The Tribune, Chandigarh, India

	Ambanis’ gas row: SC hearing tomorrow New Delhi, October 18 Two of the top corporate houses, headed by estranged industrialist brothers Mukesh and Anil Ambani, are set for a showdown in the Supreme Court, which will on Tuesday commence hearing on their gas supply dispute. The fight relates to supply of gas to Anil Ambani group's Reliance Natural Resources Ltd (RNRL) from D6 block in Krishna-Godavari eastern offshore fields of elder sibling Mukesh-led Reliance Industries (RIL). Days before the beginning of hearing in Supreme Court, Anil Ambani also made a surprise truce offer to resolve the dispute cordially, but Mukesh Ambani questioned its sincerity without rejecting the proposal. In a public statement on October 11, Anil said all disagreements could be resolved within weeks, but RIL questioned the sincerity of the offer made "through the public domain" and said Anil could have easily contacted his elder brother directly. RIL also asked Anil to demonstrate the bona fide of his intentions behind the latest overture, adding it "welcomes this positive indicator and will not be found wanting in responding to them constructively." While RNRL is seeking supply of natural gas at a previously agreed price of $2.34 per mmBtu, RIL contends that it cannot do so as the government approved the rate for the gas at $4.2 per mmBtu and it would not make profit at a price committed in 2005. RNRL is seeking a minimum 28 million standard cubic meters per day, or more than one-third of the peak output from RIL's KG-D6 fields, for a period of 17 years. The two parties approached the Supreme Court following a Bombay High Court ruling on June 15, where RIL was asked to honour its commitment in the 2005 family settlement agreement for supply of gas to RNRL and both parties were directed to finalise a pact within a month. Besides their initial cross-appeals, both parties have filed a number of affidavits and submitted various documents related to their case with the Supreme Court, which would begin hearing on October 20 on these as also the admissibility of a petition filed by the central government. The government has sought to become party to the dispute and has contended that national resources cannot be appropriated through private family arrangements and it alone holds the right to approve rates and decide on customers keeping national priorities in mind. Last week, the Petroleum Ministry also sought to expand the legal team that would argue the government's stand on the Ambani gas dispute before the apex court. Among the various affidavits filed with the Supreme Court in this case, directors of RIL have separately contended that the company's board had not approved the family MoU, which divided gas between companies run by the two brothers. — PTI
	Norms for SME exchanges soon New Delhi, October 18 Market regulator SEBI would come up with guidelines for setting up stock exchanges exclusively for small and medium firms soon. "SEBI is working on it. The norms are being finalised and would be released soon," Finance Ministry sources said. The market regulator has already floated the concept for setting up the exchange which will enable SMEs to raise capital from the primary market. The exchange will help small enterprises that could not fulfil the trading requirements of the BSE and the NSE, raise capital, sources said. Micro, Small and Medium Enterprises (MSME) Secretary Dinesh Rai had earlier said there could be more than one exchange for the SMEs. The BSE, NSE and the new entrant MCX Stock Exchange (MCX-SX) have shown interest in setting up a SME exchange. There are over 2.91 crore units in MSME that accounts for 40 per cent of the industrial output of the country. — PTI
	Market Outlook ‘Cautious optimism to prevail’ Mumbai, October 18 As Samvat 2066 has begun, optimism is spread across the stock market with investors praying for an action replay of last year's record surge in equities but analysts are advising caution in preparing the portfolios. After plunging to a three-year low during Diwali last year, the benchmark Sensitive index has surged 103 per cent. The total wealth of the investors in the over 4,000 listed companies soared by over Rs 30 lakh crore since last Diwali to over Rs 58 lakh crore. "There is a positive outlook on the Indian economy as well for the stock market this year. Overall bullish sentiment will prevail in the market but corrections can come from time to time," Bonanza Portfolio assistant vice-president Avinash Gupta said. Indian stock bourses ended moderately higher in the first trading session of the new Samvat year 2066 as investors preferred to book profits to start their accounts with gains. The sensitive index climbed 4.1 per cent during the week. Reversing the trend after a fall of over 10,000 points during Samvat 2064, the Sensex recorded a gain of 8,813.26 points, or 103.57 per cent, in the Samvat 2065. At the end of the truncated trading yesterday at 7:15 pm, the BSE Sensex closed up 3.19 points at 17,326.01. — PTI
