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| Sunday, October 29, 2000, Chandigarh, India   
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No scrutiny of tax returns from this fiscal year Higher tax ruled out Globalisation fraught with dangers:
Sinha Hackers break into Microsoft, FBI investigation begins Suratgarh project to
have 3 more units |
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Service through shopping
stops Mercedes S-class
gets good response Forex
reserves fall
Withholding pension
Award better compensation to victims of negligence
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No scrutiny of tax returns from this fiscal year CHENNAI,
Oct 28 (PTI) — Scrutiny of income tax returns filed by tax payers has been done away with completely from the current financial year onwards with a view to encourage tax payers, A Balasubramaniam, Chairman Central Board of Direct Taxes (CBDT) said today. Addressing an interactive session organised by the Madras Chamber of Commerce here, he said the Income Tax Department had been progressively doing away with the same for the last three years considering the increasing level of compliance on the part of tax payers filing returns. He said there would not be any more random selection or selection on the basis of any previously recorded evidence of underreporting of income for scrutiny from this fiscal. However, The Chief Income Tax
Commissioner reserved the right to order scrutiny in cases where under-reporting was quite blatant, he added. The level of compliance had gone up considerably during the last three years as also the approach of the
IT officials, he said. However, tax payers’ compliance and the cooperation from the
IT officials were yet to reach world standards. “Both the things had to grow simultaneously in order to reach that level and it would take another four or five years,” he said. Mr Balasubramaniam said almost 98 per cent of
PAN cards had been distributed so far and added that with computerisation programme already on it was hoped that shortly the
PAN cards would be available online. He said instructions had already been issued to accept
PAN card applications from now on without considering whether it had been applied for earlier and issue
PAN cards within weeks. Referring to the various structural reforms being undertaken by the department, he said processing of returns of salaried class through computer would be complete by March next in all the metros and selected towns and computerised processing of fresh returns would commence from April 2001. Filing of returns online was also on the anvil, he said. Computerised processing of returns filed by trade and business was the next on the agenda which he said would come into effect by 2002. He said 30 centres had already been interlinked and in turn these centres were also linked to the three metros of Chennai, Mumbai and Delhi. Mr Balasubramaniam said the
IT Department was committed to ensure better service to tax payers, reduce grievances and take the country’s income tax services to world standards in the next few years. He said this would be achieved through chalking out specific road maps that would also ensure stability and simplification of procedure and
progressive reduction of distortions. Responding to various issues raised at the session, he said that the tax rates had already been considerably reduced in the last three to four years with a view to broaden the
tax base. “We will follow the same in the coming fiscals also,” he said. However, he ruled out the possibility of further bringing down the corporate tax, adding that this was difficult mainly due to the various kinds of exemptions and concessions being allowed to business and trade. Referring to the challenges posed by the advent of e-commerce, he said that in the case of e-commerce transactions between Indian nationals, one positive aspect was the transparency it would bring which he said would certainly help in eliminating the black economy. However, bringing the foreign nationals using e-commerce in India into the country’s tax net posed difficulties as they would find the Indian tax structure quite alien and unaccommodative. He said the Board of Direct Taxes had already started discussing the issue with them. |
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Higher tax ruled out CHENNAI, Oct 28 (PTI) — The government today ruled out different and higher Income-Tax rates for lucratively paid software professionals as mooted by renowned economist Raja Chelliah. Central Board of Direct Taxes Chairman A Balasubramaniam replied in the negative responding to a suggestion in this regard at a Madras Chamber of Commerce function saying the country has only one tax structure for the whole salaried class. Chelliah, who had gone into the entire gamut of reforming the Indian Tax system, had suggested that the government consider taxing highly paid software professionals differently since Income Tax was a leveller of the growing disparities in India. |
