Appeal details
Counselvise Citation
[2025] 140 COUNSELVISE.COM (IT) 17081 (ITAT-DELHI)
Assessee PAN
Bench
Appeal Number
Appellant
Respondent
Appeal Type
Stay Application
Pronouncement Date
07-03-2025
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
D
Assessment Year
2022-2023
Judgement Text
" \n \nआयकर अपीलीय अिधकरण \nिदʟी पीठ “डी”, िदʟी \nŵी िवकास अव̾थी, Ɋाियक सद˟ एवं \nएम. बालागणेश, लेखाकार सद˟ क\nे समƗ \n \n IN THE INCOME TAX APPELLATE TRIBUNAL \nDELHI BENCH “D”, DELHI \nBEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & \n SHRI M. BALAGANESH, ACCOUNTANT MEMBER \n \nSA No. 104/Del/2025 \n(Arising out of ITA No. 1071/Del/2025, A.Y 2022-23) \nSubria Five Ltd, \nNew Delhi \nPAN: ABFCS4860H \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-3(1)(2), \nNew Delhi \n..... ᮧितवादी/Respondent \n \n SA No. 97/Del/2025 \n(Arising out of ITA No. 994/Del/2025, A.Y 2022-23) \n Kosi Aviation Leasing Ltd, \nC/o,. DMD Advocate, 10, \nNizamuddin, East Delhi \nPAN:AAICK6199B \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-2(1)(2), \nNew Delhi \n..... ᮧितवादी/Respondent \n \n SA No. 98/Del/2025 \n(Arising out of ITA No. 1027/Del/2025, A.Y 2022-23) \n Hoohly Aviation Leasing Ltd, \n32, Molesworth Streen, Dublin-2, \nIreland, D02Y512 \nPAN:AAFCH6609C \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-2(1)(1), \nNew Delhi \n..... ᮧितवादी/Respondent \n\n2 \n \n \nSA Nos. 97, 98, 105, 106, \n109 to 125, 133,134,137,139, \n140 to 145, 147 to 154/Del/2025 \n \n \n \n \n \n SA No. 105/Del/2025 \n(Arising out of ITA No. 1072/Del/2025, A.Y 2022-23) \n Subria Four Ltd, \nDelhi \nPAN:ABFCS4857C \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-3(1)(2), \nNew Delhi \n..... ᮧितवादी/Respondent \n \n SA No. 106/Del/2025 \n(Arising out of ITA No. 1073/Del/2025, A.Y 2022-23) \nSubria Three Ltd, \nNew Delhi \nPAN:ABFCS4856D \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-3 (1)(2), \nNew Delhi \n..... ᮧितवादी/Respondent \n \nSA No. 109/Del/2025 \n(Arising out of ITA No. 1204/Del/2025, A.Y 2022-23) \nGY Aviation Lease 1902 Co. Ltd, \nDelhi \nPAN:AAICG8296M \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-1(3)1), \nNew Delhi \n..... ᮧितवादी/Respondent \n \n \n \n \n\n3 \n \n \nSA Nos. 97, 98, 105, 106, \n109 to 125, 133,134,137,139, \n140 to 145, 147 to 154/Del/2025 \n \n \n \n \nSA No. 110/Del/2025 \n(Arising out of ITA No. 1205/Del/2025, A.Y 2022-23) \nGY Aviation Lease 1903 Co. Ltd, \nDelhi \nPAN:AAJCG6060E \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-1(3)1), \nNew Delhi \n..... ᮧितवादी/Respondent \n \n SA No. 111/Del/2025 \n(Arising out of ITA No. 1206/Del/2025, A.Y 2022-23) \nGY Aviation Lease 1904 Co. Ltd, \nDelhi \nPAN:AAICG8303K \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-1(3)1), \nNew Delhi \n..... ᮧितवादी/Respondent \n \nSA No. 112/Del/2025 \n(Arising out of ITA No. 1207/Del/2025, A.Y 2022-23) \nGY Aviation Lease 1905 Co. Ltd, \nDelhi \nPAN:AAICG8302J \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-1(3)1), \nNew Delhi \n..... ᮧितवादी/Respondent \n \n \n \n \n \n \n \n \n \n \n\n4 \n \n \nSA Nos. 97, 98, 105, 106, \n109 to 125, 133,134,137,139, \n140 to 145, 147 to 154/Del/2025 \n \n \n \n \n SA No. 113/Del/2025 \n(Arising out of ITA No. 1070/Del/2025, A.Y 2022-23) \nLuni Aviation Leasing Ltd, \nNew Delhi \nPAN:AAECL5180H \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-2(2)(1), \nNew Delhi \n..... ᮧितवादी/Respondent \n \n SA No. 114/Del/2025 \n(Arising out of ITA