Birlasoft Ltd. v. Asst. CIT (2025) 127 ITR 63 / 173 taxmann.com 634 (Delhi)(Trib.)

S. 37(1): Business expenditure-Lease equalisation reserve-Accounting Standard-19-Not a contingent liability-Deduction allowable. [S. 145]

The assessee claimed deduction towards lease equalisation reserve computed in accordance with Accounting Standard-19 for spreading lease rentals over the lease period. The Tribunal held that the claim represented a recognised method of accounting consistently followed by the assessee and accepted by the Revenue in other years. The lease equalisation reserve was not a contingent liability and was allowable as business expenditure. (AY. 2014-15).

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