Indian shares and the rupee have continued to rise

As polling booths close in the world's largest election following weeks of voting. Results are due on Friday, with the business-friendly Bharatiya Janata Party, led by Narendra Modi, expected to win handsomely. Shares could climb further if he gets anywhere near or above the 272 seats required for a majority in parliament.

India still needs to improve its trade balance.

If one were to look at the trade balance data for the last 12 months, India still continues to languish in the red. Despite placing curbs on gold imports, the trade balance hasn't really improved and the reason for this can be attributed to weaker exports. Indeed, given the global economic slowdown, exports have not really set the pulse racing and this has had its impact on India's overall trade balance as well. Because India still imports a significant portion of oil that it consumes, there will always be the pressure of oil imports on the overall import bill. That is why it is necessary that various steps are taken so that exports become more competitive and ease the pressure on the overall trade balance.

Germany's exports fell 1.8% on month in March

After dropping 1.3% in February and missed forecasts, with the crisis in Ukraine and China's slowdown weighing on the figure. Imports declined 0.9% and the trade surplus slipped to €14.8B from €15.8B. As per ING economist Carsten Brzeski, " With ongoing geopolitical problems and the slowing emerging economies, it looks as if Germany's famous export engine could still be sputtering for a while."

China's inflation slowed to an 18-month low.

 China's inflation falls of 1.8% on year in April from 2.4% in March and came in below consensus of 2%. Factory-gate prices (PPI) dropped for the 26th consecutive month with a decline of 2%. With other data indicating that China's economy is slowing down, economists attributed the fall in CPI to a weakness in demand. Today's data has increased expectations that the government will further ease monetary and fiscal policy.

S. 32: Assessee (Bank) is entitled to depreciation on assets given on lease

ICICI Bank Ltd vs. JCIT (ITAT Mumbai)

In so far as the issue relating to the claim of depreciation on leased transactions is concerned, the Supreme Court in ICDS vs. CIT 350 ITR 527 had the occasion to consider the question “whether the Assessee is entitled to depreciation on vehicles financed by it which is neither owned by the Assessee nor used by the Assessee?” The Supreme Court after perusing the lease agreement and other related factors held that the lessor is the owner of the vehicles. As an owner, it used the assets in the course of its business satisfying both the requirements of S. 32 of the Act and hence is entitled to claim depreciation. A similar view was taken by the Delhi High Court in Cosmos Films 338 ITR 266 wherein the Delhi High Court considered the implications of S. 19 of Sale of Goods Act, 1930. The Tribunal, Mumbai Bench in the case of Development Credit Bank Ltd has followed the decision of the Supreme Court in the case of ICDS and the decision of Delhi High Court in the case of Cosmos Films and allowed the claim of depreciation. The Tribunal, Mumbai bench, in the case of L&T has considered a similar issue and followed the findings of the Supreme Court in the case of ICDS and also of the co-ordinate bench in the case of Development Credit Bank Ltd and allowed the claim of depreciation on sale of lease back assets. Considering all these judicial decisions in the light of the facts, we direct the AO to allow depreciation

Australia's jobless rate held steady at 5.8%

In April and came in just below consensus of 5.9%. The number of people in work climbed 14,200, although the participation rate slipped to 64.7% from 64.8%. The increased number of jobs comes after the Reserve Bank of Australia left its benchmark interest rate at a record-low 2.5% this week amid slowing inflation and ahead of expected cuts in government spending.

Chinese trade surprisingly grew in April

As imports increased 0.9% on year after falling 6.6% in March and imports rose 0.8% following a drop of 11.3%. The trade surplus more than doubled to $18.45B from $7.71B and topped forecasts of $13.90B. The readings are in contrast to other data which indicate that China's economy has been slowing and come after a 2.8% fall in the yuan vs the dollar this year.