Delfin Finance P. Ltd. Vs ITO (ITAT Delhi)ITAT Delhi Upholds Lease Equalization – ICAI Guidance Note Recognized as Valid- Consistent Accounting Method Cannot Be RejectedAssessee, engaged in finance leasing, had claimed lease equalization charges computed as per the revised Guidance Note on Accounting for Leases issued by ICAI. The annual lease charge would comprise lease equalization charge, where the annual charge is more than the annual ‘statutory depreciation and minimum statutory depreciation. A separate Lease Equalization Account should be opened with a corresponding debit or credit to Lease Adjustment Account, as the case may be. This annual lease charge would comprise (i) minimum statutory depreciation (e.g., as per the Companies Act, 1956) and (ii) lease equalization charge, where the annual lease charge is less than minimum statutory depreciation. (a) A separate Lease Equalization Account should be opened with a corresponding debit or credit to Lease Adjustment Account, as the case may be.