Supreme Court · 2018 INSC 399 · Decided 24 April 2018
Commissioner of Income Tax-Vi v. Virtual Soft Systems LTD.
- Court
- Supreme Court of India
- Citation
- 2018 INSC 399 · [2018] 5 S.C.R. 595
- Case number
- CIVIL APPEAL No. 4358/2018
- Decided
- 24 April 2018
- Bench
- R.K. AGRAWAL, ABHAY MANOHAR SAPRE (2-judge bench)
- Outcome
- Appeal(s) allowed
- Case type
- Civil
- Acts & sections cited
- Companies Act Section 211; Income Tax Act
Headnote
Income Tax Act, 1961 - Deduction on account of lease equalization charges from lease rental income - Entitlement for - Held: The bifurcation of the lease rental is, by no stretch of imagination, an artificial calculation and, therefore, lease equalization is an essential step in that real income from the transaction in the form of revenue receipts only is captured for the purposes of income tax - Moreover, there is no express bar in the IT Act which bars the bifurcation of the lease rental - This bifurcation is analogous to the manner in which a bank would
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