PRINCIPAL COMMISSIONER OF INCOME TAX-2 vs. C. J. INTERNATIONAL HOTELS LTD.

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ITA/908/2017HC DelhiDLHC01426240201730 October 2017Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE SANJEEV SACHDEVA1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal filed by the Revenue. The Court observed that for previous assessment years, with the same factual matrix, this Court had already ruled in Commissioner of Income Tax v. M/s C.J. International Hotels Ltd. (ITA No. 42/2009 and connected cases, decided on 18.11.2010) that the assessee was not liable for the tax on the property, and instead, the sub-licensee was liable. The Tribunal had merely followed this established precedent. Therefore, the High Court found no grounds to interfere with the ITAT's order. The ratio decidendi is that a subsequent ITAT order, following a High Court ruling on identical facts for prior assessment years, should be upheld, and the Revenue cannot re-litigate the same issue.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax-2 (Revenue) against an order of the Income Tax Appellate Tribunal (ITAT). The ITAT had held that certain property was not taxable in the hands of the assessee, C. J. International Hotels Ltd. The Revenue contended that the ITAT erred in this finding. The High Court noted that for previous assessment years, with identical facts, this very Court had ruled in Commissioner of Income Tax v. M/s C.J. International Hotels Ltd. (ITA No. 42/2009 and connected cases, decided on 18.11.2010) that the assessee was not liable, but rather the sub-licensee was liable. The ITAT had followed this prior ruling. The amount in dispute and the specific assessment year(s) are not explicitly stated in the provided text.

What were the issues?

1. Whether the Income Tax Appellate Tribunal erred in holding that the property was taxable in the hands of the assessee? (Question of law) Arguments: Assessee: The judgment does not record any specific arguments made by the assessee. However, it is implied that the assessee would have supported the ITAT's decision. Revenue: The Revenue argued that the ITAT fell into error in holding that the property was taxable in the hands of the assessee. The Revenue's contention is that the ITAT's decision was incorrect, implying a disagreement with the Tribunal's conclusion on taxability. The Revenue's argument is implicitly based on the belief that the property *should* have been taxed in the hands of the assessee, contrary to the ITAT's finding.

AI-generated summary — verify with the full judgment below

$~22 * IN THE HIGH COURT OF DELHI AT NEW DELHI

+ ITA 908/2017 & CM No.38790/2017

PRINCIPAL COMMISSIONER OF INCOME TAX-2 ..... Appellant Through: Mr. Zoheb Hossain, Sr. Standing Counsel for Revenue.

versus

C. J. INTERNATIONAL HOTELS LTD.

..... Respondent Through: Mr. Mayank Nagi with Mr. Tarun Singh & Mr. Vikrant A. Maheshwari, Advs.

CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE SANJEEV SACHDEVA

O R D E R %

30.10.2017

The Revenue argues that the Income Tax Appellate Tribunal (ITAT) fell into error in holding that the property was taxable in the hands of the assessee.

At the outset, it is pointed out that for previous assessment years, having regard to the same factual matrix, this Court by its decision in Commissioner of Income Tax v. M/s C.J. International Hotels Ltd. (ITA No. 42/2009 and connected cases, decided on 18.11.2010) had ruled that the assessee was not liable but rather the sub-licensee was liable. The ITAT has merely followed that ruling.

We see no ground to interfere. Accordingly, the appeal is dismissed.

S. RAVINDRA BHAT, J

SANJEEV SACHDEVA, J OCTOBER 30, 2017 kks

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