G-7 divided over rules
DAVOS, Jan 30 — The Group of Seven industrialised countries, has been sharply divided on overhauling international financial regulations, thus dimming prospects of any quick agreement on monitoring capital flows to prevent recurrence of a financial crisis.

• RESULTS

5-star hotel at Jalandhar
JALANDHAR, Jan 30 — Black Jack Tools will set up Punjab’s first 5-star hotel at Jalandhar, according to Mr Gautam Kapoor, Managing Director of the company, which has recently won a national export award. The hotel will be completed early next year.

G-7 divided over rules

DAVOS, Jan 30 (PTI) — The Group of Seven industrialised countries (G-7), has been sharply divided on overhauling international financial regulations, thus dimming prospects of any quick agreement on monitoring capital flows to prevent recurrence of a financial crisis.

While Japan, Germany, France and Britain pressed ahead for quick measures that would toughen regulations, monitoring and oversight of international flows of money through vehicles such as hedge funds, the USA did not favour creating new regulatory structures but stressed the importance of more openness and surveillance.

The stand taken by these countries towards global financial reforms was outlined by their officials during the ongoing annual meeting of the World Economic Forum (WEF) at the Ski Resort here.

Critics of the global financial institutions have blamed *lax oversight and insufficient safeguards* for the economic turmoil that spread from Asia through Russia to Brazil, in the last 18 months.

The British Chancellor of Eschequer Gorden Brown suggested the setting up of a “new global standing committee of international and national regulators to conduct regular and systematic surveillance of our world financial system”.

Promoters of Thapar Agro Mills missing

NEW DELHI, Jan 30 (UNI) —Nettled by the disinterest of the promoters of the sick Thapar Agro Mills Limited in rehabilitating the company, the BIFR has asked the financial institutions to initiate the process of changing the management.

Simultaneously, the board has directed the IFCI, which is the operating agency to prepare a revival package for the company which has three units -two in UP and one in Ambala.

Earlier, the board was informed that the promoters were missing as the company had failed to entertain repeated communications from IFCI, PSIDC and HSIDC.

“There has been no progress in the case at all after the last hearing on September 19,1997. The company’s management was not traceable despite the umpteen letters sent and a couple of meetings called,” IFCI, which has given Rs 15 crore loan to the company, told the bench.

PSIDC representative M Singh said despite several reminders to take back the possession of the assets, the promoters have chosen to remain mum. PSIDC had taken over the possession of the company’s Ambala soap unit following non-payment of its Rs two-crore dues.

However, the board had directed PSIDC in March 1998, on pleas from the promoters, to give back the assets to the promoters with the condition that they would not be sold to a third party.

Interestingly, company advocate Alok Dhir, who was present at the recent hearing, said he had no knowledge about the whereabouts of the promoters.

State Bank of Patiala, which had given credit to the extent of Rs 13.25 crore told the Bench that it did not have the company’s inventory position as it had not received any stock statement since September, 1997. Following the company’s false assurance on paying Rs 7 crore soon, the bank stated that it has lost all faith in the integrity of the promoters.

Punjab National Bank and HSIDC representatives told the Bench that the promoters had diverted and misutilised their entire loan for setting up a rice unit at Ambala. PNB sought the board’s permission to approach the debt recovery tribunal as they were not receiving any cooperation from the company.

Terming the disapperance of the promoters as “disturbing”, the board directed the IFCI to explore possibilities of sale of assets of all or individual units of the company.

The BIFR said in the interest of justice one more opportunity would be allowed to the promoters to give their revival proposal.

Thapar Agro Mills Limited was declared sick on September 19, 1997 and the company was directed to give its rehabilitation proposal within six weeks.

5-star hotel at Jalandhar
Tribune News Service

JALANDHAR, Jan 30 — Black Jack Tools will set up Punjab’s first 5-star hotel at Jalandhar, according to Mr Gautam Kapoor, Managing Director of the company, which has recently won a national export award. The hotel will be completed early next year.

Incorporated in 1985 with meagre means, Black Jack Tools has come a long way to export hand tools. Since 1990 the company has been winning export awards at the regional and all-India levels.

The company has also diversified into the manufacture and export of builders brass hardware and agricultural implements. The group has achieved a turnover of around Rs 40 crore and provides direct employment to over 400 people.

RESULTS
Guj Ambuja net falls

Gujarat Ambuja Cements Ltd has declared 25 per cent interim dividend for the financial year 1998-99, despite having recorded a lower net profit of Rs 46.4 crore during the six month period ended December 31, 1998, as against Rs 55.98 crore earned in the corresponding period of the previous year.

The company recorded higher sales (net of excise duty) of Rs 466.4 crore as against a turnover of Rs 441.8 crore last year.

Despite the over supply scenario and falling prices, the company earned a marginally higher operating profit for the six month period at Rs 161.17 crore (Rs 159.16 crore).

Production, during December 1998, was the highest ever at 5.67 lakh tonnes of cement having a capacity utilisation of 136 per cent.

Crisil: Crisil has reported a 19 per cent growth in its net profit for the nine month period ending December 31, 1998 at Rs 10 crore compared to Rs 8.42 crore in the previous corresponding period. The total income grew to Rs 9.64 crore from Rs 8.81 crore in the comparative three quarters of the previous year.

The net profit for the third quarter amounted to Rs 3.76 crore as against Rs 2.72 crore in the quarter ended December 31, 1997.

Century Textiles: Century Textiles and Industries Limited posted a net loss of Rs 47.26 crore on total sales and income from operations of Rs 448.87 crore during the third quarter of the current financial year. The net loss in the nine months period from April to December 1998 was Rs 85.84 crore on total sales income of Rs 1437.58 crore as compared to a total net loss of Rs 85.18 crore on total sales of Rs 1941.62 crore in the whole of the previous accounting year ended March 31, 1998.

Global tele: Global Telesystems has reported a net profit of Rs 41.06 crore for the first nine months of the current financial year, an increase of 42.6 per cent over the previous corresponding period.

Net sales for the period under review amounted to Rs 374.10 crore compared to Rs 306 crore in the same period last year. Total expenditure as a percentage of net sales was down to 77 per cent during the current period as compared to 82 per cent for the comparative period of the previous year.

GAIL: Gas Authority of India Ltd (GAIL) has recorded a net profit of Rs 249.02 crore and income from operations of Rs 1755.78 crore during the third quarter of the current fiscal. For the nine months ended December 31, 1998, the company recorded an income from operations of Rs 5020.12 crore and a net profit of Rs 638.36 crore.

GTB: Global Trust Bank (GTB) has registered a net profit of Rs 18.47 crore for the third quarter ended December, 1998, up by 58 per cent over the second quarter net profit of Rs 12.95 crore.

Essar steel: Essar Steel has reported a loss of Rs 119.81 crore in the third quarter of the current fiscal and a total loss of Rs 226.03 crore for the nine month period ended December 31, 1998. Total sales aggregated Rs 1,704.45 crore and total income amounted to Rs 1,749.74 crore.

SSIL: Computer education major SSI Limited (SSIL) registered a net profit of Rs 8.05 crore for the first half ended December 31 as against Rs 3.78 crore it posted in the same period last year. — Agencies

Marry for money? Why not?

DON’T waste your time looking for love. Go ahead and marry for money.

This is the advice dispensed at a class entitled, simply, “How to Marry the Rich,” one of the most popular adult education courses in New York city.

“Don’t feel guilty. The rich will marry somebody. Why not you?” teacher Ginie Sayles tells the standing-room-only crowd. Her students, most of them women, nod in assent and jot down notes.

The four-hour class is brimming with tips on finding a rich mate — an “RM” as the teacher puts it — and, most important, getting that “RM” down the aisle to the altar.

She suggests: Try rich heiresses, often found at charity events or art classes, rizk-taking entrepreneurs who are known to propose by the second date or rich guys who feel guilty about their money.

As in buying real estate, the three most important factors in finding an RM are location, location and location. Find a rich mate through a job, religion, a newspaper (read obituaries), a neighbourhood (move within 16 blocks of an affluent part of town) and even a parking lot (always park next to the most expensive car).

Keep at it, she says. “Date anybody who is sane and breathing,” But demand top-drawer treatment. “If someone says they love you and they don’t spend money on you, it’s a lie.”

And timing is everything. If a marriage proposal does not come in the first seven months or so of a relationship, the odds drop abysmally, Sayles says. Not only does she veto long engagements, she advocates eloping so no one can interfere.

“Let’s face it,” said a student. “If he’s rich and he’s jerk he’s easier to love than if he’s poor and he’s a jerk.”

“At least with a rich one you get compensated,” added her friend, a computer software designer in her late 20s.

The class is among the best-attended and longest-running at The Learning Annex, which sponsors adult-education classes in New York and California, spokeswoman Jennifer Keltz said.

Sayles’ husband Reed attends her class, sitting contentedly in a corner like a classroom visual aid, counting and folding the money students have shelled out. He is rich, of course, says Sayles, who describes him as a successful oil-industry executive. They met and married 14 years ago.

While he utters not a word, Sayles laughs at his wife’s jokes and seems entirely unperturbed as she describes in blunt terms how she plotted to win his hand. “He’s amused by it,” she said. “He’s the kind of gentleman who sort of feels that women have their own clever, cute entrapments”.

