News flash : AI crisis threatens to snowball ; management terms protests illegal, workers warn of stepped- up action | Rail Budget 2009: A bogie of concessions and populist measures ; passenger fares, freight rates unchanged, West Bengal gets bonanza ; Kolkata Metro to be extended to more stations ; 57 new Trains to be introduced + Dozens of existing trains extended Turanto Scheme: Railways to introduce 12 NON-STOP point to point trains ; Izzat Scheme: Rs 225 monthly pass scheme for travel upto 100 km proposed + more concessions to students and minorities ; Railways land bank to be utilised for industrial development ; Container service: Premium service to be introduced Optic Fibre Cable Network: Sam Pitroda to head panel to suggest measures for commercial exploitation | Medical colleges to be set up in association with Railways hospitals on PPP model + Burn wards to be created at hospitals in metros Railways to raise battallion of women security personnel ; Double-decker coaches to be introduced for inter-city travelling Post Offices to offer railway tickets + Mobile ticket vans to be introduced | All MPs invited to suggest one place in their constituencies for ticket reservation centre | Govt to consider appointing doctors in long-distance trains | Railways to develop multi-functional complexes at 50 Stations 375 Stations to be developed as 'model stations' 'Janata Khana' to get priority in catering Mamta's priority: cleanliness, punctuality and good quality food | Five Indian firms in shortlist to exploit Afghan iron ore deposit | Govt clarifies no stamp duty exemption to SEZ developers for purchase or sale of land outside notified SEZ; notifies guidelines | Ambanis move SC on K-G gas case | I-T - perquisite - foreign national - employer pays to US Federal Insurance Authorities for social security benefits - AO treats it as perquisite - held, contribution to welfare schemes which entitles assessee to receive benefits only upon contingency, is not taxable perquisite | SBI offers Bharti Airtel Rs 4.8k-crore for MTN | Govt to enact Food Security Law to guarantee food to all citizens | India Inc praises Mamata budget | Income tax - end to end international long distance telecommunication services - not royalty; not fee for technical services; no permanent establishment - no tax payable in India by foreign company and no TDS: Advance Ruling | Air India staff have not yet understood gravity of fiscal situation : Jadhav | Overlapping duty rates due to multiple exemption notifications | NHPC, OIL divestment by March 2010 | Hindustan Unilever seeks to streamline its product portfolio; looks to eliminate and rationalise the tail- end of its stock keeping units, which amount to nearly 1,200 | Transfer pricing - price adjustment - CII for hiking price margin to (+/-) 10% I-T - deduction u/s 80HHC - CIT(A) directs AO to exclude excise duty and sales tax paid from total turnover for purpose of deduction - Held, in view of Apex Court decisions issue is no-longer res-integra | Century Textiles to develop Worli mill land for Rs 625 crore | UN body hails Delhi HC decision to decriminalise homosexuality | Govt lifts ban on wheat export |Mamata's bounty for West Bengal, bypassing Bihar | No proposal from CJI to set up SC Bench in South India: Law Minister | Economic Survey expresses concern over proliferation of SEZs | Employees gain : FBT is likely to be removed | I-T - Sec 57(iii) - deduction for interest on deposits with banks and on rent received from employees and oustees of dam - Revenue disallows - held, since construction had not commenced, interest income to be treated as capital receipt and deductions allowed: HC | AI told to start low- cost service | Multi-barrel attack on drugs syndicates: DRI makes a series of seizures across India | Non-stop trains can derail airlines' growth | CBDT to issue CITs' Annual General Transfer order post-Budget CESTAT - ROM is permissible even while matter is pending with Third Member - Tribunal has to frame points for determination and each point has to be answered: Bombay HC | 'Allow 24% FDI in FM radio'| Regulatory body for real estate sector mooted | 'Survey seeks end to cesses and FBT | 1.6% agriculture growth in '08-09 is a matter of concern, sector needs higher investments ( See 'Breaking News') | Commodity bubble would spark inflation to average 5% in 09-10 ( See 'Breaking News') |No proposal from CJI to set up SC Bench in South India: Law Minister | Disinvestment target set at Rs 25k crore | Economic Survey expresses concern over proliferation of SEZs | I-T - Sec 57(iii) - deduction for interest on deposits with banks and on rent received from employees and oustees of dam - Revenue disallows - held, since construction had not commenced, interest income to be treated as capital receipt and deductions allowed: HC | Call to allow free trade in spectrum | Multi-barrel attack on drugs syndicates: DRI makes a series of seizures across India | ' 'Ease FDI in insurance, retail to boost growth' |CBDT to issue CITs' Annual General Transfer order post-Budget CESTAT - ROM is permissible even while matter is pending with Third Member - Tribunal has to frame points for determination and each point has to be answered: Bombay HC | AI to give revamp plan in 30 days, SBI caps to help | I-T - Transfer Pricing - determination of ALP - TPO can invoke proviso to Rule 