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TMI Blog2015 (1) TMI 1504X X X X Extracts X X X X X X X X Extracts X X X X ..... ate For the Respondent * Sri Chythanya K.K., Advocate) JUDGMENT The Revenue has preferred this appeal against the order passed by the Tribunal up holding the order passed by the First Appellate Authority, where it was held that the 'lease equalization charges' could not be regarded as an amount transferred to reserve as investment in Explanation (b) to Section 115JA(2). 2. The assessee Comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act by issuing notice under Section 148 of the Act. In the said proceedings, it was pointed out that assessee had credited an amount of Rs.57,70,000/- as 'lease rental' after reducing an amount of Rs.55,56,947/- as 'Lease Equalization Account'. According to the Assessing Authority, the lease equalization is in the nature of reserve, he added back the said amount while computing Book Profits and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... since the said amount was not covered within any of the clauses to Explanation below Section 115JA(2) including clause (b), and that the judgment rendered in the case of G.E. CAPITAL TRANSDPORTATION FINANCIAL SERVICES LTD Vs. ACIT, reported in 17 SOT 173, is squarely applicable and therefore it dismissed the appeal. In fact, the said judgment of the Tribunal in G.E. CAPITAL TRANSPORTATION case is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s per Explanation under Section 115JA(2) of the Act. Therefore he submits that a case for interference is made out. 8. Per contra, the learned Counsel appearing for the assessee supported the impugned order. 9. The Assessing Authoirty has added a sum of Rs.55,56,937/- to the Book Profits of the assessee on the ground that the transfer of lease equalization account was in the nature of reserve an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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