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By Vijay Kumar

Customs

Ban on export of edible oils does not amount to infringement of fundamental right of carrying business under article 19(1)(g) of C onstitution: P&H High Court

THE soaring domestic prices of essential commodities forced the Government to come up with some policy changes in relation to regulation of export / import of these commodities recently. One such move was to impose a ban on export of edible oil and simultaneously allow exemption from import duties for the crude oil. But the boon has turned out to be a bane for some manufacturers who had no idea about the likely policy changes when they had entered into agreements with their clients for supply of these goods.

Central Excise

Pre-deposit u/s 35F - Furnishing Bank Guarantee towards payment of amount under order of pre-deposit is not to be treated as a rule: Gujarat HC

“GOVERNMENTS are not run on mere Bank Guarantees . We notice that very often some courts act as if furnishing a Bank Guarantee would meet the ends of justice. No governmental business or for that matter no business of any kind can be run on mere Bank Guarantees. Liquid cash is necessary for the running of a Government as indeed any other enterprise .- Supreme Court in AC.,C.Ex . vs. Dunlop India Ltd . [ 2002-TIOL-156-SC- CX ]

Income Tax

Deduction u/s 80 HHF - profits of entire business to be taken into consideration, notwithstanding loss in exports; expenditure on leased building - depreciation allowable & cable subscription is turnover: ITAT

Deduction u/s. 80HHF : the profits derived from the business as referred to in sub-section (1) would be such profits as are computed in accordance with the provisions of sub-section (3) read with Explanation (f) thereof. For this purpose, the profits of the entire business would be taken into consideration. Consequently, it is held that the Assessing Officer was not justified in denying the claim on the ground that there was loss in the business of export television's software on the basis of segmented Profit & Loss A/c.

See our columns tomorrow for the judgements