No. 1157/Del/2025, A.Y 2022-23) \nMahi Aviation Leasing Ltd, \nDelhi \nPAN:AAOCM3126A \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-2(2)(1), \nNew Delhi \n..... ᮧितवादी/Respondent \n \n SA No. 115/Del/2025 \n(Arising out of ITA No. 1156/Del/2025, A.Y 2022-23) \n Padma Aviation Leasing Ltd, \nDelhi \nPAN:AALCP7901M \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-2(2)(1), \nNew Delhi \n..... ᮧितवादी/Respondent \n \n \n \n\n5 \n \n \nSA Nos. 97, 98, 105, 106, \n109 to 125, 133,134,137,139, \n140 to 145, 147 to 154/Del/2025 \n \n \n \n \n SA No. 116/Del/2025 \n(Arising out of ITA No. 1158/Del/2025, A.Y 2022-23) \nDAE9 Ireland Ltd, \nDelhi \nPAN:AAJCD0296K \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-2(2)(1), \nNew Delhi \n..... ᮧितवादी/Respondent \n \n \nSA No. 117/Del/2025 \n(Arising out of ITA No. 1161/Del/2025, A.Y 2022-23) \nSubria Six Ltd, \nDelhi \nPAN:ABFCS4858P \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-3(1)(2), \nNew Delhi \n..... ᮧितवादी/Respondent \n \nSA No. 118/Del/2025 \n(Arising out of ITA No. 1203/Del/2025, A.Y 2022-23) \nAPTREE AVIATION TRADING 2 CO LTD, \nIRELAND \nPAN:AATCA6036A \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-2(2)(1), \nNew Delhi \n..... ᮧितवादी/Respondent \n \n \n \n\n6 \n \n \nSA Nos. 97, 98, 105, 106, \n109 to 125, 133,134,137,139, \n140 to 145, 147 to 154/Del/2025 \n \n \n \n \n SA No. 119/Del/2025 \n(Arising out of ITA No. 1199/Del/2025, A.Y 2022-23) \nLunar Aircraft Trading Company 10, \nDelhi \nPAN:AAFCL1872M \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-2(2)(1), \nNew Delhi \n..... ᮧितवादी/Respondent \n \n SA No. 120/Del/2025 \n(Arising out of ITA No. 1198/Del/2025, A.Y 2022-23) \nLunar Aircraft Trading Company 7, \nDelhi \nPAN:AAFCL1871J \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-2(2)(1), \nNew Delhi \n..... ᮧितवादी/Respondent \n \n SA No. 121/Del/2025 \n(Arising out of ITA No. 1208/Del/2025, A.Y 2022-23) \nGY Aviation Lease 1906 Co. Ltd, \nDelhi \nPAN:AAICG8301M \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-1(3)1), \nNew Delhi \n..... ᮧितवादी/Respondent \n \n \n \n\n7 \n \n \nSA Nos. 97, 98, 105, 106, \n109 to 125, 133,134,137,139, \n140 to 145, 147 to 154/Del/2025 \n \n \n \n \nSA No. 122/Del/2025 \n(Arising out of ITA No. 1209/Del/2025, A.Y 2022-23) \nGY Aviation Lease 1907 Co. Ltd, \nDelhi \nPAN:AAICG8300L \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-1(3)1), \nNew Delhi \n..... ᮧितवादी/Respondent \n \nSA No. 123/Del/2025 \n(Arising out of ITA No. 1210/Del/2025, A.Y 2022-23) \nGY Aviation Lease 1908 Co. Ltd, \nDelhi \nPAN:AAICG8298F \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-1(3)1), \nNew Delhi \n..... ᮧितवादी/Respondent \n \n \nSA No. 124/Del/2025 \n(Arising out of ITA No. 1211/Del/2025, A.Y 2022-23) \nGY Aviation Lease 1909 Co. Ltd, \nDelhi \nPAN:AAJCG6087H \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-1(3)1), \nNew Delhi \n..... ᮧितवादी/Respondent \n \n \n \n\n8 \n \n \nSA Nos. 97, 98, 105, 106, \n109 to 125, 133,134,137,139, \n140 to 145, 147 to 154/Del/2025 \n \n \n \n \n \nSA No. 125/Del/2025 \n(Arising out of ITA No. 1202/Del/2025, A.Y 2022-23) \nSubria Two Ltd, \nDelhi \nPAN:ABFCS4861G \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-3(1)(2), \nNew Delhi \n..... ᮧितवादी/Respondent \n \nSA No. 133/Del/2025 \n(Arising out of ITA No. 1201/Del/2025, A.Y 2022-23) \n AWAS 2908 LLC, \nIreland \nPAN:AATCA5015D \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-1(1)1), \nNew Delhi \n..... ᮧितवादी/Respondent \n \nSA No. 134/Del/2025 \n(Arising out of ITA No. 1159/Del/2025, A.Y 2022-23) \nGY Aviation Lease 1901 Co. Ltd, \nDelhi \nPAN:AAICG8399E \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-1(3)1), \nNew Delhi \n..... ᮧितवादी/Respondent \n \n \n \n\n9 \n \n \nSA Nos. 97, 98, 105, 106, \n109 to 125, 133,134,137,139, \n140 to 145, 147 to 154/Del/2025 \n \n \n \n \n \nSA No. 137/Del/2025 \n(Arising out of ITA No. 1160/Del/2025, A.Y 2022-23) \nAhar Aviation Leasing Ltd, \nDelhi, \nPAN:AAUCA7980N \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-1(1)1), \nNew Delhi \n..... ᮧितवादी/Respondent \n \nSA No. 139/Del/2025 \n(Arising out of ITA No. 1270/Del/2025, A.Y 2022-23) \nWhite Oak Aviation (AOE2) Ltd, \nIreland \nPAN:AADCW0290N \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-3(1)1), \nNew Delhi \n..... ᮧितवादी/Respondent \n \nSA No. 140/Del/2025 \n(Arising out of ITA No. 1271/Del/2025, A.Y 2022-23) \nGY Aviation Lease 101 Co. Ltd, \nIreland \nPAN:AAHCG8986F \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-1(3)1), \nNew Delhi \n..... ᮧितवादी/Respondent \n \n \n \n\n10 \n \n \nSA Nos. 97, 98, 105, 106, \n109 to 125, 133,134,137,139, \n140 to 145, 147 to 154/Del/2025 \n \n \n \n \n \nSA No. 141/Del/2025 \n(Arising out of ITA No. 1272/Del/2025, A.Y 2022-23) \nGY Aviation Lease 1301 Co. Ltd, \nIreland \nPAN:AAICG8297L \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-1(3)1), \nNew Delhi \n..... ᮧितवादी/Respondent \n \nSA No. 142/Del/2025 \n(Arising out of ITA No. 1273/Del/2025, A.Y 2022-23) \nGY Aviation Lease 1201 Co. Ltd, \nIreland \nPAN:AAICG3574G \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-1(3)1), \nNew Delhi \n..... ᮧितवादी/Respondent \n \nSA No. 143/Del/2025 \n(Arising out of ITA No. 1274/Del/2025, A.Y 2022-23) \nGY Aviation Lease 1205 Co. Ltd, \nIreland \nPAN: AAICG8295J \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-1(3)1), \nNew Delhi \n..... ᮧितवादी/Respondent \n \n \n \n\n11 \n \n \nSA Nos. 97, 98, 105, 106, \n109 to 125, 133,134,137,139, \n140 to 145, 147 to 154/Del/2025 \n \n \n \n \nSA No. 144/Del/2025 \n(Arising out of ITA No. 1275/Del/2025, A.Y 2022-23) \n AWAS Aviation Leasing (4294) Ltd, \nIreland \nPAN:AATCA4988M \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-1(1)1), \nNew Delhi \n..... ᮧितवादी/Respondent \n \nSA No. 145/Del/2025 \n(Arising out of ITA No. 1276/Del/2025, A.Y 2022-23) \nAWAS Aviation Leasing (4433) Ltd, \nIreland \nPAN:AATCA4983A \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-1(1)1), \nNew Delhi \n..... ᮧितवादी/Respondent \n \nSA No. 147/Del/2025 \n(Arising out of ITA No. 1286/Del/2025, A.Y 2022-23) \nAWAS 5158 Ireland Ltd, \nIreland \nPAN:AATCA5018Q \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-1(1)1), \nNew Delhi \n..... ᮧितवादी/Respondent \n \n \n \n\n12 \n \n \nSA Nos. 97, 98, 105, 106, \n109 to 125, 133,134,137,139, \n140 to 145, 147 to 154/Del/2025 \n \n \n \n \nSA No. 148/Del/2025 \n(Arising out of ITA No. 1288/Del/2025, A.Y 2022-23) \nRavi Aviation Leasing Ltd, \nIreland \nPAN:AAKCR8052N \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-3(1)1), \nNew Delhi \n..... ᮧितवादी/Respondent \nSA No. 149/Del/2025 \n(Arising out of ITA No. 1289/Del/2025, A.Y 2022-23) \nGandak Aviation Leasing Ltd, \nIreland \nPAN:AAICG8528L \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-1(3)1), \nNew Delhi \n..... ᮧितवादी/Respondent \n \nSA No. 150/Del/2025 \n(Arising out