	Panel to expedite Satyam investigation New Delhi, October 18 The government has formed a committee with representations from market regulator SEBI, CBI and Enforcement Directorate to expedite investigation in the over Rs 10,000-crore accounting scam in IT firm Satyam Computer. The Coordination Committee will be headed by Additional Secretary in the Ministry of Corporate Affairs, official sources said. "We want to finish the investigation (of the Satyam case) by the end of this year. Hence, the Coordination Committee," an official told PTI. Multi-disciplinary agencies have been asked to designate officers of the level of Joint Secretary to be part of the Coordination Committee. It is almost a year since Satyam Computer Services' (now Mahindra Satyam) founder B Ramalinga Raju confessed to having cooked the company's books by inflating profits. The Serious Fraud Investigation Office (SFIO), which was to submit its report on the money-siphoning angle on October 13, is yet to file a chargesheet. The CBI, another agency investigating the scam, is also expected to file its second chargesheet soon. SEBI, however, said it would complete investigation and take action against the Satyam accused latest by next year. — PTI
	99 US banks collapse in '09 so far New York, October 18 Inching towards the century-mark, a staggering 99 US banks have gone belly up so far this year, indicating that the banking sector continues to be shaky. This year's toll is about four-fold that of 25 failures in 2008, with an average of nearly 10 banks collapsing every month. The Federal Deposit Insurance Corporation (FDIC), which insures deposits of more than 8,000 financial institutions, recently said 416 entities are at risk of failing. On Friday, the authorities shut down San Joaquin Bank, making it the fourth bank failure this month. The failure would cost FDIC's Deposit Insurance Fund $103 million. As on September 29, San Joaquin Bank had assets worth $775 million and deposits of $631 million. — PTI
	Tax Advice FDs made u/s 80C can’t be withdrawn prematurely by S.C. Vasudeva Q. Please clarify the following points: 1. Can the fixed deposit in a bank under Section 80C be withdrawn before due date? 2. One of my relatives has taken premature retirement from the bank and got an amount of Rs 10 lakh at the time of such retirement. Please advise whether any rebate is allowed on this amount and under which section. — RK Nagar A. The fixed deposits made in a bank in accordance with the requirements of Section 80C of the Income-tax Act 1961 (the Act) cannot be prematurely withdrawn. This is in accordance with the clause 11(2) of the Bank Term Deposit Scheme 2006, which provides that no term deposit shall be encashed before the expiry of five years from the date of its receipt. 1. There is no section in the Act which provides for any relief or rebate for the ex gratia amount received by an employee on premature retirement. The only exemption provided by Section 10C of the Act is in respect of amount received on the voluntary retirement or termination of the services of an employee in accordance with any scheme or scheme of voluntary retirement or in the case of public sector company, scheme of voluntary separation to the extent such amount does not exceed Rs 5 lakh. If your relative is covered within the aforesaid scheme an amount to the extent of Rs 5 lakh would be exempt from tax. LTC exempted Q. I retired from PSEB on 28.02.2006. I got my leave travel concession amounting to Rs 5,070 in 8/2008. I, along with my family, actually performed the journey by rail in 12/2008 by spending Rs 6,970 (proof of journey available). Please let me know if the amount of Rs 5,070 so received by me will be added to my gross income for the purpose of paying income tax? — Shashi Kant Kapil A. The value of the travel concession received by an individual from his employer for himself and his family in connection with his proceedings on leave to any place in India is exempt to the extent of amount actually incurred on the performance of such travel. The exemption is, however, subject to the following conditions: (i) where the journey is performed on or after the 1st day of October, 1997, by air, an amount not exceeding the air economy fare of the national carrier by the shortest route to the place of destination; (ii) where places of origin of journey and destination are connected by rail and the journey is performed on or after the 1st day of October, 1997, by any mode of transport other than by air, an amount not exceeding the air-conditioned first class rail fare by the shortest route to the place of destination; and (iii) where the places of origin of journey and destination or part thereof are not connected by rail and the journey is performed on or after the 1st day of October, 1997, between such places, the amount eligible for exemption shall be: (A) where a recognised public transport system exists, an amount not exceeding the 1st class or deluxe class fare, as the case may be, on such transport by the shortest route to the place of destination; and (B) where no recognized public transport system exists, an amount equivalent to the air-conditioned first class rail fare, for the distance of the journey by the shortest route, as if the journey had been performed by rail. The exemption referred to above is available to an individual in respect of two journeys performed in a block of four calendar years commencing from the calendar year 1986: In case you comply with the above conditions the amount of Rs 5,070 received by you towards the leave travel concession would be exempt from tax and would not be added to your salary income. Maturity of KVPs Q. It is learnt that because of some change in the policy/rules Kissan Vikas Patras are becoming matured earlier than what was told at the time of purchase. But no definite and reliable information is available. Kindly advise as to what will be the date of maturity of the KVP’s purchased on: 09.09.2002, 05.10.2002, 05.11.2002, 01.05.2003, 08.06.2004. — RS Bhatia A. There is no information with regard to the earlier redemption of Kisan Vikas Patras. The original maturity period as per my information is 8 years and 7 months. The maturity period of Kisan