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2012 (7) TMI 524 - HC - Income TaxRejection of application for approval u/s 10(15A) - the aircrafts for which lease Agreements were signed were not existing on the date of the agreement - Held that:- On reading of Section 10 (15A) it is apparent to us that for this Section, an Indian company engaged in the business of operation of aircrafts should have acquired aircraft(s) on lease under an agreement - the twin conditions; that the agreement should have been entered into on or before 1st April, 2007 and there should be acquisition of aircraft under the lease before the said date, have to be satisfied. If the two conditions are not satisfied, benefit under the said Section cannot be granted. In the present case, there was no lease but only a possibility or an expectancy as the property or goods in question were not in existence on the date of the so called agreements. The agreements cannot be treated as leases but only as agreements for leases which will/may operate in future. This will not satisfy the need and requirements of Section 10(15A). The use of the word “lease” is significant and signifies transfer of rights by the lessor to the lessee in praesenti, i.e., on or before 1st April, 2007, which is not possible unless the aircraft is in existence - A contract for a lease is to be distinguished from a lease because lease is actually a conveyance of interest in the goods/property, whereas a contract for lease is merely an agreement that such conveyance shall be entered into or begin/operationalize on a future date - writ petition dismissed - against assessee.
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