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TMI Blog2019 (1) TMI 1961X X X X Extracts X X X X X X X X Extracts X X X X ..... , a conjoint reading of Section 145 of the IT Act read with Section 211 (un-amended) of the Companies Actmake it clear that the Respondent is entitled to do such bifurcation and in our view there is no illegality in such bifurcation as it is according to the principles of law. Moreover, the rule of interpretation says that when internal aid is not available then for the proper interpretation of the Statute, the court may take the help of external aid. If a term is not defined in a Statute then its meaning can be taken as is prevalent in ordinary or commercial parlance. Hence, we do not find any force in the contentions of the Revenue that the accounting standards prescribed by the Guidance Note cannot be used to bifurcate the lease rental t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9- 2000, 2002-03 and 1999-2000. 2. This Court vide order dated 25.08.2009 admitted the following substantial questions of law for consideration: Assessment Year: 1999-2000 : 1. Whether on the facts and circumstances of the case, the Tribunal was right in holding that the assessee is entitled to deduction of lease equalisation charge, which is nothing but an amount equal to the diminution in the value of depreciable leased assets, over and above the depreciation allowed under the Income Tax Act? Assessment Years: 1999-2000 2002-03: 2. Whether on the facts and circumstances of the case, the Tribunal was right in holding that interest under section 234D cannot be charged in respect of the assessment years ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to claim deduction regarding lease equalization charges since as such there is no express provision regarding such deduction in the IT Act. However, it is apt to note here that the Respondent can be charged only on real income which can be calculated only after applying the prescribed method. The IT Actis silent on such deduction. For such calculation, it is obvious that the Respondent has to take course of Guidance Note prescribed by the ICAI if it is available. Only after applying such method which is prescribed in the Guidance Note, the Respondent can show fair and real income which is liable to tax under the IT Act. Therefore, it is wrong to say that the Respondent claimed deduction by virtue of Guidance Note rather it only applied the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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