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Globalisation fraught with dangers: Sinha ROCHESTER (United States), Oct 28 (PTI) — India today warned against dangers of globalisation and said aberrations in it are needed to be removed to “humanise” it for better acceptance in developing countries. World community should make concerted efforts for “humanisation” of globalisation process, Indian Finance Minister Yashwant Sinha said, adding it would become acceptable only if people are convinced that integration of international trade would lead to an all-round improvement in quality of lives of poor and the needy in developing countries. “The repeated protests against globalisation reflects a perception that the entire process of economic integration, particularly, the international trade regime, was exploitative in character,” he said speaking on globalisation at the Rochester Institute of Technology. “It is in this context of such economic and social distortions that the issue of equity and the concern for the poor comes to assume a central role,” he said pleading for liberal overseas assistance for infrastructure and social projects in the developing countries. Expressing concern over the declining trend in overseas development assistance, particularly for infrastructure and social projects in poor countries, Sinha said there should be more liberal dispensation for the needy countries. He also suggested that financial stability was needed to be recognised as public good and said international community should make concerted efforts towards humanisation of the globalisation process. Stating that the fundamental objective of globalisation was not only growth but growth for eradication of poverty, Sinha said there was an urgent need for recognition of human dimension of globalisation. It was therefore necessary to make globalisation acceptable to people by convincing them that efforts to integrate international trade would lead to an all-round improvement in the quality of life of the poor and needy in developing countries. Referring to the tenth human development report, Sinha pointed out that inequalities among countries has increased during the late 90s as the fifth of the world’s people living in the highest-income countries had 86 per cent of the world’s highest while the bottom fifth accounted for just one per cent. Similarly, he said, as many as 1.2 billion people lived on income of less than one dollar a day and nearly half of the them lived in South Asia. |
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Hackers break into Microsoft, FBI investigation begins SEATTLE,
Oct 28 (AP) — The FBI has opened an investigation into a break-in by hackers who penetrated Microsoft’s computer system and got a look at a closely guarded and ultravaluable software blueprint. Microsoft called it an “act of industrial espionage,” but said that the hackers gained access to only one source code for software under development, not for its most popular products, such as Windows me, Windows 2000 and Office. “That is very good news,” spokesman Mark Murray said yesterday. Source codes are blueprints for computer programmes, and Microsoft’s codes are the most coveted in the multibillion-dollar industry. With access to the codes, competitors could write programmes that challenge Microsoft’s products. Hackers also could use the codes to identify software flaws, making break-ins and virus-writing easier. Microsoft said it contacted the
FBI late on Thursday. Spokesman Steve Berry confirmed the bureau is investigating but refused to discuss details. No motive for the break-in has been disclosed, but hackers in the past have tried to extort money from companies after stealing information from their computers and threatening to publish it on the internet. Other hackers have cracked complex computer systems just for the notoriety or the thrill. Investors did not seem too concerned. Microsoft stock rose to $ 3.25, or 5 per cent, to $ 67.69 on the Nasdaq Stock Market. The break-in adds to the woes of a company now appealing federal judge’s ruling ordering that it be broken up for engaging in predatory business practices. The hackers, whose intrusion discovered by Microsoft security personnel on Wednesday, got a look at a code for a product being designed for release years from now and did not modify it, company spokesman Rick Miller said. He declined to identify the product. Experts said consumers and businesses should be relieved: Hackers will not be able to analyse and break into Microsoft programmes currently on their computer systems, said Simon Perry, Vice President of Security Solutions at Computer Associates in Islandia, New York. |
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Suratgarh project to
