Deferred Expenditure Misleads Financial Health; Not Recognized by Companies or Income Tax Acts.

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....MAT computation - Neither under the Companies Act nor under the Income Tax Act, this concept of deferred expenditure is recognized. That is a pathology used by the chartered accountants to show to the shareholders that the company has made profit though it has not earned profits. It is nothing but a window dressing and the authority should not be mislead or guided by this balance sheet which is prepared to satisfy the shareholders. - HC....