Facts of the Case

The present appeal was filed by the Revenue challenging the order dated 03.05.2023 passed by the Income Tax Appellate Tribunal. The matter pertains to Assessment Year 2018–19.

The Revenue contended that the Tribunal erred in its findings and sought interference by the High Court under Section 260A of the Income Tax Act.

It was brought to the notice of the Court that an identical issue had already been adjudicated in a connected appeal (ITA No. 616/2023) involving the same assessee, wherein the Court had dismissed the Revenue’s appeal on the ground that no substantial question of law arose.

Issues Involved

  1. Whether the order of the Income Tax Appellate Tribunal gives rise to a substantial question of law under Section 260A of the Income Tax Act?
  2. Whether the Revenue’s appeal is maintainable when identical issues have already been decided in a connected matter?

Petitioner’s (Revenue’s) Arguments

  • The Revenue challenged the correctness of the ITAT’s order dated 03.05.2023.
  • It was argued that the Tribunal’s findings warranted interference by the High Court.
  • The Revenue sought admission of the appeal on the premise that legal issues were involved.

Respondent’s (Assessee’s) Position

  • The respondent did not appear during the proceedings.
  • However, reliance was placed on the earlier judgment in the assessee’s own case (ITA 616/2023), where similar issues had already been adjudicated in favour of the assessee.

Court’s Findings / Order

  • The Court observed that the issue raised in the present appeal was identical to the issue already decided in ITA No. 616/2023.
  • In the earlier decision dated 08.11.2023, the Court had concluded that no substantial question of law arose.
  • Applying the same reasoning, the Court held that the present appeal also does not give rise to any substantial question of law.
  • Result: The appeal filed by the Revenue was closed/dismissed.

Important Clarification

  • The High Court reiterated that Section 260A jurisdiction is limited only to substantial questions of law.
  • Where identical issues have already been adjudicated and no new legal question arises, the Court will not entertain repetitive appeals.
  • This decision reinforces judicial consistency and discourages duplicative litigation.

Sections Involved

  • Section 260A – Appeal to High Court (Income Tax Act, 1961)

Link to download the order -https://delhihighcourt.nic.in/app/showFileJudgment/60809112023ITA6172023_181411.pdf

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