Lease equalization charges not to be added back in computing book profits U/s. 115JA

CIT Vs. M/s. MGF India Ltd. (Delhi High Court)

Lease equalization charge is a method of re calibrating the depreciation claimed by the assessee in a given accounting period. The method employed by the assessee, therefore, over the full term of the lease period would result in the lease equalization amount being reduced to a naught, as the debits and credits in the profit and loss account would square off with each other. Under the circumstances, the same is neither in the form of a reserve nor a deduction.

Lease equalization charge is not in the n

Please become a Premium member. If you are already a Premium member, login here to access the full content.