TMI Blog2020 (2) TMI 723X X X X Extracts X X X X X X X X Extracts X X X X ..... [ 2018 (4) TMI 1472 - SUPREME COURT] subsequent to adjudication by Tribunal. The bench while passing order for AY 1999-2000, in his wisdom, thought fit to follow the consistent view taken by the Tribunal in earlier years and restored the matter back to the file of Ld. AO for fresh adjudication with a view to enable the revenue to take consistent stand in the matter. Therefore, the plea as urged by the assessee in the application, in this regard, could not be accepted. Hence, finding no mistake apparent from record as envisaged by the provisions of Sec. 254(2), we decline to interfere in the order, on this point. Claim of depreciation made on leased assets - It is quite evident that the claim made by the assessee has been accepted and the depreciation of leased assets have been allowed since the lease transactions have been accepted to be genuine by the Tribunal in earlier years. We find that no elaborate finding has been rendered by the bench on the factual aspect whether the transactions were in the nature of finance lease or operating lease. The main issue was whether the transactions were genuine in nature on non-genuine in nature. Upon perusal of CIT(A) order for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n tabulated in the cause-title. Since the grievance of the assessee is common, all the applications were heard together and are now being disposed-off by way of consolidated order for the sake of convenience and brevity. 2. Since the order of Tribunal for AYs 1999-00 to 2001-02 is common order, we first take up applications filed for these years. 3.1 The application MA No. 478/Mum/2018 for AY 1999-2000 has been preferred against Tribunal s order dated 17/12/2014 in Assessee s appeal ITA No.6063/Mum/2002. We have perused the contents of the petition. It has been submitted in the application that the assessee raised a claim regarding deduction of lease equalization on the strength of various judicial pronouncements wherein it was held that the assessee which was engaged in the business of leases and recognizes income as per Accounting Standard-19 (AS-19) as prescribed by the Institute of Chartered Accountants of India, the assessee would be entitled for deduction of lease equalization. The assessee had claimed that the difference between capital recovery and the book depreciation, being the lease equalization should be allowed as deduction. This aspect has been dealt by AS-19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2011. We have gone through the order passed by the Tribunal for AY 1998-99, wherein the Tribunal has extracted the observations made by the co-ordinate bench in the order passed for AY 1994-95 to 1997-98, wherein the Tribunal has explained the concept of Lease equalization charge and accordingly restored the matter back to the file of the assessing officer for carrying out fresh examination. Consistent with the view taken by the Tribunal in the earlier years, we set aside the orders of Ld CIT(A) in all the three years under consideration and restore the same to the file of the assessing officer with the direction to decide the issue afresh in the light of discussions made by the Tribunal in AY 1994-95 to 1997-98. As evident from the order, the Hon ble bench has merely followed the consistent view taken by the Tribunal in earlier years and restored the matter back for fresh adjudication to the file of Ld.AO on identical lines. It is quite discernible that the order of Ld. first appellate authority, on the issue, has been set aside and Ld. AO has been directed to decide the issue afresh in accordance with directions issued by Tribunal in AYs 1994-95 to 1997-98. It is also obser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... um/2002. The assessee seek replacement of word operating as mentioned in para-12 of the order by the word finance since as per the application, the assessee was engaged in finance lease. 4.2 The point urged by the assessee find place in para-12 of the order, which read as under: - 12. Next common issue urged by the revenue in all the three years is that the claim of depreciation made on leased assets. In AY 1996-97, the co-ordinate bench of Tribunal has allowed the claim of depreciation on leased assets by following the decision of Hon ble Supreme Court in the case of ICDS Limited (29 Taxman.com 129). There should not be any dispute that the assessee is entitled to depreciation, if it has leased out the assets under operating lease. The AO had taken the view that the lease transactions entered into by the assessee were not genuine lease transactions. However, the Ld CIT(A) has come to the conclusion that the lease transactions were genuine in nature and he held so by placing reliance on the decision rendered in the preceding years. It was submitted that the lease transactions has been accepted by the Tribunal in the earlier years and accordingly depreciation was allowe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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