have 3 more units JODHPUR, Oct 28 (PTI) — Three more units of 250 mw each will be set up at the Suratgarh thermal power project to increase the availability of electricity in Rajasthan, according to Chief Minister Ashok Gehlot. A unit will be commissioned each year from next year, Mr Gehlot told reporters here yesterday. Advance work on installing the third and fourth unit had already commenced, while the proposal to set up the fifth unit had been cleared, Mr Gehlot said. The first two units of the power station were currently generating 500 mw of electricity, he added. The state government would have to spend an additional Rs 180 crore for ensuring eight hours of uninterrupted power supply daily to farmers in the rabi season by purchasing electricity from sources outside the state, he said. He said hydel power generation had been affected due to lower water level in the Bhakhra and Mahi projects as also in the Chabal complex following inadequate monsoon rain. Mr Gehlot said Rajasthan should get the entire power generated by the third and fourth units of the Rajasthan Atomic Power Station near Kota as it had been getting from the first two units. The Centre had decided to allocate only 20 per cent of the power generated by new units to the state, he said. He also opposed the deduction of 112 mw of power to Rajasthan from the
NTPC-owned Anta gas-based power plant near Kota. |
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Service through shopping
stops THE traditional consumerism is through ancient and fragmented family retail shops and in India there are an estimated 6 million such centres providing employment to about 15 million persons. These centres employ highly exploited helpers and salesmen with no scope of career improvement resulting in operational inefficiencies, high costs, poor and terrifying service to consumer who is always on the receiving end. There are occasional deaths reported in the media due to the consumption of spurious items sold through such outlets. The modern concept is organised retailing which provides interactivity with outside world. The idea was introduced long ago in the government sector through ‘Super Bazars’ in Metropolitan cities. However, most of these
ventures are not successful being loss making. There is a bogey in the mindest of people about the dangers of such organised retail shopping malls in the private sector specially via 100 per cent FDI route. The unfounded fear is that large retailers in the organised sector will force small kirana and other retailers to wind up as if small cannot exist with large or medium. The development of the service is the need of hour whether online or off-line. This sector can provide highest employment with career advancement opportunities as compared to any other industrial sector, particularly for lower class, unemployed or underemployed youth of India who are not-so-well educated. The establishment of “out of town malls” and “retail
shoppers stops” in suburbs in the development of peripheral area of Metros. The ultimate beneficiary of organised retailing shall be the consumer who is today’s ‘King’ of the supply and distribution chains. Such service providers are able to offer more quality, value, variety and comfort to the consumer and peg the price fluctuations due to their operational efficiency round the globe. India automatically stands to gain from such ventures since global trade will be a two-way street for our billion-sized market. |
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Mercedes S-class
gets good response CHANDIGARH, Oct 28 — They might call it a comfort, but it surely is more a matter of style and status. The owners of this ‘gaddi’ which costs more than Rs 60 lakh definitely want to be a class apart. And, if we say Punjabis and residents of the city beautiful are the most stylish ones with that inner desire to be different, it won’t be a mis statement. More than 30 confirmed orders and sale of eight S-class models of Mercedes (which costs nearly Rs 64 lakh) within almost a month are a proof to it. For the residents of the state and UT with the highest per capita income, small cars are quite affordable, and now they want something that gives them “I am the best” feeling. “Demand is constantly increasing and the response that we have received for the S-class model is simply tremendous”, says Manjit Singh Bala, Managing Director, Tai-Pan Traders, dealers for Mercedes Benz in the region. And the region is witnessing a spurt in the demand for this car which is the costliest here. Reportedly, while the target for the year (which has to be attained by March next year) for other Mercedes models (costing around Rs 30 lakh) is 80, as many as 60 cars have already been sold in the region within eight months. For the pre-owned cars, which are available between nearly Rs 12 to 15 lakh, the demand is equally high. Of the entire region, the maximum demand comes from Chandigarh, Ludhiana and Jalandhar, which are considered to be the hub of the richie riches. “For residents of these areas, which are also home to maximum number of NRIs, car is also an expression of themselves, for which they would not like to compromise”, says Mr Bala. Dealers opine that for the small car owner, a shift to ‘Merc’ mostly means getting a pre-owned car and later on shifting for a new one. “Most of those who have opted for S-class are those who already owned Mercedes earlier. Owners for this model, mostly big industrialists, are those who want something new”, Mr Bala says. For people in the region, it is not merely the model of the car which will satisfy them. The accessories too have to be the best. “They do not mind spending additional Rs 3-4 lakhs for options, that is, metallic colours, leather seats etc”, said the dealers. Well, money really does not matter, for them whatever they do has to be in style. And that is the bottomline. |