of ITA No. 1290/Del/2025, A.Y 2022-23) \nGilead Aviation Ireland 1 Ltd, \nIreland \nPAN:AAJCG4985A \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-1(3)1), \nNew Delhi \n..... ᮧितवादी/Respondent \n \n \n \n\n13 \n \n \nSA Nos. 97, 98, 105, 106, \n109 to 125, 133,134,137,139, \n140 to 145, 147 to 154/Del/2025 \n \n \n \n \nSA No. 151/Del/2025 \n(Arising out of ITA No. 1291/Del/2025, A.Y 2022-23) \nBereach Aviation Leasing Ltd, \nIreland \nPAN:AAJCB6404F \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-1(1)(2), \nNew Delhi \n..... ᮧितवादी/Respondent \n \n SA No. 152/Del/2025 \n(Arising out of ITA No. 1292/Del/2025, A.Y 2022-23) \nDAE 8 Ireland Ltd, \nDelhi \nPAN:AAJCD0298H \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-2(2)(1), \nNew Delhi \n..... ᮧितवादी/Respondent \n \nSA No. 153/Del/2025 \n(Arising out of ITA No. 1293/Del/2025, A.Y 2022-23) \nSOTA Aviation Leasing Ltd, \nIreland \nPAN:ABFCS4862F \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-3(1)(2), \nNew Delhi \n..... ᮧितवादी/Respondent \n \n \n \n\n14 \n \n \nSA Nos. 97, 98, 105, 106, \n109 to 125, 133,134,137,139, \n140 to 145, 147 to 154/Del/2025 \n \n \n \n \nSA No. 154/Del/2025 \n(Arising out of ITA No. 1294/Del/2025, A.Y 2022-23) \nGAL MSN 4533 & 4954, \nIreland \nPAN:AAICG8529M \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-1(3)1), \nNew Delhi \n..... ᮧितवादी/Respondent \n \nSA No. 155/Del/2025 \n(Arising out of ITA No. 1295/Del/2025, A.Y 2022-23) \nAWAS 3 Ireland Ltd, \nIreland \nPAN:AAWCA4224D \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-1(1)1), \nNew Delhi \n..... ᮧितवादी/Respondent \n \nSA No. 156/Del/2025 \n(Arising out of ITA No. 1296/Del/2025, A.Y 2022-23) \nAWAS 4 Ireland Ltd, \nIreland \nPAN:AAWCA4223E \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-1(1)1), \nNew Delhi \n..... ᮧितवादी/Respondent \n \n \n \n \n\n15 \n \n \nSA Nos. 97, 98, 105, 106, \n109 to 125, 133,134,137,139, \n140 to 145, 147 to 154/Del/2025 \n \n \n \n \n \nSA No. 158/Del/2025 \n(Arising out of ITA No. 1350/Del/2025, A.Y 2022-23) \nVertical Aviation No. 1 Ltd, \nCRO: 562519, \nDolmen House, 3rd Floor, 4 Earlsfort \nTerrace, Dublin D 02 E024 \nPAN:AAFCV8726N \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-3(1)(1), \nNew Delhi \n..... ᮧितवादी/Respondent \n \n \n \nSA No. 159/Del/2025 \n(Arising out of ITA No. 1351/Del/2025, A.Y 2022-23) \nThe Milestone Aviation Asset Holding \nGroup No. 25 Ltd, \nIreland \nPAN:AAHCT8009N \n \n \n \n...... आवेदक/Applicant \nबनाम Vs. \n \nACIT, \nInternational Taxation, \nCircle-3(1)(1), \nNew Delhi \n..... ᮧितवादी/Respondent \n \nआवेदक/Applicant \n \n: Shri Sachit Jolly, Senior Advocate with \nMs. Anuradha Dutt, Ms. Rashi Khanna, \nMs. Disha Jham, Ms. Soumya Singh, \nS/Shri Devansh Jain, Aditya Rathore, Abhudaya \nShankar Bajpai, Hardeep Singh Chawla, Advocates \n \n \n \nŮितवादीȪारा/Respondent by : Shri Om Prakash, Sr. DR \n \nसुनवाई कᳱ ितिथ/ Date of hearing \n \n: \n07/03/2025 \n \nघोषणा कᳱ ितिथ/ Date of pronouncement \n: \n07/03/2025 \n \n \n \n\n16 \n \n \nSA Nos. 97, 98, 105, 106, \n109 to 125, 133,134,137,139, \n140 to 145, 147 to 154/Del/2025 \n \n \n \n \nआदेश/ORDER \nPER VIKAS AWASTHY, JM: \n \n These bunch of 44 Stay Applications by different assessees were listed in \ndifferent Delhi Benches. The Hon’ble Vice President, Delhi Zone vide order dated \n07.03.2025 on request for consolidation by the Counsel for applicants, consoliated the \nStay Applications before one