TIOL-DDT 822 · the untouched capture
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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"> <html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body> <p><font size="3"><strong><font color="#663399" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT 822 </font></strong><font face="Verdana, Arial, Helvetica, sans-serif"><strong></strong></font></font><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif"><strong><br> 11.03.2008 <br> Tuesday </strong></font></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Seizure of goods – disposal of perishable or hazardous goods – sandalwood added to list </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Section 110 ( 1A ) of the Customs Act, hazardous and perishable goods seized by the Customs may be disposed of immediately after seizure. By Notification No. 31/86-Customs, dated 5 th February, 1986 , the Government had specified the following items under this category. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Liquors; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1A . Photographic Films; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1B . Patent or Proprietary medicine; i.e., any drug or medicinal preparation, in whatever form, for use in the internal or external treatment of, or for the prevention of ailments in, human beings or animals, which bears either on itself or on its container or both, a name which is not specified in a monograph, in a Pharmacopoeia or Formulary. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Primary cells and primary batteries including re-chargeable batteries ; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Wrist watches including electronic wrist watches, watch movements, parts or components thereof ; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3A . Zip fasteners; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. All electronic goods including television sets, Video Cassette Recorders, Tape recorders, calculators, computers, components and spares thereof including diodes, transistors, integrated circuits, etc. ; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4A .Gold in all forms including bullion, ingot, coin, ornament, crude jewellery. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4B . Silver in all forms including bullion, ingot, coin, ornament, crude jewellery. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Dangerous drugs and psychotropic substances. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. Conveyance. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. Man-made yarn and fabric; and </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8. Bulk drugs and chemicals falling under Section VI of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9. Currency, Indian & Foreign. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10. Diamonds, precious and semi-precious stones. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11. Ball Bearings; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12. Cellular Phones. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">13. Software; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">14. Any good seized by the proper officer under section 110 of the Customs Act, 1962 (52 of 1962) for which order for provisional release has been passed but provisional release has not been taken by the concerned person within a period of one month from the date of the communication of such order. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">15. Petroleum products falling under Chapter -27 of the Customs Tariff Act, 1975 (51 of 1975); </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">16. Red Sander. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now item No. 17. Sandalwood is added to the list. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2008/cnt08_025.htm" target="_blank">Notification No. 25/2008 – Cus ( NT) Dated 7th March 2008. </a></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Naphtha – what is the classification? </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A concerned Netizen wrote to us, </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Your <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=6983" target="_blank">DDT 820 dated 07.03.2008</a><strong> on "What is the duty on Naphtha?" </strong> is comprehensive reading both for Netizens and Hon. Board. In the above, you have touched that naphtha should <strong>perhaps </strong> fall under Heading 2710 11 19. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On the Naphtha classification, I would like to bring the <strong>following aspects </strong> to your notice, so that through your communication, this can reach to all the netizens and also to the Hon. Board. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Under Central Excise, 8 digit Tariff was introduced on 28.02.2005. Prior to this introduction, naphtha had specific Heading 2710 14. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Some of the products of Heading 2710 also attracted Special Excise duty of <strong>Second Schedule </strong> and in view of this, Chapter Notes 6 was inserted stating that "In this schedule, tariff item 2710 11 19 does not include "Naphtha". </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) On introduction of 8 digit tariff specific heading of Naphtha was deleted although retaining the specific entry of "Natural Gasoline Liquid ( NGL )" under Tariff Heading 2710 11 20. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv) Under 8 digit tariff , "Light Oil and Preparations" are divided into two groups viz., "Motor Spirit" and "Other than Motor Spirit". The NGL is classified under "Other than Motor Spirit Group". The Motor Spirit Group has the Residual Entry "Other" (2710 11 19) and Other than Motor Spirit Group <strong>also </strong> has Residual Entry "Other" (2710 11 90). </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(v) Naphtha per se is not Motor Spirit as defined under Supplementary Chapter Note. It is one of the input stream for producing Motor Spirit. So is the case for NGL . This perhaps appeared to be the reason for dividing Light Oil and Preparations into two separate sub-groups. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(vi) The Residual Entry in Motor Spirit Group viz., 2710 11 19 is for Motor Spirit popularly known as Petrol. When naphtha is obviously not Petrol (Motor Spirit), it should obviously be classified under Residual Entry of "Other than Motor Spirit" Group viz., 2710 11 90. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(vii) In the Budget 2006 when effective duty rates for First Schedule and Second Schedule were combined exempting duty for Second Schedule, Naphtha would attract 32% of duty if specific notification i.e. 23/2006 dated 01.03.2006 was not issued prescribing the duty rate of 16% for naphtha. Incidentally in this notification, sub-heading 2710 has only been referred while prescribing effective rate of duty on naphtha. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(viii) In the above background, Naphtha should appropriately be classifiable under 2710 11 90 and not 2710 11 19. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ix) It may kindly be noted that internationally there are no sub divisions of Heading 2710 and all details are prescribed only under Excise & Customs Tariff Acts. <br> <br> </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is indeed heartening to note that we have such enlightened Netizens, who take the trouble of intensive reading and incisive analysis. Such Netizens make <strong>TIOL </strong> what it is and we are immensely grateful to this tribe. This places a huge responsibility on us – we have a very well informed audience who will not take crap and so we have to be very very careful of what we carry! </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Thank You Sir !, That was a wonderful analysis – and this came from an assessee and not the Department, which goes on to prove how well informed our assessees are. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">To know the trauma that an ill informed taxman can cause to an assessee, see the story below. </font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Life turned upside down – because of the Taxman's blunder – for a paltry 88 pence! </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Last night England 's ITV carried a tragic story. "The Inland Revenue bankrupted me for just 88p . My life was turned upside down and my family almost ended up homeless because of their total and utter incompetence. ", said Matt Matharu , a former cab driver. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For 53 year old Matt , life was good. He was earning almost £50,000 as a director of a graphic design company. His wife, Kate , and their two children, who lived with them, all had full-time jobs. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">That was until Inland Revenue, by a mistake decided to wreck Matt 's life. Now he is back to driving a cab, thanks to the taxman. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">His problems started after he switched job in 2000 to become a graphic designer. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tax was deducted automatically from his salary, but although he told HMRC he was no longer self-employed, last year it sent him a bill for £12,000 based on his previous tax records. He told them that there had been a mistake and expected the tax bill to be withdrawn. "You just keep hoping and hoping that someone is going to listen, look at the paperwork you've supplied them, press a button on a computer," he said. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">However, Revenue &Customs took him to court and last August he was officially made bankrupt. A month later Revenue admitted it had made a mistake and Matharu's real debt was just 88p . </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Matthew Elliot , chief executive of the <a href="http://www.taxpayersalliance.com/?PDA=1??tday=Wednesday">Taxpayers Alliance </a>, said: "In a court of law people are seen to be innocent until proven guilty, <strong><font color="#FF6633">but with the tax authorities they see people as being guilty until proved innocent. You can supply all the evidence you've got, all your salary slips, your chequebooks, literally everything, but the taxman still comes after you." </font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Matharu was declared bankrupt by a High Court judge in London. He had not even attended the hearing, having been told it would be adjourned as a matter of routine to give him time to challenge the order. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Later, the couple's joint bank account was frozen, their mortgage company took out a possession order on their house and Mr Matharu was forced to quit his job because bankrupts cannot be company directors. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Matharu wonders, "It's the age of the computer, you know Big Brother knows everything about us, so why doesn't he know about my tax affairs?" </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">With the £12,000 tax bill lifted, Mr Matharu had the bankruptcy order overturned at another court hearing in January. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The mistake is detected. Are they free now? Once you are in taxman's net, you don't go out so easily. The Matharus face another court hearing this month to decide if they should pay the £2,000 Official Receiver's costs for administering the bankruptcy. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mrs Matharu , 46, a computer software technician, said they had already offered to pay another £750 costs bill "to get it out the way" and the family was now £15,000 in debt because of the tax blunder. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Her husband had to return to taxi driving, knowing their house could be repossessed at any time if they fail to keep up with monthly payments. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">To complicate things further, Mrs Matharu is being threatened with the bailiffs for a "self-assessment" tax demand of £1,900. She insists this is another blunder, as her tax is deducted from her salary. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Describing the family's plight, she said: "It's like saying, 'you've had an earthquake – don't worry about the damage it has left behind, the earthquake has stopped now'. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"Well it's not like that. It has left a huge wake of damage behind us and we are really struggling. It almost finished us. But we're quite practical people and we have looked for a solution, but anybody of lesser character, it could have quite easily finished them off, I think." </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mr Matharu has never received an apology from the Inland Revenue. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Our Taxmen are not that bad! Are they? </strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Large payments – mandatory through e-mode – RBI instructions </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Come 1 st April 2008, All payment transactions of Rs. 1 Crore and above between the RBI regulated entities such as banks, primary dealers and NBFCs and All payments of Rs. 1 Crore and above in RBI regulated markets such as money market, Government securities market and foreign exchange market have to be mandatorily routed through electronic payment mechanism, as per a letter issued by RBI yesterday. