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TMI Blog2015 (10) TMI 996X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 143(3) read with section 147 of the Income-tax Act 1961 (in short the "Act") deleting additions of Rs. 97,19,760 and Rs. 1,69,31,685 towards lease equalisation charges for the purposes of computing book profits under section 115JA of the Act. Since the issue involved in both cases is identical, we take up ITA No.1102/Mds/2014 as the "lead" case. ITA No. 1102/Mds/2014 2. The assessee is a private limited company. It is engaged in the business of leasing, hire purchase and finance of vehicles. On December 16, 1999, the assessee had filed its "return" admitting income of Rs. 90,22,970 under "normal" computation and Rs. 3,00,76,566 under "MAT" provisions under section 115JA of the Act. The same was "summarily" processed. 3. In scrutiny, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Income-tax (Appeals) has accepted its contentions as under : "5.2 I have carefully considered the facts of the case and the submissions made by the learned authorised representative, I have gone through the decision of the hon'ble High Court of Madras as reported in TVS Finance and Services Ltd. [2009] 318 ITR 435 and find the issue under appeal to be squarely covered in favour of the appellant by the said decision. The relevant extract of business and is reproduced as under (page 451 of 318 ITR) : '33. This is in accordance with the guidance norms on accounting for l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15JA of the 1961, Act.' The fourth question in T. C. (A) Nos. 108 and 110 of 2002 are answered in favour of the assessee.' The said decision of the hon'ble High Court on the provisions of section 115JA would be equally applicable to the provisions of section 115JB also. Respectfully following the decision of the jurisdictional High Court of Madras, I hold that the Assessing Officer was not correct in adding the lease equalisation charges to the income of the appellant for the purposes of section 115JB and direct the Assessing Officer to reduce this amount for the said purpose. The grounds of appeal as they relate to this issue, therefore are allowed. After considering the submission on all grounds of appeal, the appeal in I. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid amendment, it fails to give any specific clarification based on any material to distinguish its lease equalisation charges to be out of the purview of section 115JA of Explanation 1(g). In these circumstances, we observe that after retrospective amendment in the Act by way of the Finance (No. 2) Act, 2009, the assessee's stand is no more sustainable. It is to be seen that the hon'ble High Court in the assessee's case for the assessment year 1997-98 has taken cognizance of the abovestated amendment qua identical lease equalisation charges to observe that this amendment would apply from April 1, 1998. We reiterate that the assessment year involved before us is 1999-2000. Thus, we find that the case law of CIT v. Weizmann Homes ..... X X X X Extracts X X X X X X X X Extracts X X X X
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