10B(4) for using prior years' data provided such data influences determination of transfer price - otherwise, it is mandatory for TPO not to ignore data relating to pertinent financial year: ITAT | Balancing act : Zero fiscal deficit is target | Income Tax - TDS - Remittances to non-residents under section 195 - Procedure for furnishing information | No penalty can be imposed under section 11AC of Central Excise Act, 1944 in respect of non-payment of amount due under Rule 6(3)(b) of Cenvat Credit Rules, 2004: CESTAT | Economy is sound, let's push reforms,says Economic Survey | Truckers to up rentals 6 to 12% | ST - construction of complex service - abatement of 67% - Assessee first avails credit on input services and also capital goods - then reverses same to avail abatement - Revenue denies it - held, once credit is reversed, assessee can avail other benefits | Wockhardt facing Rs 1,414-crore debt if CDR fails ; Auditors | Criminals pumping illegal money in football: FATF Report | AI staff to stage massive walkout today |Cenvat Credit not available on Security services, Rent-a-cab services, Mobile Telephony services as appellants have not adduced evidence to establish nexus, if any, between the 'services' and the manufacture of final products: CESTAT | Tech M stake in Satyam to be 42.7% after preferential issue | Base Paint sold to customers after mixing with colourant at dealers' premises is assessable under Section 4A of Central Excise Act: CESTAT | Tata Steel to sell GDRs for $600 million | Customs - confiscation of truck trailers - trailers given on rent - no mention in order as to how and which provision of law was contravened - no finding that containers contained smuggled goods - appellant not covered u/s 115(2) of Customs | Govt to review Companies Bill without tinkering ; Bill unlikely to be declared in the current session of Parliament | Deduction under section 80IB (10) in respect of undertakings developing building and housing projects - CBDT Clarifies | Govt under pressure to review fuel price rise | Income tax - Profit on sale of depreciable assets - To be assessed as Short-term Capital Gains u/s 50 and not as Business income u/s 41(2) | Refineries seek import duty cut on raw gold | Service Tax - Construction of Dam, Roads and tunnel as part of a Power Project - No Tax : Commissioner | Binani Zinc to treble capacity by '11 |Survey fails to lift market sentiment | I-T - Sec 263 - Assessment order without enquiry on allowability of deduction u/s 80IB on duty drawback - held, AO cannot remain passive in face of a return which is apparently in order but calls for further enquiry | Survey recommends agenda for commodity market reforms | CBDT posts 7 OSDs in Board - FT & TR, FTD, Inv and V & L | Govt hikes petrol price by Rs 4 per litre and diesel price by Rs 2 per litre from midnight ; no change in cooking gas, kerosene prices, negligible impact on inflation | Govt reviews ECB Policy; disallows automatic route to violators | Hindalco closes Novelis plant in UK, to recast capex plan | Income Tax Ombudsmen appointed - Pramod Kumar gets Bangalore ; Mumbai goes to A K Handa; Usha Gupta gets Kanpur; A K Jain (Delhi) and M C Katheriya (Ahmedabad) | Tech M now has 42% stake in Satyam | I-T - xeroxed copy of audit report certified by Director in absence of CA - AO objects - penalty - held, since there was bona fide cause for failure and there is no difference between photocopy and original, AO should have issued defect memo rather than initiating penalty : ITAT | FM approves FDI worth Rs 85 crore | Income tax - Microsoft subsidiary files return - claims business profits but no PE in India - Intimation u/s 143(1) - AO treats it as royalty and raises demand - Revenue cannot change character of income while acting u/s 143(1) - it can be done only during course of regular assessment: ITAT | Exports boosts Maruti, Hyundai sales in June | Cenvat Credit not available on Security services, Rent-a-cab services, Mobile Telephony services as appellants have not adduced evidence to establish nexus, if any, between the 'services' and the manufacture of final products: CESTAT | The Central Excise Baby DOSO | RIL decides to take RNRL to apex court on gas supply issue | Base Paint sold to customers after mixing with colourant at dealers' premises is assessable under Section 4A of Central Excise Act: CESTAT | JLR dangles carrot to push back salaries for 15 days | Amend Income Tax law on charity | Airtel enables 'business on the go' with cellphones | Customs - confiscation of truck trailers - trailers given on rent - no mention in order as to how and which provision of law was contravened - no finding that containers contained smuggled goods appellant not covered u/s 115(2) of Customs | Exports down by 29.2%; imports 39.2% in May ; merchandise exports contracted for the eighth consecutive month | Deduction under section 80IB (10) in respect of undertakings developing building and housing projects - CBDT Clarifies | Income tax - Profit on sale of depreciable assets To be assessed as Short-term Capital Gains u/s 50 and not as Business income u/s 41(2) | ICAI to conclude probe on Satyam scam by year-end | I-T - Sec 263 - Assessment order without enquiry on allowability of deduction u/s 80IB on duty drawback held, AO cannot remain passive in face of a return which is apparently in order but calls