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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 ..... before us is 1999-2000. Thus, we find that the case law of CIT v. Weizmann Homes Ltd. [2013 (5) TMI 123 - KARNATAKA HIGH COURT] post facto amendment squarely applies in this case. So, we accept the Revenue's grounds and hold that the assessee's lease equalisation charges have to be added to its book profits under section 115JA and leave it open for the Assessing Officer to make necessary computation as per law - Decided in favour of assessee. - I.T.A. Nos.1102 & 1103/Mds/2014 - - - Dated:- 2-7-2014 - Dr. O.K. NARAYANAN SHRI S.S. GODARA, JJ. For the Appellant : Shri. Guru Bhashyam, IRS, JCIT For the Respondent : Shri. V.S. Jayakumar, Advocate ORDER S. S. Godara (Judicial Member).- These Revenue's appeals for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the concerned lessees with the actual depreciation claimed. So, he formed an opinion that this was only an unascertained liability to be added back to the book profits under section 115JA. 4. Only on being put up to notice, the assessee pleaded to have computed these lease equalisation charges as per the relevant accounting standards and guidance notes issued by the Institute of Chartered Accountants of India for preparing financial statements which could not be added to its book profits. In assessment order dated November 30, 2006 the Assessing Officer observed that since the impugned lease equalisation charges were not as per the Companies Act, they had to be added to book profits. He also held that these charges were a notional figur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the ground that there may be some years when the quantum of the provision is more than necessary. 34. From this, it is clear that in accordance with the guidance note the appellant had debited the same on account of depreciation and lease equalisation charges before determining the profits and in this kind of lease, the lessor recovers the entire cost of the leased assets over the period of lease along with the interest on the amount financed. 35. In HCL Comnet Systems' case [2008] 305 ITR 409 (SC) 'to cover the diminution made in the value of the asset' cannot be said to be 'a provision for a liability' and held that 'the Assessing Officer could not add back the said provision under c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : (i) Citi Finanical Retail Services (India) Ltd. v. Asst. CIT, Chennai in T. C. (A) No. 701 of 2009 dated August 31, 2009 (assessee's own case for the assessment year 1997-98). (ii) CIT v. Weizmann Homes Ltd. [2013] 357 ITR 74 (Karn) (iii) CIT v. Weizmann Homes Ltd. [2014] 223 Taxmann 147 (Karn) (Mag) Accordingly, the Revenue prays for acceptance of its appeal. 7. In reply, the assessee seeks to justify the Commissioner of Income-tax (Appeals)'s order under challenge. However, on being specifically queried about the aforesaid 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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