Vikas Patras referred to in your query would therefore be based on period referred to herein above. Notice pay Q. I have resigned from my present job from a private company. According to the terms and conditions of service, I am required to pay a sum of Rs 40,000 approx. in lieu of requisite notice pay recovery. Kindly advise if I am entitled to claim this deduction from my salary income in my relevant IT return and if not under what provision of the IT Law? Further, my new employer, whom I will join soon, has undertaken to reimburse aforesaid amount on a/c of shortfall in notice period. Would this reimbursement form part of my salary income? Or, can the said amount be treated as deductible from my salary from new employer? — Asha Sharma A. The amount payable by you as notice pay recovery is not deductible against your salary income under any of the provisions of the Act. 1. The amount paid by a new employer towards the reimbursement of Rs 40,000 approx. on account of shortfall in notice period would be a perquisite and taxable as part of your salary income. The said amount is not allowable as deduction from the salary received from your new employer. Proceeds of pension scheme taxable Q. Is monthly pension being received from ‘Jeevan Suraksha Scheme’ of LIC taxable under Section 10(23AAB). — NK Rawat A. Monthly payments received from Life Insurance Corporation under ‘Jeevan Suraksha Scheme’ will be taxable. Such payments are not exempt from tax under Section 10(23AAB) of the Act. The said section deals with the income of a fund which has been set up by the Life Insurance Corporation or any other insurer under a pension scheme to which contribution is made by any person for the purposes of receiving pension from such fund and which is approved by the Insurance Regulatory and Development Authority. PPF a/c of a minor Q. I have a daughter aged 2 years. She receives cash gifts (shagun) on various occasions like on her birthday, religious ceremonies, visits to our relatives. Though individually small in amount, the collective sum becomes considerable per annum. I want to ask: 1. What are its tax implications? Whether the amount has to be reflected in parent’s income or not? If not, where it has to be shown in tax return? 2. Can a PPF account be opened in her name and this amount be deposited in that. 3. If we invest the amount in bank FD/KVP what will be the tax implications. — K Kishore A. The cash gifts received by your daughter are not includible in your income. However, if these are invested anywhere, the income arising on such investment would be includible in your income. In case the amount has been deposited in her bank account the interest earned on such deposit will be includible in your income. 1. The Public Provident Fund Scheme provides for opening of an account by an individual on his behalf or on behalf of a minor of whom he is the guardian. You can deposit this amount in her PPF Account if such an account has been opened by you on her behalf. 2. As indicated herein above, the income arising on the fixed deposit or from Kisan Vikas Patras would be includible in your income in view of the provisions of Section 64(1A) of the Act.
	Aviation Notes Srinagar airport not equipped to handle A-330 by K.R. Wadhwaney After discontinuing operations to Paris and Tokyo, Air India has decided to start flying from Srinagar to Jeddah and back to meet the ever-increasing demand of Hajis. The date of start, scheduling of flights, quantum of fare and also special facilities, including increased hand baggage, have not been made public. The analysts are considerably wary of starting operations from Srinagar airport which, according to them, is not sufficiently equipped for handling the A-330 aircraft. They apprehend the success of the operation, despite Hajis outcry. The runway is the most vital single factor which determines the success or the failure of the operations. According to technicians and engineers, the base of the runway is not sturdy enough to bear the weight of the A-330 which can carry about 350 passengers. According to the laid-down procedures, a heavy object is thrown from the considerable height to determine the strength and sturdiness of the runway. The Srinagar runway is good enough for medium-sized aircraft to land and take-off but certainly not the huge aircraft like A-330. According to commanders who have been operating flights between Srinagar and Delhi, the Instruments Landing System (ILS) at the airport has not been as consistent as it ought to be in weather conditions. The Air India's flight safety unit has already written to the operation department to examine the runway's sturdiness and other parameters before initiating operations from the Srinagar airport. Issue politicised The two Air India pilots, Ranbir Arora and Aditya Chopra, accused of 'misbehaving with a hostess, Komal, on the Sharjah-Delhi flight on October 3, were arrested by the Delhi police and also granted bail as charges were 'bailable'. The case is also being probed by all-women commission body. In the midst of this all, Komal has politicised the issue. "I want justice", says Komal. Some politicians are said to have written a letter to Prime Minister Manmohan Singh. The time has come when the commanders and captains, no matter how senior, learn to treat cabin crew politely and kindly instead of showing them scant respect. Their role on flights is as precious as that of commanders. All passengers on the American Airline's flight on the Hudson river in New York recently would not have survived without the superlative functioning and presence of minds of the hostesses.