UTI gets relief on tax demand
Mumbai: The whopping Rs. 1,100 crore tax demand that hung over it’s had like a Damocles sword, has been removed. UTI, the country’s largest mutual fund, won an appeal against the order when the Bombay High court quashed the tax demand which sought to levy tax for the assessment years 1992-93 to 1999-2000.

Although the court’s order states that tax department has the right to levy tax prospectively, it would not affect UTI since the government has stopped levying interest tax from April 1, 2000. However, in future if the government reintroduces interest tax, UTI will be liable to pay the tax.

UTI has not been paying tax on its interest income on the grounds that it is exempt from payment of tax on any income, profits or gains derived from any source, under the UTI Act (Section 32). According to UTI, the interest earned by it is nothing but income earned and hence exempt from taxation.

I-T sources said the department would move the apex court challenging the order of high court.
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India's cellular market grows 90 per cent
New Delhi: According to the Cellular Operators’ Association of India, the number of cellular subscribers that have signed up in March this year shows a 89.84 per cent growth over year-ago levels. The total number of subscribers as of this March is 3.58 million.

The markets with the lowest subscriber potential -- classified as "C" circles -- grew the fastest, according to the association’s figures.

According to the COAI data, the subscriber base in "C" circles expanded by nearly 176 per cent, while in the lucrative metro markets the subscriber base grew 71.19 per cent.

The subscriber base in "B" circles grew 102.72 per cent while the "A" circle grew 99 per cent.

At the end of March this year, metro circles had 1.36 million subscribers, "A" circles 1.17 million, "B" circles 932,685 and "C" circles 116,040 subscribers, the data showed.
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