Sex drink

The makers of Viagra have blocked the launch in Britain of a new sex-enhancing drink called Viagrene. High Court Judge Jonathan Parker in London granted Pfizer Inc, the makers of Viagra, a temporary order against Eurofood-Link, makers of the drink said to contain natural herbal extracts and be an aphrodisiac.

In a play on the word impotent, the drink’s label declares, “The real drink for important moments” and sports a design which Pfizer said was similar to its blue, diamond-shaped pill.

Eurofood-Link’s lawyer, Adrian Speck, accused Pfizer of unacceptable delay in bringing the case to court just one week before the launch of the drink in Britain. But Judge Parker imposed a temporary ban until a full hearing can be arranged on the action.

Untruthful?

Journalists rank even below politicians as the most untruthful people in Britain, according to results of a new survey.

A huge 79 per cent of people reckon journalists cannot be trusted — only 15 per cent apparently believe the Press — while 72 per cent think politicians are untrustworthy.

The poll of just over 2,000 Britons also found that seven out of ten feel Government Ministers lie. There is one crumb of comfort, however — the figure is down from eight out of ten who thought so before Labour came to power in May, 1997.

Doctors, teachers and priests topped the truth poll, while the police were rated as truthful by 61 per cent of those polled. But there was a warning to the very people who drew the survey. Only 49 per cent of the respondents think pollsters tell the truth. — Agencies

by A.K. Sachdeva

Q: We are engaged in the business of purchase and sale of medicines and pharmaceutical preparations in Haryana on retail basis. This business was commenced in the month of April 1998 and that we have never imported any goods for sale from outside the State of Haryana so far. Our sales turnover upto March 31, 1999 is likely to be around Rs 4 lakh for which we are regularly maintaining our record. Kindly advise if we are liable to be registered under the provisions of the Haryana General Sales Tax Act, 1973? Please quote the relevant provisions of law while giving answer.

— M.L. Sud

Ans: If the business activities of the queriest are really restricted within the State of Haryana, it is absolutely erroneous to suggest for registration under the Haryana General Sales Tax Act, 1973 as the taxable quantum in relation to a trader as provided in clause (f) of section 7 is Rs 5,00,000. The business was admittedly started in April, 1998 and that the turnover by the end of the financial year 1998-99 is likely to be around Rs 4,00,000 which will be below the taxable quantum.

Therefore, no liability for registration under section 19 arises. According to sub-section (1) of section 6 of the Haryana General Sales Tax Act, 1973, a person becomes liable for payment of sales tax only when his gross turnover during the immediately preceding year exceeds the taxable quantum and so long as the sales are less than the statutory limit of Rs 5,00,000 in the State, the question of registration cannot arise.

Q: Kindly let us know regarding the procedure for summary assessment under the Haryana General Sales Tax Act, 1973. What are the conditions laid down in law for availing of this benefit by the registered dealers? It may also be advised if this facility of summary assessment can be availed of by the manufacturers also.

— Sushil Kumar Saini

Ans: Section 28-C of the Haryana General Sales Tax Act, 1973 provides for summary assessment without requiring the presence or calling for the production of the account books in relation to those dealers whose gross turnover in a year does not exceed five lakh rupees. This provision says if the sales turnover of a dealer in a year remains below rupees five lakh including the value of goods transferred or consigned outside the State and that he has shown an aggregate increase of at least 15% in tax over the tax paid by him in the year immediately preceding, the assessing authority shall not insist upon the presence or calling for the production of the account books of that dealer. However, this shall be subject to the following three conditions as laid down in rule 26A of the Haryana General Sales Tax Rules, 1975:-

(i) that the dealer has filed all the returns in time along with the declarations, bills of lading, certificates and lists of sales and purchases of goods effected during the year;

(ii) that the tax has been correctly worked out in the returns and the amounts due have been deposited into the government treasury; and

(iii) that no penalty has been imposed on such a dealer under the Act for the evasion of tax during that year and that there is no adverse material on the record for the year in respect of which assessment proceedings are pending.

by R.N. Lakhotia

Q: I am a Punjab Government employee. I have advanced house building loan from Punjab National Bank. Am I entitled to get rebate on instalments for repayments of loan. Please clarify.

— Lakhbir Singh, Kapurthala

Ans: Yes, you will get tax benefit u/s 88 of the I.T. Act, 1961.

Q: I would like to have a clarification regarding filling of Income Tax Return.

I am employed in a private concern as a Sales Officer. My job is mostly touring with no fixed headquarter. Moreover, my area of operation also changes frequently. The due Income-tax is deducted at source by my employer. My query is as to where the IT returns should be filed as I have got no fixed HQ. Can I file the return at the station where my parents reside though the said place does not fall under my official jurisdiction.

