2019 (1) TMI 1961

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....Years 1999- 2000, 2002-03 and 1999-2000. 2. This Court vide order dated 25.08.2009 admitted the following substantial questions of law for consideration: Assessment Year: 1999-2000 : 1. Whether on the facts and circumstances of the case, the Tribunal was right in holding that the assessee is entitled to deduction of lease equalisation charge, which is nothing but an amount equal to the diminution in the value of depreciable leased assets, over and above the depreciation allowed under the Income Tax Act? Assessment Years: 1999-2000 & 2002-03: 2. Whether on the facts and circumstances of the case, the Tribunal was right in holding that interest under section 234D cannot be charged in respect of the asses....

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....llowed to claim deduction regarding lease equalization charges since as such there is no express provision regarding such deduction in the IT Act. However, it is apt to note here that the Respondent can be charged only on real income which can be calculated only after applying the prescribed method. The IT Actis silent on such deduction. For such calculation, it is obvious that the Respondent has to take course of Guidance Note prescribed by the ICAI if it is available. Only after applying such method which is prescribed in the Guidance Note, the Respondent can show fair and real income which is liable to tax under the IT Act. Therefore, it is wrong to say that the Respondent claimed deduction by virtue of Guidance Note rather it only appli....