COMMISSIONER OF INCOME TAX VI vs VIRTUAL SOFT SYSTEMS LTD.

The Supreme Court addressed the issue of whether lease equalization charges can be deducted from lease rental income under the Income Tax Act, 1961. The Court held that such deductions are permissible based on the Guidance Note issued by the Institute of Chartered Accountants of India (ICAI), affirming the ITAT's decision which allowed the deduction. Consequently, the Court dismissed the Revenue's appeal, upholding the High Court's ruling that confirmed the ITAT's order.