreme Court judgement on Vodafone tax case seems to have opened a Pandora's box with exporters too expressing reservation on tax deducted at source (TDS) for payment with regard to overseas transactions. Exporters' body FIEO today questioned the applicability of Section 195 of the Income Tax Act, under which they are asked to pay T...

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Posted Under: Corporate Law |

Inflation Forecasting- Issues and Challenges in India

Muneesh Kapur1 This paper focuses on modelling and forecasting inflation in India using an augmented Phillips curve framework. Both demand and supply factors are seen as drivers of inflation. Demand conditions are found to have a stronger impact on non-food manufactured products inflation (NFMP) vis-a-vis headline WPI inflation; moreover,...

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Posted Under: Corporate Law |

External Commercial Borrowings – Simplification of procedure

RBI/2011-12/366 A.P. (DIR Series) Circular No.69 (25/01/2012)

Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000, notified vide Notification No. FEMA 3/2000-RB dated May 3, 2000 and the A.P. (DIR Series) Circular No. 5 dated August 1, 2005 relating to the External Commercial Borrow...

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External Commercial Borrowings (ECB) Policy – Infrastructure Finance Companies (IFCs)

RBI/2011-12/367 A.P. (DIR Series) Circular No.70 (25/01/2012)

It has now been decided that the designated AD Category – I banks should certify the leverage ratio (i.e. outside liabilities/owned funds) of IFCs desirous of availing ECBs under the approval route while forwarding such proposals to the Reserve Bank of India....

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Deregulation of Savings Bank Deposit Interest Rate – Guidelines – DBOD.Dir.BC. 75/13.03.00/2011-12

RBI/2011-12/368 DBOD.Dir.BC. 75/13.03.00/2011-12 (25/01/2012)

Based on the references received from banks, we clarify that the revised guidelines issued vide our circular referred to above would be applicable to domestic savings bank deposits held by residents in India. Further, the interest rates applicable on the domestic savings deposit will be determined on the basis of end-of-day balance in the...

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Section 42(1) of Reserve Bank of India Act, 1934 –Maintenance of Cash Reserve Ratio (CRR)

RBI/2011-12/369 UBD.BPD. (PCB). CIR.No. 2 /12.03.000/2011-12 (25/01/2012)

The Reserve Bank in its Third Quarter Review of Monetary Policy 2011-12 issued on January 24, 2012, decided to reduce the Cash Reserve Ratio (CRR) of Scheduled Primary (Urban) Co-operative Banks by 50 basis points from 6.00 per cent to 5.50 per cent of their net demand and time liabilities (NDTL), with effect from the fortnight beginning ...

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No addition can be made U/s. 68 if Assessee furnished Acknowledgement of Income Tax Returns of persons who advanced money

ACIT Vs Ms Kiran Pal Singh (ITAT Delhi)

Whether the ld. Commissioner of Income Tax (Appeals) has erred in law and facts in deleting the addition of Rs.12,03,000/- in the partner’s capital account u/s 68 of the I.T.Act, 1961 ignoring the fact that the assessee had no evidence to prove the identity...

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S.143(2) Issue of notice is equivalent to its service

V.R.A. Cotton Mills (P) Ltd. Vs Union of India and others (Punjab & Haryana High Court)

V.R.A. Cotton Mills (P) Ltd. Vs. UOI (P & H HC)- The date of receipt of notice by the addressee is not relevant to determine, as to whether the notice has been issued within the prescribed period of limitation. The expression serve means the date of issue of notice. The date of receipt of notice cannot be left to be undetermined dependent...

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If Quantum appeal restored back to AO for de novo adjudication then penalty proceeding too deserves to be restored back

DCIT Vs. Shri Jayesh Chandulal Patel (ITAT Ahmedabad)

DCIT Vs. Shri Jayesh Chandulal Patel (ITAT Ahmedabad)- Parties appearing before us have fairly expressed that since the issue pertaining to the quantum addition had already been restored back to the file of the Assessing Officer with certain directions for de novo adjudication, therefore consequence thereupon these penalty proceeding dese...

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TRAI Exempts limit of 200 SMS Per day Per SIM for Machine to Machine and Person to Machine Messages

TRAI today exempted the machine to machine and person to machine messages from the limit of 200 SMS per day per SIM. All the provisions of “The Telecom Commercial Communications Customer Preference Regulations, 2010” issued by TRAI on 1.12.2010 have come into force from 27th September 2011. As per the provisions of such regulations, n...

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Posted Under: Corporate Law |

Section 233B of the Companies Act, 1956 – Audit of Cost accounts in certain cases – order under section 233B(1)

NA (24/01/2012)

ORDER [F.No. 52/26/CAB-2010], dated 24-1-2012 In exercise of the powers conferred by sub-section (1) of section 233B of the Companies Act, 1956 (1 of 1956), the Central Government, being of the opinion that it is necessary to do so, hereby directs that all companies to which the Companies (Cost Accounting Records) Rules, 2011 apply, and w...

