THE COMMISSIONER OF INCOME TAX DELHI II vs. MUSSOORIE TRADING CO. P. LTD.

ITA - 1305 / 2007HC Delhi17 January 20081 pages

For Petitioner: MR.R.D.JOLLY

AI SummaryDismissed

What did the High Court hold?

The High Court of Delhi dismissed the appeal filed by the Revenue. The Court's decision was based on its prior ruling in Commissioner of Income Tax vs. Vikram Aditya and Associates P. Ltd. (2006) 287 ITR 268, which dealt with an identical issue of dividend stripping. Additionally, the Court took note of the Supreme Court's dismissal of an SLP on a similar issue in Commissioner of Income Tax v. Prudent Advisory on January 15, 2008. By following its own precedent and the Supreme Court's action, the High Court found no merit in the Revenue's appeal. The ratio decidendi is that where an identical issue has been decided by the High Court and a similar issue has been dismissed by the Supreme Court, the High Court will follow its own binding precedent. The operative direction was to dismiss the appeal.

What were the facts?

The Revenue, Commissioner of Income Tax Delhi II, is aggrieved by an order dated February 15, 2007, passed by the Income Tax Appellate Tribunal (ITAT), Delhi Bench F, in ITA No. 5693/D/2004. This order pertains to the assessment year 2001-2002. The core issue raised by the Revenue concerns dividend stripping. The High Court of Delhi notes that it has previously decided an identical issue in the case of Commissioner of Income Tax vs. Vikram Aditya and Associates P. Ltd. (2006) 287 ITR 268. Furthermore, the Court was informed that the Supreme Court had dismissed a Special Leave Petition (SLP) on a similar issue in Commissioner of Income Tax v. Prudent Advisory on January 15, 2008.

What were the issues?

1. Whether the Income Tax Appellate Tribunal erred in its decision regarding the issue of dividend stripping for the assessment year 2001-2002, as challenged by the Revenue. Assessee's Contentions: The judgment does not record specific contentions made by the assessee, Mussoorie Trading Co. P. Ltd., before the High Court. However, it is implied that the assessee would have supported the ITAT's order. Revenue's Contentions: The Revenue, Commissioner of Income Tax Delhi II, is aggrieved by the ITAT's order concerning dividend stripping. The Revenue's appeal is based on the premise that the ITAT's decision on this matter was incorrect. The Revenue's argument is implicitly against the finding of the ITAT, which is not detailed in this High Court order.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF DELHI AT NEW DELHI . ITA 1305/2007 . THE COMMISSIONER OF INCOME TAX DELHI II ..... Appellant Through:R.D.Jolly, Adv. versus . MUSSOORIE TRADING CO. P. LTD. ..... Respondent Through CORAM: HON'BLE MR. JUSTICE MADAN B. LOKUR HON'BLE MR. JUSTICE V.B. GUPTA . O R D E R 17.01.2008 . The Revenue is aggrieved by an order dated 15th February, 2007 passed by Income Tax Appellate Tribunal, Delhi Bench F in ITA No.5693/D/2004 relevant for the assessment year 2001-2002. The Appellant has raised an issue pertaining to dividend stripping. This Court has already decided an identical issue in Commissioner of Income Tax vs. Vikram Aditya and Associates P. Ltd. (2006) 287 ITR 268. ITA 1305/2007 Page 1 of 2 We have been given to understand from the Internet that an SLP on a similar issue has recently been dismissed by the Supreme Court in CC No.13518/2007 in Commissioner of Income Tax v. Prudent Advisory on 15th January, 2008. Following our decisions in Vikram Aditya (supra) case, we dismiss this appeal. . . MADAN B. LOKUR,J . . V.B. GUPTA, J JANUARY 17, 2008 Bisht . . . ITA 1305/2007 Page 2 of 2

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