for further enquiry | R&R Bill 2007 , Land Acquisition Amend Bill face Mamata hurdle ; several large industrial projects have run into problems as a result of controversies over land acquisition | CBDT posts 7 OSDs in Board - FT & TR, FTD, Inv and V & L | As expected, CBDT again postpones implementation of UTN-based TDS system notified vide Notification No 31; Taxpayers advised to file returns without UTN | Sebi entry load ban may reduce NFOs | Govt appoints Ms Nirupama Rao as next Foreign Secretary + Mr M N Prasad, IAS of 1972 batch in PMO on contract basis TRAI looking for Legal Advisors on deputation | Quota in IIT faculties to stay ,says Sibal | Core Sector looking up; registers 2.8% growth rate in May | Give legal cover to judges, they will declare assets, says CJI |RIL defying court order : RNRL ; we are moving SC against HC judgment, says Ambani senior company | I-T - Sec 80P(2)(a)(i) - cooperative banks - interest income from investments in Kisan Vikas Patra & Indira Vikas Patra out of voluntary reserves - AO disallows - held, as long as investments are made out of funds from banking business, it is exempt income: Bombay HC | Shiv Nadar elevates daughter as HCL CEO | CBEC promotes, on ad hoc basis, 510 ACs ad Dy Commissioner | Deficit concern : Govt may not offer too many sops to industry | OECD urges all Members to keep doors open for migrant workers to meet future labour needs | SEZ developers get nod to raise funds overseas | I-T - non-resident - contract - percentage of completion method - No income to be offered for taxation if work not completed upto 25% of project; If there is no income, law does not cast duty to file return of income; HO expenses prior to setting up project office allowable: ITAT | R-Power in talks to sell 15% to foreign investor | Finance panel to provide compensation to states , UTs for 'flawless GST' implementation : Vijay Kelkar ( See 'Breaking News' ) | R. D. Goyal takes over as GAIL Director (Projects) | Press Notes 2,4 can't be retrospective , says FIPB | CBDT posts 7 OSDs in Board - FT & TR, FTD, Inv and V & L |PNB revises interest rates on non- resident deposits ( See 'Banking') | More emphasis on education sector, uniformity in taxation on packaged software mooted ( See ' Run- up to Budget 2009-10' ) | SBI improves its home loan offer | As expected, CBDT again postpones implementation of UTN-based TDS system notified vide Notification No 31; Taxpayers advised to file returns without UTN | No gas agreement with RNRL till govt approves, says RIL | Govt appoints Ms Nirupama Rao as next Foreign Secretary + Mr M N Prasad, IAS of 1972 batch in PMO on contract basis | TRAI looking for Legal Advisors on deputation | United Spirits raises Rs 950 crroe by selling 10 million Shaw Wallace shares ; plan to reduce leverage this year by a hird, more fund-raising to follow | Core sector looking up; registers 2.8% growth rate in May | I-T - Sec 80P(2)(a)(i) - cooperative banks - interest income from investments in Kisan Vikas Patra & Indira Vikas Patra out of voluntary reserves - AO disallows - held, as long as investments are made out of funds from banking business, it is exempt income: Bombay HC | CBEC promotes, on ad hoc basis, 510 ACs ad Dy Commissioner | OECD urges all Members to keep doors open for migrant workers to meet future labour needs | I-T - non-resident - contract - percentage of completion method - No income to be offered for taxation if work not completed upto 25% of project; If there is no income, law does not cast duty to file return of income; HO expenses prior to setting up project office allowable: ITAT | Govt to modify NREGA to plug loopholes |Liberhan panel submits Babri demolition report after 17 years | Customs - benefit of exemption notifications not allowed - Refund without challenging assessment - writ maintainable - assessment ordered to be modified: Bombay HC | Country's April- May fiscal deficit at over 27% of full-year target | Income Tax - Remittances to non-residents - Deductions - CBDT Instructions | France had banned crashed jet ; EU to propose airlines' blacklist | RIL refuses to sign gas pact ; says no deal on supply, pricing with RNRL without approval from govt | Indo-Mauritius DTAA - 'fixed place of business' should be in existence for a fairly long time - Applicant was in India for less than 9 months - NO PE - Not liable to pay tax in India: Advance Ruling | Govt may extend STPI tax benefit for one year | Service Tax - Value of SIM cards to be included in value of taxable services; since SIM cards are not goods, not liable to sales tax: High Court | Carlyle raises $ 1 billion , to invest in India, China | Goods falling under Tariff Heading 55.06 manufactured from duty paid inputs falling under Heading 55.01, entitled for exemption under Notification 30/2004-C.E: Bombay HC | Airlines look at possibility of fare hike as as fuel turns costlier again | Reddy's 100-day agenda: Excise exemption to public buses; Real Estate Regulator and more houses in Delhi | ST - Refund - construction of residential flats - refund claim on basis of Board's letter that no tax is leviable - unjust enrichment - held, since assessee's activities and unjust enrichment are to be examined in view of Board's letter, matter is remanded | Maharashtra ups VAT on mobiles, others may follow | CII for higher depreciation on IT products for SMEs