ACIT, NEW DELHI V. M/S. CONTAINER CORPORATION OF INDIA LTD., NEW DELHI

MA 237/DEL/2021

AI Insights

The case revolves around the Revenue's application to recall a previous Tribunal order that granted the assessee, Container Corporation of India Ltd., a deduction under section 80IA for their rolling stock used in a rail system for the assessment year 2008-09. The Revenue contended that the Tribunal had mistakenly stated that the issue was covered by High Court orders for earlier assessment years, whereas it was not. The assessee countered by citing that the issue had been adjudicated in their favor in previous years, and the Revenue had not appealed against those decisions. The Tribunal reviewed the submissions and found that the Revenue's claims were incorrect and that the issue had indeed been settled in favor of the assessee in earlier rulings, which were upheld by the High Court and the Supreme Court.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708664 (ITAT-DELHI)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 15-07-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Assessment Year: 2008-2009
• Other Referred Cases: Container Corporation of India Ltd. Vs. ACIT [305 ITR 284 (Del.)], 404 ITR 397 (SC)
• Laws Referred To: Section 80IA of the Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: OM PARKASH
• Assessee Lawyers: S. KRISHNAN

Judgement Text

"MA.No.237/Del/2021 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B” NEW DELHI SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER AND SHRI M BALAGANESH, ACCOUNTANT MEMBER MA No.237/Del/2021 (In ITA No.1920/Del/2017) िनधा\u0005रणवष\u0005/Assessment Year:2008-09 ACIT, Circle-6(2), Room No.390, C.R. Building, New Delhi. बनाम Vs. M/S CONTAINER CORPORATION OF INDIA LTD., Concor Bhawan, C-3, Mathura Road, New Delhi. PAN No.AAACC1205A अपीलाथ\u0011 Appellant \u0013\u0014यथ\u0011/Respondent िनधा\u0005\u0006रतीक ओरसे /Assessee by Shri S. Krishnan, Adv. राज\u0010वक ओरसे /Revenue by Shri Om Parkash, Sr. DR सुनवाईक तारीख/ Date of hearing: 25.04.2025 उ\u0016ोषणाक तारीख/Pronouncement on 15.07.2025 आदेश /O R D E R PER C.N. PRASAD, J.M. Through this miscellaneous application the Revenue is seeking to recall the order of the Tribunal in ITA 1920/Del/2017 dated 13.01.2020 for the AY 2008-09 in holding that the assessee is entitled for deduction u/s 80IA in respect of rolling stock constituted a rail system. 2. The Revenue in its miscellaneous application stated that the Tribunal observed that the issue of deduction u/s 80IA is covered by MA.No.237/Del/2021 2 the orders of the High Court for AY 2003-04, 2004-05 and 2005-06. However, on perusal of the orders of the ITAT for AY 2003-04 to 2005-06 deduction u/s 80IA was allowed under income from rolling stock and not on the profits earned from Inland Container Depots (ICDs) and in the further appeal to High Court the issue of deduction u/s 80IA was decided in favour of the assessee only on ICDs and therefore it is a mistake in Tribunal stating that the claim of deduction u/s 80IA against income from rolling stock is covered under the judgments of Hon’ble High Court/Supreme Court is wrong. 3. On the other hand, the Ld. Counsel for the assessee stated that the issue of claim for deduction u/s 80IA on rolling stock as well as ICDs came up for adjudication in its initial year being AY 2003-04 and the Tribunal allowed the claim u/s 80IA on rolling stock but sustained the disallowance in so far as the income from ICDs are concerned. The Tribunal order is reported in Container Corporation of India Ltd. Vs. ACIT [305 ITR 284 (Del.)]. The assessee appealed in High Court against the order of the Tribunal and succeeded in respect of deduction u/s 80IA on ICDs. Revenue’s appeal against the judgment of the Hon’ble Delhi High Court was dismissed by the Hon’ble Supreme Court reported in 404 ITR 397 (SC). MA.No.237/Del/2021 3 4. Ld. Counsel further submitted that in so far as deduction u/s 80IA on rolling stock is concerned the Revenue did not file any appeal before the High Court against the judgment of the Tribunal rendered for assessment years 2002-03 to 2005-06. Ld. Counsel further stated as under: “10. lTAT noted these facts at Para 2.0 of order in ITA No. 1920/Del/2017 (PG-35), challenged in the present M.A., noting contention on Assessee's behalf that the issue was covered by ITAT's judgment in AY 2003-04 to AY 2005-06 (Para 3.0 @ PG-37). It also noted the contention that Revenue's challenge to ITAT's orders \"/or the various assessment years\" had been unsuccessful. ITAT also noted contention before it, that \"The CIT (DR) fairly accepted that the issue stood covered against the revenue”. On this very ground, the M.A. merits dismissal. ITAT thereafter noted details of the claim for deduction qua Rail System (PG - 38 to 45), and then noted at Para 5.1 (PG-45), that ITAT's order had attained finality. This finding is also subject matter of challenge. 11. After the closure of Committee on Disputes, Revenue did in fact challenge the ITAT's order in various years, wherein deduction u/s.80-1A had been allowed on 'Rolling Stock' / Rail System. Vide order dated 31.10.2017 (PG-47), Revenue's appeals for AY 2008-09 & 2009-10 in ITA 917/2017 & 918/2017 were dismissed. At Para 4 of the order, claim u/s.80-1A on 'ICD' as well as 'Rolling Stock', as allowed by ITAT, were directed to be confirmed. On the Rolling Stock issue, the High Court specifically noted that \"ITAT has relied upon its previous ruling”, referencing the order dated 27.02.2009 passed for Ay 2003-04 to AY 2005-06. Revenue's SLP's against both orders stood dismissed by Hon'ble Supreme Court on 07.05.2018 (PG 49 & 50). Therefore, the issue of claim u/s.80-IA on Rolling Stock has in fact travelled to High Court & Supreme Court, and ITAT's observations as challenged in the present M. A. are correct. MA.No.237/Del/2021 4 12. However, since the Revenue's action in AY 2008-09 were based on findings in AY 2012-13, it merits to be pointed out that vide order dated 16.12.2019 (PG-72), ITAT has decided the issue once again on merits in the Assessee's favour: a) Ground 1 in the Revenue’s appeal is noted as being on the claim u/s 80IA on Rail System; b) The issue is decided vide finding at para 7, wherein ITAT has duly referred the orders of High Court as well as Supreme Court as above.” 5. On the other hand, the Ld. DR relied on the miscellaneous application filed by the Revenue. 6. On hearing rival contentions and perusing the submissions of the Ld. Counsel for the assessee and the judgments placed before us and going through the order of the Tribunal, we see no merit in the miscellaneous application filed by the Revenue and the same is dismissed. 7. In the result, miscellaneous application filed by the Revenue is dismissed. Order pronounced in the open court on 15/07/2025 Sd/- Sd/- (M BALAGANESH) (C.N. PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 15/07/2025 *Kavita Arora, Sr. P.S. Copy forwarded to: MA.No.237/Del/2021 5 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "