TaxTMI 
TaxTMI 
2021 (2) TMI 834
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....as could be culled out from the record, are that the assessee company, a Govt. of India Undertaking, deals in leasing and finance activity exclusively for Indian Railways; that the assessee company was engaged in leasing Rolling Stock assets to the Ministry of Railways on a single client relationship basis; that the assessee raises funds by way of issue of taxable/tax-free bonds and through loans from banks etc.; and that the assessee earns income from lease rent and income on deposits and investments. 3. For the year 2014-15 the assessee filed return of income on 30/9/2014 declaring a total loss of Rs. 20,41,23,99,810/- under the normal provisions and a book profit of Rs. 15,72,40,76,600/- under section 115JB of the Income Tax Act, 1961 (....
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....e that arises for our consideration in this appeal is directly and substantially dealt with and decided by a coordinate Bench of this Tribunal in assessee's own case for the assessment year 2010-11 in ITA No. 3992/Del/2014. While holding the issue in favour of the assessee, the Tribunal placed reliance on the addition of other coordinate benches in assessee's own case for the earlier assessment years, and for completeness we deem it just and necessary to refer to the relevant observations of the Tribunal in the order dated 24/7/2017, which reads as follows:- 8. We have heard the rival submissions and perused the relevant material on record. We find that the Ld. CIT-(A), following the direction of the IT AT (in short "the Tribunal"....
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.... in these guidelines for deciding the character of lease in the present case as finance lease. However, the assessee company has given this chart for opening value of lease assets in the assessment year 1997-98, which is examined by us. Similar chart for assets given on lease during A.Y. 1997-98 and in subsequent years is not furnished to us. Hence, the A.O. should verify those charts and if this condition is satisfied, all those transactions should also be accepted as finance lease transactions..............." Similarly, it is seen that this issue has been dealt by the Hon'ble ITAT Delhi Bench-C in the ITA Nos. 982 & 1714/Del/2011 for assessment year 2003-04 and 2005-06 wherein the similar directions have been given to A.O. 5.4 Sin....
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....debited and accounted in the profit and loss account." 10. Further, in para-14 of the decision, the Hon'ble High Court held that lease equalization charges should not be disallowed. The relevant finding of the unable High Court is reproduced as under: "14. A perusal of the balance-sheet and the profit and loss account for the assessment year 2000-01 reflects the said position. In the said year, the assessee had received lease rentals of Rs. 2,700.48 crores, from which lease equalization account of Rs. 142,03 crores was reduced. The paid up capital of the respondent company held by the President of India and his nominees was Rs. 232 crores. The addition of the fixed assets in the said year was Rs. 2,273 crores which is reflective as th....