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2017 (5) TMI 1767 - AT - Income TaxComputation of book profits for the purpose of computing tax liability u/s 115JA - as per Appellate Authorities provision for non-performing assets and lease equalization fund cannot be added back to the book profits as per explanation to section 115JA(2) - HELD THAT:- Having regard to the plain provisions of the Act, the said amount can be added back to book profits for the purpose of determining 115JA of the Act, as it is specifically authorised by clause (g) to Explanation to sub-section (2) of section 115J. This is permissible as per law laid down by the Hon’ble Supreme Court in the case of Apollo tyres [2002 (5) TMI 5 - SUPREME COURT] and the decision of Weizmann Homes Ltd. [2013 (5) TMI 123 - KARNATAKA HIGH COURT] The decision of the Hon’ble Delhi High Court in the case of Indian railway Finance Corporation Ltd.[2014 (6) TMI 224 - DELHI HIGH COURT] is not applicable to the facts of the present case as in that decision, it is not admitted that provision for lease equalisation charges is nothing but diminution in the value of assets. Therefore, the CIT(A) ought not to have allowed the claim of the assessee without examining the order of the Hon’ble High Court of Karnataka in detail. Therefore, the orders of the CIT(A) are reversed. Appeals filed by the revenue are allowed.
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