https://www.taxtmi.com/caselaws?id=66222 The dominant issue was whether the AO could invoke the proviso to s.145(1) to reject the assessee's lease accounting and disallow lease terminal adjustment/lease equalisation. The ITAT held that the assessee, an NBFC, followed the ICAI Guidance Note and applicable accounting standards, which constitute a recognised, scientific, and regulator-mandated method from which true income can be deduced; the AO's illustrations were flawed and no proper alternative method was demonstrated. Consequently, rejection of the method of accounting under s.145 was unwarranted, and the disallowance of the lease terminal adjustment amount was deleted; the assessee's appeal was allowed. en-us Tue, 26 Mar 2002 00:00:00 +0530 Mon, 12 Jan 2026 12:54:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=66222 The dominant issue was whether the AO could invoke the proviso to s.145(1) to reject the assessee's lease accounting and disallow lease terminal adjustment/lease equalisation. The ITAT held that the assessee, an NBFC, followed the ICAI Guidance Note and applicable accounting standards, which constitute a recognised, scientific, and regulator-mandated method from which true income can be deduced; the AO's illustrations were flawed and no proper alternative method was demonstrated. Consequently, rejection of the method of accounting under s.145 was unwarranted, and the disallowance of the lease terminal adjustment amount was deleted; the assessee's appeal was allowed. Case-Laws Income Tax Tue, 26 Mar 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=66222