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/pdfdocs/e-mode.pdf" target="_blank">RBI /2007-2008/261 DPSS No. 1407 / 02.10.02 / 2007-2008 Dated the 10 th march 2008. </a></font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Jurispruden</font> <font color="#FF6633" size="5">tiol</font> <font color="#006600">– Tomorrow ' s cases </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><strong><b><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_31.gif" alt="Legal Corner Icon" width="191" height="160" hspace="5" border="0" align="left"></b></strong></b></font></b></font></b></font></b></font></b></font></b></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></b></font></b></font></b></font></b></font></b></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Central Excise </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">SSI exemption – misdeclarations that brand name belonged to the assessee when it actually belonged to their foreign collaborator – extended period invocable ; Price to be treated as cum duty : Supreme Court </font></strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BOTH </strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Revenue and the assessee are in appeal before the Supreme Court against the Tribunal's order – and both lost! </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Assessee is engaged in the manufacture of photographic chemicals. During the period from March, 1988 to February, 1992 assessee cleared its products under the brand name " Tetenal " without payment of duty, claiming the benefit of exemption under Notification No. 175/86-CE dated 1.3.86. From the result of investigation conducted by the officers of Central Excise, it was found that the brand name " Tetenal " belonged to M/s Tetenal Vertribs GmBH , Germany and that the assessee was not eligible for the benefit of exemption Notification as they had cleared their product affixed with the brand name of another person. It further appeared to the department that the assessee had mis -stated and suppressed facts with intent to evade payment of duty on the goods. The department, therefore, by show cause notice dated 24.6.1992 called upon the assessee to pay central excise duty of Rs.32 ,25,465 /- on the goods cleared during the period and also to show cause why penalty should not be imposed on them. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Collector (as he then was) vide his order dated 5.11.1992 dropped the proceedings. The Revenue filed an appeal before the Tribunal. The Tribunal by its order dated 21.3.2000 held that the assessee was not entitled to the benefit of the Notification and consequently remanded the matter to the adjudicating authority for fresh decision on the question whether the demand of duty was within the time prescribed under the Act. </font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Turnover tax if not paid to State Government cannot be allowed as deduction from Assessable Value – A seven-year wait for Revenue to win before Tribunal </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The respondents were filing declaration under Rule 173C of the Central Excise Rules, 1944 & claiming deduction in respect of turnover tax. The jurisdictional Superintendent enquired whether turnover tax has been actually paid to the relevant authorities or not and to provide evidence to that effect but the respondents did not furnish the relevant information. So, they were issued a demand notice amounting to Rs.33.07 lakhs in respect of the deduction of turnover tax claimed by them from the price for which they could not produce evidence of having paid the same to the relevant authority. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">MRP valuation applies to industrial consumers who buy retail packages - Bad phraseology should not defeat the intent of rule-making authority: Bombay High Court. </font></strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>OFFICERS</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> </strong>from the Directorate General of Central Excise Intelligence, Mumbai Zonal Unit, seized goods (switch gear) from M/ s.Total Logistics India Private Limited, a stockist of the petitioners, L&T . </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The petitioners aggrieved by the seizure, preferred a petition before the High Court and the High Court directed the petitioners to make an application to the Commissioner who considering the provisions of the Standards of Weights & Measures Act, and The standards of Weights and Measures (Packaged Commodity) Rules 1977, was to decide whether the provisions of the said Act and rules are applicable to the seized goods. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Commissioner on hearing the parties, was pleased, by order of 6th July, 2007 to hold that the seized goods packages under reference are indeed intended for retail sale and therefore, have to comply with the requirement of the provisions of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977. </font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax </strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Provision for performance warranty - allowable deduction; Writing off of sums under 'preliminary and deferred revenue expenses' due to change in accounting method allowable even if it leads to reduction in net profit for computation of book profits u/s 115JB : ITAT </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">THE Tribunal was confronted with a question of allowability of deduction of provision made for performance warranty and adjustment/ addition that can be made in computation of book profits. The assessee had made a provision for performance warranty as it had to take care of and rectify at its own cost any defect/error arising in its work within a period of 12 months of completion of the work. It held it to be an allowable deduction. Similarly it held that writing off of the balance amount under the head of 'preliminary and deferred revenue expenses' as a result of change in accounting standard by the assessee was justified even if it led to reduction in the net profit in P&L a/c in computation of book profits u/s 115JB as there was nothing to stop a Co. in changing its accounting standard as long as it is a recognised system of accounting by the ICAI and therefore the amount could not be added back to the profits for the purposes of computation u/s 115JB . Moreover only those additions for the purpose of book profit can be made which are laid out in clause (a) to (f) of explanation to Sec.115JB . Thus on the issues in front of it, the Tribunal held in favour of the assessee. </font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our columns tomorrow for the judgements </strong></font></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until tomorrow with more DDT </font></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day. </font></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to</font><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif"></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com </a></font></p> </body> </html>