Criteria for treating a lease as ‘operational lease’ or ‘financial lease’

Last updated: 11 September 2021

Court :
ITAT Delhi

Brief :
This appeal by the revenue is preferred against the order of the Commissioner of Income Tax [Appeals] - 22, New Delhi dated 20.12.2017 pertaining to Assessment Year 2013-14.

Citation :
ITA No. 1746/DEL/2018 [A.Y 2013-14]

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘C’ BENCH,
NEW DELHI (THROUGH VIDEO CONFERENCING]
BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND
SHRI KULDIP SINGH, JUDICIAL MEMBER
ITA No. 1746/DEL/2018 [A.Y 2013-14]

The A.C.I.T
Circle 1, LTU
New Delhi

Vs.

Indian Rail Finance Corp. Ltd

East Tower, UG Floor

Pitahmah Marg, Lodhi Road
New Delhi

PAN : AAACI 0681 C

Date of Hearing : 01.09.2021
Date of Pronouncement : 01.09.2021
Assessee by : Shri S. Krishnan, Adv
Revenue by : Ms Sunita Singh, CIT- DR
ORDER

This appeal by the revenue is preferred against the order of the Commissioner of Income Tax [Appeals] - 22, New Delhi dated 20.12.2017 pertaining to Assessment Year 2013-14.

2. We find that similar additions were made in A.Ys 2004-05, 2006- 07 to 2011-12 and the matter travelled upto the Tribunal. The Tribunal decided the issue in favour of the assessee and against the Revenue. The revenue preferred appeal before the Hon'ble High Court of Delhi for A.Ys 2001-02, 2007-08 to 2009-10 with similar grounds of appeal.

3.The Hon'ble Jurisdictional High Court decided the issue in favour of the assessee and against the Revenue.

4. In the result, the appeal filed by the Revenue in 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.

Please find attached the enclosed file for the full judgement