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Notification No. 11/2012-Customs (ADD) New Delhi, Dated: 24.01.2012

Notification No. 11/2012-Customs (ADD) (24/01/2012)

Notification No. 11/2012-Customs (ADD) Whereas, in the matter of import of Geogrid/Geostrips/ Geostraps made of polyester or Glass fiber in all its forms (including all widths and lengths)’ (hereinafter referred to as the subject goods), falling under Chapters 39, 55, 56, 59 and 70 of the First Schedule to the Customs Tariff Act, 1975 (...

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Notification No. 10/2012-Customs (ADD) dated the 24th January, 2012

Notification No. 10/2012-Customs (ADD) (24/01/2012)

Notification No. 10/2012-Customs (ADD) Whereas, in the matter of import of Morpholine (hereinafter referred to as the subject goods), falling under tariff item 29333917 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) (hereinafter referred to as the said Customs Tariff Act), originating in, or exported from, China PR, Eu...

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Rescinds Notification No. 91/2011-Customs, dated the 20th September, 2011

Notification No. 09/2012-Customs (ADD) (24/01/2012)

Notification No. 09/ 2012-Customs (ADD) In exercise of the powers conferred by sub-sections (2) of section 9A of the Customs Tariff Act, 1975 (51 of 1975), read with rules 13 and 20 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, the Cen...

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New Initiatives under MCA 21 System- Integration with Trade Mark Authority, XBRL reporting

The Ministry of Corporate Affairs has established an added facility under MCA 21, integration with Trade Mark Authority recently. The added feature facilitates professional / public to cross verify Company name before applying for ROC approval....

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Posted Under: Corporate Law |

Third Quarter Review of Monetary Policy 2011-12 Press Statement by Dr. D. Subbarao, Governor

A short while ago, we put out the monetary policy measures accompanying this Review. Based on an assessment of the current macroeconomic situation, we have decided to: Cut the cash reserve ratio (CRR) of scheduled banks by 50 basis points from 6.0 per cent to 5.5 per cent of their net demand and time liabilities (NDTL). This will be e...

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Posted Under: Corporate Law |

RBI – Third Quarter Review of Monetary Policy 2011-12

Since the Second Quarter Review (SQR) of Monetary Policy in October 2011, there have been significant changes in the global scenario. On the one hand, concerns over the sustainability of sovereign debt problem in the euro area have intensified. On the other, there are modest signs of improvement in the US. In the emerging and developing e...

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Posted Under: Corporate Law |

RBI reduces Cash Reserve Ratio (CRR) by 50 basis points to 5.50 per cent

RBI/2011-12/363 Ref: DBOD.No.Ret.BC.74 /12.01.001/2011-12 (24/01/2012)

RBI/2011-12/363 - The Reserve Bank in its Third Quarter Review of Monetary Policy 2011-12 issued on January 24, 2012, decided to reduce the Cash Reserve Ratio (CRR) of Scheduled Commercial Banks by 50 basis points from 6.00 per cent to 5.50 per cent of their Net Demand and Time Liabilities (NDTL) with effect from the fortnight beginning J...

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Law ministry demands more info in ITAT case

The Law Ministry is in the process of seeking more information from CBI and other agencies to take a final call on the investigative agency's request seeking sanction to prosecute 20 members of IT tribunal for their alleged role in outsourcing writing of judgements to private individuals to favour them. ...

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Posted Under: Corporate Law |

Aadhaar is reliable and fool-proof – UIDAI

The Unique Identification Authority of India, UIDAI, has asserted that its system is reliable and can achieve the task of providing unique ID cards to the entire population of the country. It dispelled fears that the biometric technology being employed for the Aadhaar project is flawed....

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Posted Under: Corporate Law |

35 Customs and Central Excise Dept officers selected for Presidential Award

Notification No. 07/2012-Customs (N.T.) (24/01/2012)

NOTIFICATION NO. 7/2012(N.T) - 35 officers of the Customs and Central Excise Department have been selected for grant of Presidential Award of Appreciation Certificate for Specially distinguished record of service on the occasion of Republic Day this year....

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Appointment of 13 Hon’ble Members to the Appellate Tribunal

5 Accountant Members and 8 Judicial Members were administered oath of office on Monday 23.01.2012 in Court Room No 1 in Mumbai by Shri G.E. Veerabhadrappa, Hon'ble President who welcomed them to the ITAT Family. They are ...

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Posted Under: Corporate Law |

Macroeconomic and Monetary Developments -Third Quarter Review 2011-12

The Reserve Bank of India today released the Macroeconomic and Monetary Developments Third Quarter Review 2011-12. The document serves as a backdrop to the Monetary Policy Statement to be announced on January 24, 2012. ...

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Posted Under: Corporate Law |

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