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Forex reserves fall MUMBAI, Oct 28 (PTI) — India’s foreign exchange (forex) reserves have further fallen by $ 181 million to $ 34,861 million in the week ended October 20, 2000 over the previous week. The fall in reserves was solely on account of the foreign currency assets getting eroded by $ 187 million to $ 32,019 million, according to the RBI’s latest weekly statistical supplement. Gold reserves, however, remained static at $ 2,834 million while the special drawing rights increased by $ 6 million to $ 8 million in the reporting week. The country’s forex reserves have fallen for the third week in a row, with the reserves in the previous week ended October 13 declining by $ 298 million to $ 35,042 million. |
By Praful R. Desai Withholding pension Q: Is withholding of pension under Rule 9-valid? Ans:
In Union of India v G. Ganayuthan (dead) by L.R.’s (2000-II-LLJ. 648). The SC was dealing with the point. The respondent died pending appeal. His L.R.’s were brought on record. The respondent had to lose half of his pension and gratuity about 6 years after his retirement, on charges of misconduct resulting in loss of revenue to the government. He therefore challenged the punishment. The Central Administrative Tribunal gave a verdict in favour of the respondent on two grounds. Firstly, that the withdrawal of gratuity even to the extent of 50 per cent was not valid as per Rule 9 of the Pension Rules. Secondly, that the punishment awarded was too severe and was therefore restricted to 10 years instead of permanently. The SC on appeal, set aside the Tribunal’s order. Disposing of the first ground of Tribunal, the SC observed that the Tribunal was wrong in thinking that U/Rule 9 any part of gratuity could not be withheld. The term ‘Pension’ in that Rule must be constaned to include gratuity. The construction was none the less valid, after the third Amendment of Pension Rules in 1991. On the second aspect, the SC elaborately discussed principles of administrative law concerning judicial review, powers of the H.C. and Tribunal, in particular the power to interfere with the quantum of punishment. The SC held that the Tribunal’s order interfering with the quantum of punishment had to be set aside as there was no contention here to fundamental freedom being affected nor of procedural impropriety or irrationality. Hence SC set aside the order of the Tribunal. |
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by Pushpa Girimaji Award better compensation to victims of negligence CONSUMER courts have repeatedly held that inordinate delay in providing a service constitutes deficiency. Going by that yardstick, even consumer courts have to plead guilty. It’s a different matter though that resolution of disputes by consumer courts does not fall within the definition of ‘service’ provided under the Consumer Protection Act. But then complainants are not the only ones agitated over the delay in settlement of disputes taken before these courts. Even the Supreme Court (Charan Singh vs Healing Touch Hospital, September 20, 2000) has come down heavily on the consumer courts for overlooking the spirit of the benevolent legislation. The legislative intent of enacting a law providing for speedy summary trial to settle consumer disputes has been respected in its breach, the apex court said, in a scathing attack on the functioning of these courts. Saying that the very object of the Consumer Protection Act would be defeated if summary trials are not disposed of expeditiously, the Supreme Court said steps were required to be taken in this direction in right earnest. There was reason enough for the apex court’s strong criticism of the administration of consumer justice. Without going into the merits of the case, the National Consumer Disputes Redressal Commission had dismissed Mr Charan Singh’s complaint, saying that the compensation claimed by him was highly unrealistic, exaggerated and excessive. He was at liberty to move the State Commission or the District Forum with a more realistic claim, the Commission had said, in its order of August 9, 1999. Mr Singh had filed his case before the Commission in 1993. Mr Singh’s allegation was that following the administration of spinal anaethesia during an operation to remove stones in his urethra, the entire right side of his body had been paralysed. Besides, he had also found that the hospital had illegally removed one of his kidneys. Saying that he had become disabled, lost his job and therefore his earnings and had also incurred heavy expenditure on his medical treatment, he had sought a compensation of Rs 34 lakh. The National Commission, in a brief order, held that the claim of Rs 34 lakh was excessive, even if one were to accept his contention that the permanent disability caused to him was the result of the alleged negligence of the hospital and that he earned a salary of Rs 3000 per month plus allowances before he lost his job...