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2017 (3) TMI 322 - AT - Income TaxMAT computation - adding back Rent equalisation reserve to the book profits - Held that:- The main object of the AS 19 is to deal with the leases concerning movable assets and it specifically excludes lease agreements to use lands. We find considerable force in the submissions of ld. CIT-DR that AS 19 is not applicable to lease of immovable property. Therefore, the Assessing Officer rightly added back the rent equalization reserve debited to Profit & Loss Account while computing the book profit for the purposes of section 115JB of the Act. Moreover, the assessee itself has added back this reserve for the purposes of computation of total income under the normal provisions of the Act. Therefore, in any view of the matter, the stand of the assessee is contradictory. - Decided against assessee.
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