— Sandeep Singh, Ambala Cantt

Ans: If your employer has designated a particular place of posting, you should file the IT return in the Income-tax office having jurisdiction over that place. If, however, no specific place has been demarcated for your duty or no specific claim has been fixed at your HQ then you may file your Income-tax return at the Income-tax office where your parents are stationed by giving your permanent address as the address of your parents. Generally speaking, the Income-tax return could well be filed by giving your office address to the Income-tax Officer having jurisdiction based on your official address i.e. the address of your employer.

Q: My three year FDR in the bank matured in the F.Y. 97-98, but instead of encashing, I re-invested the whole amount on the FDR in the same bank for another period of 3 years. My question is whether amount of interest accrued in the first 3 years is to be accounted for in the F.Y. 97-98 or entire amount of interest for the 6 years will be accounted for in the F.Y. in which the FDR finally matures.

— S.K. Sharma, Pathankot

Ans: In respect of interest on fixed deposits which has matured but you have reinvested in another fixed deposit (the principal amount as also the interest amount) even then for the purposes of your Income-tax return for the Assessment Year 1998-99 you must show the income arising to you in respect of the matured FDR for all the years. As you have not shown the income in respect of accrued interest on the fixed deposits year after year, you should now show the total interest received by you during the Assessment Year 1998-99. In future it is suggested to you that from the point of view of tax planning please obtain a certificate from bank every year about the accrued interest during the year and declare such interest income in your tax returns and thereby claim tax deduction also within the framework of section 80L of the Income-tax Act, 1961.

by Praful. R. Desai
Is it a precedent?

Q: Can the High Court take any other view other than expressed in clear terms by the Supreme Court?

A: This issue came up before the S.C. in C.N. Rudramurthy v K. Baikathulla Khan (1998(L) R.C.J. 481).

In D. C. Bhatia’s case (1995(I) SCC 104) the S.C. was concerned with a provision under the Delhi Rent Control Act and S.3(C) made it clear that the Act was not applicable to any premises whether residential or non-residential whose monthly rent exceeds Rs 3000 which is akin to the provision U/s. 31 of the Karnataka Rent Control Act.

In Shobha Surender’s case the H.C. had proceeded to rely upon Padmanabha Rao’s case when the matter was brought to the S.C. though no specific reference was made to Radmanabha Rao’s case, the S.C. stated that the law laid down in D.C. Bhatia’s case would be applicable, it was not open to the H.C. to state that it would prefer to follow the decision in Rattan Arya’s case.

Indeed it is a matter of judicial discipline that requires that when S.C. states as to what the law on the matter is, the same shall be binding on all the Courts within the territory of India. This mandate of Art. 141 of the Constitution is not based on any doctrine of precedents, but is an imprimatur to all courts that the law declared by the S.C. is binding on them. If that is so, it was not open to the H.C. to consider the effect of the decisions in Rattan Arya’s case, its scope, what was decided therein and whether there could be any distinction between that decision and the decision rendered in D.C. Bhatia’s case.

The clear pronouncement made by the S.C. in Shobha Surendar’s case was that D.C. Bhatia’s case was applicable with reference to S.31 of the Karnataka Rent Control Act and therefore, in view of that decision, the H.C.’s decision was upset in another matter where the H.C. had followed the Padmanabha Rao’s case. In effects Padmanabha Rao’s case stood impliedly overruled.

Thus, it was not at all open to the H.C. to have tried to explain the decision of the S.C. and ought to have implicitly followed the decision of the S.C. The law declared by the S.C. is clear that the D.C. Bhatia’s case was applicable to the previsions of Karnataka Rent Control Act. So, in the opinion of the S.C., it was not open to the learned Judge to take any other view in the matter. Thus, the S.C. took the view that the direction issued by the H.C. to the parties to work out their remedies under the Rent Control Act is not at all correct.

With the result, the S.C. held that the decree passed by the Trial Court is restored and the order made by the H.C. is set aside. In that way the appeal stands allowed.

Safety workshop
CHANDIGARH, Jan 30 (TNS) — A two-day workshop on occupational safety and health organised by the North Zone Chapter of National Safety Council concluded here today. While Mr Ashok Huria of HMT stressed on accident prevention, Dr Dhiraj Gupta and Dr Arun Kumar of the PGI and Dr A.J. Kanwar and Dr Arjan Das of Government Medical College spoke on occupational diseases. The workshop was inaugurated by Mr D.S. Bains. Mr S.S. Channy, M.D., Punjab Health Systems Corporation, called for integration of safety and health.

J.K. Tyres
NEW DELHI, Jan 30 (PTI) — J.K. tyre, a group company of the J.K. Industries Ltd, has become the country’s first tyre manufacturer to receive QS 9000 certificate for its multi-location operations.