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2012 (7) TMI 754 - HC - Income TaxLease rental – capital or revenue - assessee had reduced the aforesaid amount representing the lease equalisation account from the lease rental of Rs. 11,84,21,434/-. - disallowance made by the lower authorities on the claim of the appellant with regard to the lease equalisation account – Held that:- amount received towards capital recovery constitute the capital expenditure, whereas, the financing charge represents the revenue receipt, which is the real income. It is as per the accounting standards prescribed by the ICAI. Therefore, the assessee under the Act has to offer to tax only the real income and not the total receipt. - He is not liable to pay any tax under the Act on the capital recovery - assessee was justified in adopting the accounting standards and he is entitled to claim the said amount as deductions – In favor of assessee
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