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2019 (4) TMI 1583 - HC - Income TaxLease Equalisation Charges - deductibility as expenditure against the Lease Rental Income - HELD THAT:- Issue as decided against the Revenue by the Supreme Court in the case of Commissioner of Income Tax v. Virtual Soft Systems Ltd., [2018 (4) TMI 1472 - SUPREME COURT] , wherein held that Lease Equalisation Charges are deductible as expenditure against the Lease Rental Income in the hands of the Assessee. Question No.1 is answered in favour of the Assessee and against the Revenue. MAT - Provision for Non Performing Assets to be added back for computing Book Profits u/s 115JA - HELD THAT:- Issue decided in M/S. INTEGRATED FINANCE CO. LTD. VERSUS THE DEPUTY COMMISSIONER OF INCOME-TAX [2019 (2) TMI 1439 - MADRAS HIGH COURT] held the settled position in law as on date is that with effect from 01.04.1998 any amount set aside as provision for diminution in value of asset would be liable to be added back to the ''book profits'' in terms of s.115JA - Decided against assessee. Allowability of Provision for Non Performing Assets - HELD THAT:- The said issue is covered by a decision of a Co-ordinate Bench of this Court in the case of T.N.Power Finance Infrastructure Development Corpn. Ltd. v. Joint Commissioner of Income Tax, [2005 (10) TMI 38 - MADRAS HIGH COURT] held that Appellate Tribunal was right in upholding the order of the Commissioner of Income-tax (Appeals) in disallowing provision for non-performing assets which was debited to the profit and loss account. Accordingly, the question of law is answered in the affirmative, against the assessee and in favour of the revenue.
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