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2015 (10) TMI 242 - AT - Income TaxAddition made towards “provision for lease equalization charges” while computing the book profit of the assessee for the purpose of determining tax U/s.115 JB - CIT(A) deleted the addition - Held that:- “Provisions for lease equalization charges” cannot be added back to the profit of the assessee company for computing tax under the provisions of section 115JB of the Act and also under the normal provisions of the Act, because the assessee has only rightly recognized its actual lease rental income in its profit and loss account for the relevant assessment year following the “Matching Concept” and the Accounting Standard-19. Precisely the “Book Profit” computed by the assessee in such case would be as per the provisions of the Companies Act and in compliance with the Accounting Standards which is mandatory. However, neither from the order of the Ld. Assessing Officer nor from the order of the Ld. CIT (A) these facts are revealed. Therefore with the above observations, we remit back both these cases to the file of Ld. Assessing Officer to verify whether the “Provision for lease equalization charges” debited in the P&L A/c of the assessee with the corresponding credit to “lease equalization reserves” are provided in the manner as stated hereinabove by the Ld. A.R and accordingly computed the profit of the assessee as per the normal provisions of the Act, and also for the purpose 115JB of the Act, and if so, delete the addition made on account of “Provision for lease equalization charges” as directed by the Ld. CIT (A) - Decided in favour of revenue for statistical purposes
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