“We are of the view that the exaggerated claim has been made only for the purpose of invoking the jurisdiction of this commission,” the National Commission said. (While defining the pecuniary jurisdiction of the consumer courts, the CP Act says that the National Commission can entertain only those original petitions where the claim is above Rs 20 lakh). The Supreme Court, before which Mr Singh filed an appeal against this decision, said the National Commission was not fair in disposing of the complaint thus. Whether the claim was realistic or exaggerated or excessive could only have been determined after the appellant had been given an opportunity to prove the case and establish his claim, the Supreme Court said. The Commission should have taken the complaint to its logical conclusion by asking the parties to
adduce evidence and rendered its findings on merits. A mathematical calculation based only on the amount of salary being drawn by the appellant could not be the sole factor to be taken into consideration to style the claim as exaggerated, the Supreme Court said saying that the appellant had been virtually condemned unheard after waiting for six long years, the Court also pointed out that the National Commission had jurisdiction to award proper compensation, even less than the one claimed in a given case. This judgement is important from another point of view too. Here, the Supreme Court lays down certain ground rules for determining compensation. Said the Supreme Court: While quantifying damages, consumer forums are required to make an attempt to serve the ends of justice so that compensation is awarded not only to recompense an individual, but also to bring about a qualitative change in the attitude of the service provider. “Indeed, calculation of damages depends on the facts and circumstances of each case. No hard and fast rule can be laid down for universal application,” the court said. It also pointed out that is was not merely the alleged harm or mental pain, agony or physical discomfort, loss of salary and emoluments, etc, suffered by the appellant which was in issue, it was also the quality of conduct committed by the respondents upon which attention was required to be found in a case of proven negligence. In other words, while calculating compensation, the courts have to take into consideration not only the loss or injury suffered by the consumer, but also the overall conduct of the opposite party. Judgements such as this should help consumer courts award better compensation to victims of negligence. |
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Zee Telefilm Bharti Ent Arvind Fashions Hind Lever |
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PNB Housing Fin net up 143 pc. NEW DELHI, Oct 28 (PTI) — Punjab National Bank’s subsidiary
PNB Housing Finance today reported a 143 per cent jump in net profit at Rs 5.18 crore in the first half of this fiscal as against Rs 2.13 crore last year. The finance company’s profit before tax was up by 141 per cent at Rs 6.71 crore while total income increased by 31 per cent to Rs 24.47 crore during the first half ended September 2000, as compared to Rs 18.72 crore last year. Creative Eye to relaunch IPO NEW DELHI, Oct 28 (UNI) — Dheeraj Kumar-promoted television production company Creative Eye is relaunching the book-building portion of its initial public offering (IPO) on November 3. The IPO of 5,004,800 equity shares of face value of Rs 5 each consists of a book-building portion of 4,504,200 shares (90 per cent) and a fixed portion of 500,500 shares (10 per cent). The shares are proposed to be listed on the Bombay Stock Exchange and National Stock Exchange, a statement issued here said today. HEC suffers Rs 15 cr loss RANCHI, Oct 28 (UNI) — The ailing Heavy Engineering Corporation has been incurring a whopping loss of about Rs 1 crore on an average everyday following disruption of power supply since October 13. The company, recently cleared by BIFR with a rehabilitation package, was yet to recover as it faced sudden disruption of power, which brought in a loss of Rs 15 crore in the last fortnight. IndusInd Bank net grows 25.57 pc NEW DELHI, Oct 28 (UNI) — IndusInd Bank has registered a 25.57 per cent increase in the net profit at Rs 46.11 crore for the half year ended September 30, as compared to Rs 36.72 crore in the corresponding period last year. Operating profit has increased by 15.65 per cent at Rs 90.29 crore as against Rs 78.07 crore in the corresponding period of the previous year, an official release said here. |
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IT award ISO 9002 Best hotel |
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