2022 (3) TMI 255

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....r dated 02.08.2011, this court admitted the above tax case appeal on the following substantial questions of law: "1. Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in holding that the assessee was entitled to deduction of lease equalization charge, which was nothing but an amount equal to the dimnution in the value of depreciable lease assets, over and above the depreciation allowed under the Income Tax Act, 1961? 2. Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in holding that the "professional charges" paid to M/s. PCR Investments was an allowable deduction even though the payment represented non-compete fee w....

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....on of the Supreme Court at paragraph nos.16 and 17 of the said judgment is as follows: 16) In the present case, the relevant Assessment Year is 1999-2000. The main contention of the Revenue is that the Respondent cannot be allowed 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 p....