Lease equalisation charges allowable expense; ICAI Guidance Note carries great weight: SC

Supreme Court Ruling – The Guidance Note issued by Institute of Chartered Accountants of India on lease rental income which helps to compute lease equalisation charges, held to be allowable as a deduction. There is no express bar in the Income-tax Act, 1961 regarding the application of such accounting standards. CIT-VI vs. Virtual Soft Systems Ltd. (Supreme Court) [Civil Appeal Nos. 4358 to 4376 of 2018]/ [2018] 92 taxmann.com 370 (SC) Facts of the case The appellant is the Income Tax Department, on the other hand, the respondent (assessee) – M/s Virtual Soft Systems Ltd. is a company ...