Newsletter dated 04th august, 2016

1. www.csrajivbajaj.com
THOUGHT OF THE DAY
THOUGHT OF THE DAY
"Originality will always catch the attention of a good critic
whether you're striving for success or living proof of success. Be
yourself! Stay Original!"
Law Updates:
 If Indian courier-agency hires foreign courier-agencies to complete
delivery outside India of foreign-bound packages, then, since role of
foreign agencies commences and ends beyond border of India,
hence, services of foreign agencies cannot be treated as
wholly/partly performed in India and cannot, therefore, be taxed in
India under reverse charge under section 66A.
 Receipt of huge share premium doesn't mean that it is unexplained
cash credit; reassessment sets aside.
 No denial of sec. 11 relief to education institute just because its
course fee is 10% of total receipts: Tribunal Delhi.
 Income from providing personnel for drilling operations for mineral
oil is taxable under sec. 44BB and not sec. 44DA: Tribunal Delhi.
 Receipt of huge share premium doesn't mean that it is unexplained
cash credit; reassessment sets aside.
 Order passed by DG allowing confidentiality of documents couldn't
be subject matter of appeal: CCI
PROFESSIONALS INPUTS:
 The Constitutional Amendment Bill for GST passed in Rajya Sabha
unanimously, paves way for implementation for GST with effect
from 01th April, 2017.
MARKET WATCH:
SENSEX: 27,.697.51 -284.20 NIFTY: 8,544.85 -78.05
SILVER: 47,811. 00 -22.00 GOLD (MCX): 31,383.00 100.00
USD/INR: 66.85 0.14 CRUDE OIL: 2,638.00 -36.00
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Date: 04th
August, 2016

2. www.csrajivbajaj.com
KASTURBHAI LALBHAI
Founder – Arvind Mills
Kasturbhai Lalbhai (19 December 1894 – 20 January 1980) was an
Indian industrialist. He was widely perceived as a nationalist businessman akin to G.
D. Birla. He co-founded the Arvind Mills along with his brothers and several other
institutes.
Early Life and Education
Kasturbhai was born to Mohini and Lalbhai Dalpatbhai, a Jain family, in 1894 in
Jhaveriwad, Ahmedabad, Gujarat.
He studied at Municipal School Number Eight near Teen Darwaja, Ahmedabad up to fifth grade. He later
joined Ranchhodlal Chhotalal Government High School. He matriculated in 1911 with second class. In 1912,
when he was a 17-year-old studying in Gujarati College, his father died and being the second son, he was asked
to discontinue his studies so as to help in the family business. His father Lalbhai had divided property among
his brothers only in the recent past; as his and his sons' share, Lalbhai had received Raipur mills, a new
establishment.
Business
He joined Raipur Mill as a chairman in 1912. The operations of the mill had not yet stabilised; hence,
Kasturbhai had to take care of operations closely. He started off as a timekeeper in the mill, but fed up with the
repetitive nature of the job, he started working with suppliers of the mill and travelled far and wide to
understand the supplier market. He joined the board of directors of Raipur mill in 1918. Later he established
Ashoka Mills in the 1920s. He expanded business with help of then mentor and trusted general manager of all
the textile mills Mr. Dahyabhai Motilal Patel who had the vision and insight to advise to invest in or acquire
five mills between 1924 and 1938 including four belonging to relatives. Swadeshi movement by Mahatma
Gandhi in the 1930s and starting of World War II in 1939 helped textile industry in India. He modernised all
seven mills.
In 1948, his business group was named in the list of business houses indulging in black-marketing. R. K.
Shanmukham Chetty, the finance minister and a friend of Kasturbhai had to resign for reportedly suggesting
that its name be dropped from the list. The Income Tax department followed its allegations with a spate of
inquiries and after almost ten years, absolved the group of any wrongdoing.
In 1952, his trusted advisor and general manager Dahyabhai Motilal Patel help strategise and start Atul Limited
(literally, 'incomparable'), India's first modern dyestuff manufacturer, in collaboration with American
Cyanamid Company. It was inaugurated by the first Prime Minister, Jawaharlal Nehru.
Politics
He was elected in Central Legislative Assembly in December 1923. During his three-year term, he was involved
in lobbying for Indian industries including repeal of excise duty on textiles. During the 1930s, he came close
with Mahatma Gandhi and helped him in Swadeshi movement which boycotted foreign goods and promoted
local industries. He was also indulged in negotiation of taxes with British for Indian textiles during economic
depression of the 1930s.
Recognition
He was awarded the Padma Bhushan, India's third highest civilian honour in 1969 by the Government of India.