Facts of the Case

The present appeal was filed by the Revenue before the Delhi High Court against the order dated 07.01.2020 passed by the Income Tax Appellate Tribunal (ITAT) concerning Assessment Year 2013–14.

The appellant, Commissioner of Income Tax (International Taxation)-3, challenged the Tribunal’s ruling in favor of the respondent, Westin Hotel Management LP.

During the hearing, it was acknowledged by the Revenue’s counsel that the issue raised in the present appeal was already covered by a prior judgment of the coordinate bench in Director of Income Tax v. Sheraton International Inc.

Issues Involved

  • Whether any substantial question of law arises for consideration when the issue is already covered by an earlier binding precedent.
  • Applicability of the ruling in Sheraton International Inc case to the present matter.

Petitioner’s (Revenue’s) Arguments

  • The Revenue sought to challenge the ITAT order dated 07.01.2020.
  • However, during proceedings, the Revenue did not dispute that the issue involved was already covered by the decision in Director of Income Tax v. Sheraton International Inc.
  • The appeal was nevertheless pursued, possibly to keep the issue alive pending further judicial consideration.

Respondent’s Arguments

  • The respondent relied on the binding precedent of the Delhi High Court in the Sheraton International Inc case.
  • It was contended that since the issue is already settled, no fresh question of law arises, and the appeal deserves dismissal.

Court’s Findings / Order

    • The issue raised in the appeal is squarely covered by the earlier judgment in Director of Income Tax v. Sheraton International Inc.
    • Consequently, no substantial question of law arises for consideration.
  • Final Order:
    • The appeal filed by the Revenue was closed/dismissed.
    • All pending applications were also disposed of.

Important Clarification by the Court

    • Since the Revenue has already filed an appeal against the Sheraton International Inc judgment,
    • If the Revenue succeeds before the Supreme Court,
    • Then both parties in the present case shall be bound by that final outcome.

Sections Involved

  • Income Tax Act, 1961 (General appellate provisions under Section 260A – implied)
  • International Taxation principles (as applicable in the underlying dispute)

Link to download the order -https://delhihighcourt.nic.in/app/showFileJudgment/60820112023ITA6322023_155013.pdf

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.