Assessee-company paid lease rentals to lessor for aircrafts acquired on operating lease and claimed. The Assessing Officer disallowed the expenses. On appeal Commissioner (Appeals) held that credits received by assessee from engine manufacturer for selecting its engine in aircraft were not transferred to lessors hence the expense of lease rentals was partly attributable to credits received by assessee and made proportionate disallowance of expenditure claimed by assessee. Tribunal held that since agreement to receive credit and payment of lease rentals under lease agreement which was executed much later for obtaining aircrafts on operating lease were separate transactions, proportionate disallowance of lease rentals could not be made.  Tribunal also held that lease agreement that SR was calculated based upon flying hours attributable towards critical parts of aircraft and post incurring maintenance expenditure, assessee was entitled to reimbursement only to extent SR funds was maintained by lessor. Since SR was determinable as per terms of lease agreement and was a mandatory payment, same could not be said to be reimbursable and once business liability of SR was ascertained it was to be allowed as expenditure.   (AY. 2012-13)