ADDL. CIT, SPECIAL RANGE- 4, NEW DELHI vs. INTERGLOBE AVIATION LTD., NEW DELHI

ITA 413/DEL/2018Status: DisposedITAT Delhi29 October 2021AY 2014-1567 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that credits received against engine purchases were capital in nature, aligning with a Special Bench decision. Consequently, lease rental payments amortized against these credits were also considered capital expenditure and not disallowable. The issue of supplementary lease rent disallowance was also decided in favor of the assessee based on the Special Bench ruling.

What were the facts?

The assessee, InterGlobe Aviation Ltd., appealed against disallowances made by the Assessing Officer and CIT(A) concerning lease rental payments and supplementary lease rent for non-deduction of TDS. The primary dispute involved whether certain credits received against engine purchases were capital or revenue in nature.

What were the issues?

Whether credits received against engine purchases are capital or revenue receipts, and whether lease rental payments and supplementary lease rents are disallowable for non-deduction of TDS.

Which sections of the Income-tax Act were involved?

Section 37(1),Section 40(a)(i),Section 28(iv)

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Income Tax Appellate Tribunal, [ DELHI BENCH “C”: NEW DELHI ]

Before: MS SUCHITRA KAMBLE & SHRI PRASHANT MAHARISHI

For Appellant: Shri Tarandeep Singh, Adv.; &, Shri Pulkit Verma, Advocate
For Respondent: Ms. Sunita Singh [CIT] – D.R.;
Hearing: 15/09/2021Pronounced: 29/10/2021

PER PRASHANT MAHARISHI, A. M.

1.

This is the bunch of 5 appeals concerning the same assessee wherein for assessment year 13 – 14 and 14 – 15 cross appeals have been filed by the assessee and the revenue and further for assessment year 2015 – 16 assessee has filed appeal wherein identical issue is involved. As

The order continues below.

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