COMMISSIONER OF INCOME TAX-I vs. CREATIVE TRAVELS (P) LTD.

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ITA - 54 / 2013HC Delhi01 February 20131 pages
For Petitioner: SANJEEV RAJPAL
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the Revenue's appeal. The Court noted that the issue in the present appeal for assessment year 2009-10 was identical to the issues decided in previous assessment years. Specifically, the ITAT had deleted the addition of ₹68,06,284 made by the AO on account of disallowance of commission paid to the assessee's directors. The Court observed that the ITAT had taken the same stand in earlier years (2002-03, 2005-06, 2007-08, and 2008-09). Crucially, the Revenue had filed an appeal (ITA 389/2012) concerning the assessment year 2008-09, which had been dismissed by the High Court on July 6, 2012. Given that the issue was covered against the Revenue by the prior dismissal of its appeal, the present appeal was also dismissed. The operative direction was the dismissal of the appeal.

What were the facts?

The appeal is filed by the Commissioner of Income Tax-I (Revenue) against the order dated July 11, 2012, passed by the Income Tax Appellate Tribunal (ITAT) for the assessment year 2009-10. The ITAT had deleted an addition of ₹68,06,284 made by the Assessing Officer (AO) on account of disallowance of commission paid by the assessee, Creative Travels (P) Ltd (Assessee), to its directors. This issue had arisen in previous assessment years (2002-03, 2005-06, 2007-08, and 2008-09) where the ITAT had consistently taken the same view. The Revenue had filed an appeal (ITA 389/2012) concerning the assessment year 2008-09, which was dismissed by the High Court on July 6, 2012.

What were the issues?

1. Whether the High Court was justified in dismissing the Revenue's appeal under Section 260-A of the Income Tax Act, 1961, when the issue regarding the disallowance of commission paid to directors for assessment year 2009-10 was identical to previous years where the ITAT had ruled in favor of the assessee and the Revenue's appeal against such a ruling for assessment year 2008-09 had already been dismissed by the High Court. Assessee's Contention: The assessee would likely contend that the present appeal is squarely covered by the High Court's previous order dismissing the Revenue's appeal for assessment year 2008-09, as the issue is identical. They would rely on the consistent view of the ITAT in prior years. Revenue's Contention: The Revenue would argue that the present appeal should be heard on merits, despite previous orders, potentially seeking to distinguish the facts or legal principles, or to establish a different precedent for the current assessment year.

Which sections of the Income-tax Act were involved?

Section 260-A

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF DELHI AT NEW DELHI . . . ITA 54/2013 . . . COMMISSIONER OF INCOME TAX-I ..... Appellant . Through : Mr Sanjeev Rajpal . . . versus . . . CREATIVE TRAVELS (P) LTD ..... Respondent . Through : Mr Prakash Kumar . . . CORAM: . HON'BLE MR JUSTICE BADAR DURREZ AHMED . HON'BLE MR JUSTICE R.V.EASWAR . . . O R D E R . 01.02.2013 . This appeal under Section 260-A of the Income Tax Act, 1961 is directed against the order dated 11.07.2012 passed by the Income Tax Appellate Tribunal in ITA 2172/Del/2012 pertaining to the assessment year 2009-10. The Tribunal has deleted an addition of ` 68,06,284/- made by the Assessing Officer on account of disallowance of the commission paid to the assessee?s directors of the said amount. The issue had arisen in earlier years also, that is, in the assessment years 2002-03, 2005-06 and 2007-08, whereby the Tribunal had taken the same stand. In another year, that is, the assessment year 2008-09 also, the Tribunal took the same view. The revenue had filed an appeal, being ITA 389/2012 which has been dismissed by this Court by an order dated 06.07.2012. . In view of the fact that the issue stands covered against the revenue, the present appeal is also dismissed. . . . BADAR DURREZ AHMED, J . . . . . . . R.V.EASWAR, J . FEBRUARY 01, 2013 . SR . . . $ 10 .

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