The assessee was not able to offer any plausible explanation for the sum of Rs.30,40,000/- which was surrendered by the assessee. Further, during the course of survey, it was found that certain sale invoices were either not recorded in the books of account or were under invoiced.
With a view to further liberalizing the documentation requirements, the limit for foreign exchange remittance for miscellaneous purposes without documentation formalities, has been raised from USD 5000 to USD 25000 with immediate effect.
On a review, it has been decided that henceforth NRI as defined in Foreign Exchange Management (Deposit) Regulations, 2000 contained in Notification No. FEMA.5/2000-RB dated 3rd May 2000, as amended from time to time, shall be eligible to transfer funds from NRO account to NRE account within the overall ceiling of USD one million per financial year subject to payment of tax, as applicable (i.e. as applicable if funds were remitted abroad). Such credit of funds to NRE account shall be treated as eligible credit in terms of paragraph 3(j) of Schedule-1 of Notification No. FEMA.5/2000-RB dated 3rd May 2000.
As per the extant guidelines, ECB proceeds can be utilized for permissible foreign currency expenditure and Rupee expenditure. On a review, it has been decided that at the time of availing Loan Registration Number (LRN) from the Reserve Bank, borrowers should provide bifurcation of the utilization of the ECB proceeds towards foreign currency and Rupee expenditure in Form-83.
The fact that the Assessing Officer had accepted part of the loans indicates that the Assessing Officer not only accepted the identity and genuineness of the creditors but also the creditworthiness of the creditors. However, he chose to disallow a part of the loan without bringing on record any material to show that the assessee had any other source of income which could have been routed in the form of loan given by a third party. The fact that the assessment was completed in hurry is apparent, because the investigation commenced on 18-12-2007 and the assessment came to be made on 31-12-2007. The creditors have explained the sources of their deposits which in effect means that the sources were explained by the creditors. The Assessing Officer has not pointed out how the explanation is not convincing and merely proceeded to invoke provisions of section 68, that too for a part of the loan. Since the assessment was made in hurry, it is not specifically mentioned as to whether the interest on the loan was allowed or not but the fact remains that the relevant material placed before the Bench indicates that the assessee claimed interest payable on the loans and there was no specific disallowance in the assessment order, which implies that the interest was allowed by the Assessing Officer. Thus, considering the overall circumstances of the case, the Accountant Member was justified in holding that the initial onus placed upon the assessee stood discharged in the instant case and in the absence of any material to prove that the sources explained by the creditors are not genuine, the Assessing Officer was not justified in calling upon the assessee to prove the source of source.
Public Notice No.110/2009-2014 (RE-2010) 1. In exercise of powers conferred under paragraph 2.4 of the Foreign Trade Policy, 2004-09, the Director General of Foreign Trade hereby adds 5 new items of import and 7 new items of export under The Indo-China Border Trade:
Notification No. 32/2012-Income Tax In exercise of the powers conferred by sub-section (1) read with clause (b) of the Explanation to section 35AC of the Income-tax Act, 1961 (43 of 1961), the Central Government, on the recommendations of the National Committee for Promotion of Social and Economic Welfare, hereby notifies the institutions approved by the said National Committee, mentioned in column (2) of the Table below, and approves the eligible projects or schemes specified to be carried on by the said institutions and the estimated cost thereof as mentioned in column (3) of the said Table, and also specifies in the column (4) of the Table the maximum amount of such cost which may be allowed as deduction under the said section 35AC for the period of approval, namely:-
Notification No.115 (RE-2010)/2009-2014This amendment in paragraph amplifies that EOUs cannot supply marble in Domestic Tariff Area under Paragraph 6.9 of FTP, except under Paragraph 6.9(c) of FTP.
Surfing the Internet in trains without using a data card seems to be a distinct possibility now that the Railways have received the much-awaited clearance from space agency ISRO for using their satellite for the purpose.
