Facts of the Case

  • The Revenue preferred an appeal before the Delhi High Court against the ITAT order.
  • The dispute pertains to Assessment Year 2014–15.
  • During the hearing, it was acknowledged by the Revenue that the issue involved in the present appeal is squarely covered by an earlier judgment of the coordinate bench.

Issues Involved

  1. Whether the appeal raises any substantial question of law under Section 260A of the Income Tax Act.
  2. Whether the matter is already covered by precedent, thereby making the appeal non-maintainable.

Petitioner’s Arguments (Revenue)

  • The Revenue sought to challenge the ITAT order.
  • However, it did not dispute that the issue raised is already covered by the judgment in Director of Income Tax vs Sheraton International Inc. (2009) 

Respondent’s Arguments (Assessee)

  • The Respondent relied on the binding precedent of the Delhi High Court.
  • Argued that since the issue is already settled, no substantial question of law arises.

Court Findings / Order

  • The Delhi High Court observed that the issue is fully covered by an earlier judgment of the coordinate bench.
  • It held that:
    • No substantial question of law arises for consideration.
    • Consequently, the appeal filed by the Revenue is dismissed/closed.

Important Clarification by Court

  • The Court clarified that:
    • The Revenue has already preferred an appeal against the earlier judgment (Sheraton International Inc.) before the Supreme Court.
    • If the Revenue succeeds in that matter, the present parties will be bound by the final decision of the Supreme Court.

Link to download the order -https://delhihighcourt.nic.in/app/showFileJudgment/60820112023ITA6332023_154708.pdf

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