Bench. These Stay Applications in the case of respective \nassessee’s are taken up together as the issues in the respective appeals germinate from \nidentical set of facts and the additions in the respective appeals for AY 2022-23 are \nidentical. \n2. \nShri Sachit Jolly, Senior Advocate representing the applicants/assessees submits \nthat since these bunch of 44 Stay Applications have identical set of facts, SA No. \n104/Del/2025 be taken up as a lead case, hence, the facts are narrated from said Stay \nApplication. The ld. Counsel submits that all the applicants/assessees are based in \nIreland and are engaged in the business of leasing Aircrafts. Thus, the \nassessee(s)/applicant(s) are tax residents of Ireland. The applicants in the instant set of \napplications have leased aircrafts to a single entity in India i.e. Inter Globe Aviation Ltd. \n(in short ‘Indigo’) on Dry Operating Lease Basis for a period ranging from 72 months to \n120 months. The lease agreement dated 03.08.2015 entered into between the \napplicant (in lead case) and Indigo is for leasing of an Airbus A320-271N on Dry \nOperating Lease Basis for a period of 72 months staring from 28.09.2016, which was \nsubsequently amended vide amendment and extension agreements dated 21.09.2022 \nand 24.01.2023 extending the lease to 120 months i.e. till 27.09.2026. Identical lease \nagreements have been entered into by the respective assessee(s)/applicant(s) with \n\n17 \n \n \nSA Nos. 97, 98, 105, 106, \n109 to 125, 133,134,137,139, \n140 to 145, 147 to 154/Del/2025 \n \n \n \n \nIndigo. Pursuant, to said lease agreement the applicant has received basic rental of \nRs.36,51,96,550/-(USD 4,848,600) during the assessment year under consideration. The \nlease rental income of the applicant is not taxable in India under India-Ireland Direct \nTax Avoidance Agreement (in short DTAA). Accordingly, the assessee/applicant filed \nreturn of income for the impugned assessment year declaring taxable income as NIL. \nThe assessee/applicant in the return of income filed in Ireland has claimed depreciation \non asset i.e. Aircraft and has also offered to tax its income from lease rental. Since, the \nassessee is having negative income (loss), the assessee was not required to pay any tax \nduring the relevant period in the country of residence either. \n3. \nIn the impugned assessment year, the Assessing Officer (AO) has made addition \nin the hands of the assessee/applicant on two counts; \n(i) Re-characterization of Dry Operating Lease between the assessee and Indigo as \nFinance Lease, \n(ii) Applying Principal Purpose Test (PPT) holding that after insertion of Multilateral \nConvention to Implement Tax Treaty Related Measures to Prevent Base Erosion and \nProfit Shifting (MLI), TRC cannot be considered as sufficient basis to claim treaty \nbenefits. \n4. \nIn so far as the first issue, the ld. Counsel inter alia submits that the Special \nBench of Tribunal in the case of Inter Globe Aviations Ltd. vs. Additional Commissioner \nof Income Tax reported as 131 taxmann.com 98 (Delhi) 2021 TIOL 1607 ITAT Delhi (SB) \ni.e. in the case of Indigo, Lessee has been held in nature of Operating Lease and has \ndiscarded the stand of Revenue to re-characterize it as Financial Lease. Once the nature \n\n18 \n \n \nSA Nos. 97, 98, 105, 106, \n109 to 125, 133,134,137,139, \n140 to 145, 147 to 154/Del/2025 \n \n \n \n \nof lease agreement has been held to be Operating Lease in the