https://www.taxtmi.com/caselaws?id=779675 ITAT DELhi (AT) allowed the assessee's claim for lease equalization charges and depreciation, holding the assessee followed the ICAI Guidelines on accounting for leases and properly disclosed the policy in financial statements. The tribunal found annual lease charges computed per the Guidelines represent recovery of net investment and that where annual charges are less than minimum statutory depreciation the claimed equalization is a legitimate expenditure recorded regularly. As the method is consistently applied and merely defers tax effect to subsequent years with no loss to Revenue, the accounting treatment cannot be disallowed. en-us Mon, 22 Sep 2025 00:00:00 +0530 Fri, 10 Oct 2025 08:44:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=779675 ITAT DELhi (AT) allowed the assessee's claim for lease equalization charges and depreciation, holding the assessee followed the ICAI Guidelines on accounting for leases and properly disclosed the policy in financial statements. The tribunal found annual lease charges computed per the Guidelines represent recovery of net investment and that where annual charges are less than minimum statutory depreciation the claimed equalization is a legitimate expenditure recorded regularly. As the method is consistently applied and merely defers tax effect to subsequent years with no loss to Revenue, the accounting treatment cannot be disallowed. Case-Laws Income Tax Mon, 22 Sep 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=779675