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2022 (3) TMI 255 - HC - Income TaxEntitled to deduction of lease equalization charge - bifurcation of lease rental as per the accounting standards / Guidance Note prescribed by the ICAI - amount equal to the diminution in the value of depreciable lease assets, over and above the depreciation allowed under the Income Tax Act, 1961 - HELD THAT:- The first substantial question of law involved in this appeal has already been considered and decided in favour of the assessee by judgment [2019 (1) TMI 1961 - MADRAS HIGH COURT]as held that the rule of interpretation says that when internal aid is not available then for the proper interpretation of the Statute, the court may take the help of external aid. If a term is not defined in a Statute then its meaning can be taken as is prevalent in ordinary or commercial parlance. Hence, we do not find any force in the contentions of the Revenue that the accounting standards prescribed by the Guidance Note cannot be used to bifurcate the lease rental to reach the real income for the purpose of tax under the IT Act. To sum up, we are of the view that the Respondent is entitled for bifurcation of lease rental as per the accounting standards prescribed by the ICAI. Moreover, there is no express bar in the IT Act regarding the application of such accounting standards - Decided against revenue.
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