hands of lessee, the said \nlease agreement cannot be re-characterized as Financial Lease in the hands of lessor. If \nthe position has been accepted in the hands of the lessee, the Revenue cannot take a \ndivergent view in the hands of the lessors i.e. the applicants herein. Indigo has been \nremitting lease rentals to lessors of Aircrafts base in Ireland since 2007 without \ndeduction of tax at source, taking benefit of section 10(15A) of the Act and in some \ncases Article 12 of India-Ireland DTAA. The nature of ‘lease rent’ has already been \nexamined in the case of Indigo for AY 2007-08 till AY 2022-23. The AO while making \nassessment in the case of Indigo accepts the fact that Indigo is not the owner of \nAircrafts, the ownership is with the lessor and the depreciation on aircrafts is claimed \nby lessor. Whereas, in the case of lessors i.e. applicants, the DRP/AO have taken \ndiametrically opposite stance asserting that Indigo is the owner of aircrafts. \n5. \nIn respect of issue no. 2, the ld. Counsel submits that the AO and the DRP have \nwrongly placed reliance on MLI to deny the benefit of India-Ireland DTAA. He asserted \nthat the AO and the DRP have failed to take note of the fact that no amendment to \nIndia-Ireland DTAA has been notified u/s. 90(1) of the Income Tax Act,1961(hereinafter \nreferred to as ‘the Act’) in this regard. Till the time a specific notification is made u/s. 90 \nof the Act and amendment is carried out in India-Ireland DTAA, it cannot be said that \nIndia-Ireland DTAA carries MLI/PPT clause. Merely for the reason that DTAA with other \nstate which is member of OECD viz. Switzerland/Netherlands/France have such \nprovision, would not mean that the same would apply to India-Ireland DTAA. To \nsupport his contention, he placed reliance on the decision of Hon’ble Supreme Court of \nIndia in the case of Assessing Officer vs. Nestle SA reported as 458 ITR 756. \n\n19 \n \n \nSA Nos. 97, 98, 105, 106, \n109 to 125, 133,134,137,139, \n140 to 145, 147 to 154/Del/2025 \n \n \n \n \n6. \nThe ld. Counsel for the assessee contended that both issues on which additions \nhave been made by the assessee are squarely covered in favour of the assesee by the \norder of Special Bench of Tribunal and the decision of Hon’ble Supreme Court of India, \nrespectively. Hence, the additions made by the AO in respect of all the \nassessee(s)/applicant(s) would not sustain. \n7. \nPer contra, Shri Om Prakash representing the department vehemently opposed \nthe Stay Applications and prayed for dismissing the same. The ld. DR contended that if \nat all Stay Application is to be allowed, the same may be allowed subject to \nassessee(s)/applicant(s) paying tax equal to 20% of the outstanding demand. However, \nin so far as the facts narrated by ld. Counsel are concerned, the ld. DR endorsed that \nfacts in the case of all the assessee(s)/applicant(s) are identical. \n8. \nWe have heard the submissions made by rival sides. Both sides are unanimous in \nstating that facts germane to the issues raised in all appeals resulting in demand in \nassessment year 2022-23 are identical. Thus, the Stay Applications in respect of all the \nassessee(s)/applicant(s) are decided by this common order. \n9. \nThe additions in the case of respective assessees is primarily on two counts i.e.re-\ncharacterization of nature of lease i.e. from operating to financial by the AO. It has \nbeen \ncontended \nthat \nlease \nagreement \nentered \ninto \nby \nthe \nrespective \nassessee(s)/applicant(s) with Inter Globe Aviation Ltd./Indigo are identical and carry \nidentical covenants. All lease agreements are for leasing aircrafts on Dry Operating \nLease Basis and at the end of lease period the aircrafts are to be returned back by the \nlessee to the lessor. It is further contended that in the case of Inter Globe Aviation Ltd. \n\n20 \n \n \nSA Nos. 97, 98, 105, 106, \n109 to 125, 133,134,137,139, \n140 to 145, 147 to 154/Del/2025 \n \n \n \n \ni.e. lessee, Special Bench of Tribunal had held that the lease agreement between \nlessors and the lessee is the nature of operating lease. In so far as the issue of MLI, it \nhas been contended that no amendment has been made in India-Ireland DTAA to that \neffect and unless necessary amendment is made u/s. 90 of the Act, the \nassessee(s)/applicant(s) cannot be denied the Treaty benefit. To substantiate this \ncontention reliance is placed on the decision rendered by Hon’ble Apex Court in the \ncase of Nestle SA (supra). Prima facie, we are of considered view that the \nassessee(s)/applicant(s) \nhave \nstrong \ncase \nin \ntheir \nfavour. \nHence, \nthe \nassessee(s)/applicant(s) deserve the benefit of stay on recovery of outstanding demand \nin the impugned assessment year. The recovery of outstanding demand is thus stayed \nfor a period of 180 days from the date of this order or till the disposal of appeal, \nwhichever is earlier. \n10. \nThe Registry is granted to list these bunch of 42 appeals on 08.05.2025. Since, \nthe date of hearing of appeals has been announced in the open court, issuance of \nseparate notice of hearing to the parties is dispensed with. \n11. \nThe assessee if so advised, may file paper book on or before the date of hearing \nof appeals with an advance copy to the opposite side, in accordance with ITAT Rules. \nThe Revenue if so desires to seek any report from the AO in these appeals, may do so, \nbefore the date of hearing. \n12. \nSince, a clear date of hearing has been given for hearing of appeals, both sides \nare refrained from seeking adjournment. In case adjournment is sought by the \n\n21 \n \n \nSA Nos. 97, 98, 105, 106, \n109 to 125, 133,134,137,139, \n140 to 145, 147 to 154/Del/2025 \n \n \n \n \nassessee(s)/applicant(s), the benefit of stay granted shall be deemed to be withdrawn \nforthwith. \n13. \nBefore parting, we may point here that any observation in the order may not be \nconstrued in any manner as comments on merits of the issue in appeal. The appeal \norder may be passed on merits, uninfluenced by any observations whatsoever in this \norder by us. \n14. \nIn the result, Stay Applications are allowed, in the terms aforesaid. \nOrder pronounced in the open court on Friday the 07th day of March, 2025. \nSd/- \n \n \n \n \n Sd/- \n (M.BALAGANESH) (VIKAS AWASTHY) \nलेखाकार सद˟/ACCOUNTANT MEMBER Ɋाियक सद˟/JUDICIAL MEMBER \n \n \nिदʟी / Delhi, ᳰदनांक/Dated 07/03/2025 \n \nNV/- \n \nᮧितिलिप अᮕेिषतCopy of the Order forwarded to : \n1. \nअपीलाथᱮ/The Appellant , \n2. \nᮧितवादी/ The Respondent. \n3. \nThe PCIT \n4. \nिवभागीय ᮧितिनिध, आय.अपी.अिध., िदʟी /DR, ITAT, िदʟी \n5. \nगाडᭅ फाइल/Guard file. \n \n \n \n\n22 \n \n \nSA Nos. 97, 98, 105, 106, \n109 to 125, 133,134,137,139, \n140 to 145, 147 to 154/Del/2025 \n \n \n \n \n \n \n \n BY ORDER, \n \n \n //True Copy// \n \n(Dy./Asstt. Registrar) ITAT, DELHI \n \n \n"
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