Dependent Agent PE unresolved for lack of factual inquiry; arm's-length distribution accepted; royalty claim rejected; 15% refund interest (Section 24...
Exemption under s.10(23C)(iiiad) upheld; appeal allowed, interest and dividends excluded from annual receipts, disallowance deleted, capital gains exe...
ITAT upheld the assessee's accounting treatment, disallowing the tax authorities' rejection of lease equalization charges and related depreciation adjustments. The Tribunal found the assessee had consistently followed the ICAI Guidelines on accounting for leases, separately disclosing lease rentals and matching lease annual charges in the profit and loss account; where annual lease charges fell below minimum statutory depreciation the excess was claimed as expenditure, to be reversed or credited when annual charges exceed statutory depreciation. As a regularly followed, declared accounting policy producing revenue neutrality across assessment years, the treatment is acceptable for tax purposes. Accordingly, the contested grounds were allowed and the disallowances set aside.
ITAT upheld the assessee's accounting treatment, disallowing the tax authorities' rejection of lease equalization charges and related depreciation adjustments. The Tribunal found the assessee had consistently followed the ICAI Guidelines on accounting for leases, separately disclosing lease rentals and matching lease annual charges in the profit and loss account; where annual lease charges fell below minimum statutory depreciation the excess was claimed as expenditure, to be reversed or credited when annual charges exceed statutory depreciation. As a regularly followed, declared accounting policy producing revenue neutrality across assessment years, the treatment is acceptable for tax purposes. Accordingly, the contested grounds were allowed and the disallowances set aside.
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