ACIT, CIRCLE- 1, LTU, NEW DELHI V. INDIAN RAIL FINANCE CORP. LTD., NEW DELHI

ITA 1746/DEL/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 7192 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 5 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-09-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 12-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S KRISHNAN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI C BEN CH, NEW DELHI (THROUGH VIDEO CONFERENCING] BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND SHRI KULDIP SINGH, JUDICIAL MEM BER ITA NO. 1746/DEL/2018 [A.Y 2013-14] THE A.C.I.T VS. INDIAN RAIL FINANCE CORP. LT D CIRCLE 1, LTU EAST TOWER, UG FLOOR NEW DELHI PITAHMAH MARG, LODHI ROAD NEW DELHI PAN : AAACI 0681 C [APPELLANT] [RESPONDENT] DATE OF HEARING : 01.09.2021 DATE OF PRONOUNCEMENT : 01.09.2021 ASSESSEE BY : SHRI S. KRISHNAN, AD V REVENUE BY : MS SUNITA SINGH, CIT- DR ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER, THIS APPEAL BY THE REVENUE IS PREFERRED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX [APPEALS] - 22, NEW DELH I DATED 20.12.2017 PERTAINING TO ASSESSMENT YEAR 2013-14. 2 3. THE SOLITARY GRIEVANCE OF THE REVENUE IS THAT T HE LD. CIT(A) ERRED IN DELETING THE ADDITION OF RS. 3979.84 CRORES ON A CCOUNT OF CAPITAL RECOVERY AS LEASE INCOME MADE BY THE ASSESSING OF FICER BY TREATING THE LEASE AS OPERATIONAL LEASE AND NOT A FINANCI AL LEASE. 4. AT THE VERY OUTSET, THE LD. COUNSEL FOR THE ASSE SSEE BROUGHT TO OUR NOTICE THAT THE IMPUGNED GRIEVANCE OF THE REVEN UE HAS ALREADY BEEN DECIDED BY THE HON'BLE HIGH COURT OF DELHI IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE. 5. WE FIND THAT SIMILAR ADDITIONS WERE MADE IN A.YS 2004-05, 2006- 07 TO 2011-12 AND THE MATTER TRAVELLED UPTO THE TRI BUNAL. THE TRIBUNAL DECIDED THE ISSUE IN FAVOUR OF THE ASSESSE E AND AGAINST THE REVENUE. THE REVENUE PREFERRED APPEAL BEFORE THE H ON'BLE HIGH COURT OF DELHI FOR A.YS 2001-02, 2007-08 TO 2009-10 WITH SIMILAR GROUNDS OF APPEAL. THE HON'BLE HIGH COURT IN 362 ITR 548 HAD THE OCCASION TO CONSIDER THE FOLLOWING ISSUE: 3 WHETHER THE LEASE EQUALIZATION CHARGES CAN BE DISAL LOWED/DELETED FROM THE ASSESSEE PROFIT AND LOSS ACCOUNT FOR COMPU TING BOOK PROFIT UNDER SECTION 115JA OF THE ACT? 6. THE HON'BLE JURISDICTIONAL HIGH COURT DECIDED TH E ISSUE IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE. 7. THIS QUARREL WAS CONSIDERED BY THE HON'BLE SUPRE ME COURT IN THE CASE OF VIRTUAL SOFT SYSTEMS LTD 404 ITR 409 WHEREI N THE HON'BLE APEX COURT HELD THAT THE DECISION OF THE HON'BLE HIGH CO URT CANNOT BE INTERFERED WITH AND IN THIS JUDGMENT, THE HON'BLE S UPREME COURT AFFIRMED THE ORDER OF THE HON'BLE HIGH COURT OF DEL HI IN THE CASE OF THE ASSESSEE. 8. WE FIND THAT THE LD. CIT(A) HAS DECIDED THE APPE AL IN FAVOUR OF THE ASSESSEE BY FOLLOWING THE PRECEDENTS AS DISCUSS ED HEREINABOVE. THEREFORE, WE DO NOT FIND ANY REASON TO INTERFERE W ITH THE FINDINGS OF THE LD. CIT(A). 4 9. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I N ITA NO. 1746/DEL/2018 IS DISMISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 01.09. 2021 IN THE PRESENCE OF BOTH THE RIVAL REPRESENTATIVES. SD/- SD/- [ KULDIP SINGH ] [N.K. BILLAIYA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 01 ST SEPTEMBER, 2021 VL/ COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI 5 DATE OF DICTATION DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER