Facts of the Case

The present appeal was filed by the Revenue challenging the order dated 25.03.2022 passed by the Income Tax Appellate Tribunal (ITAT) for Assessment Year 2012–13.

The Revenue sought to raise certain questions of law against the Tribunal’s findings. However, it was brought to the Court’s notice that identical issues had already been adjudicated in earlier litigation involving the same assessee for Assessment Year 2010–11.

Further, reliance was placed on a subsequent judgment of the Supreme Court in a connected matter involving cooperative societies engaged in similar activities, wherein the issue had been decided in favour of the assessee.

Issues Involved

  1. Whether the appeal filed by the Revenue raises any substantial question of law under the Income Tax Act.
  2. Whether issues raised in the present appeal are already covered by earlier judgments of the High Court and the Supreme Court.

Petitioner’s (Revenue’s) Arguments

  • The Revenue challenged the correctness of the ITAT’s order dated 25.03.2022.
  • It contended that the Tribunal erred in law and that substantial questions of law arose for consideration by the High Court.

Respondent’s (Assessee’s) Arguments

  • The assessee argued that the issues raised were squarely covered by the earlier judgment of the Delhi High Court in its own case for AY 2010–11.
  • It was further submitted that the Supreme Court, in Principal Commissioner of Income Tax vs Krishak Bharti Cooperative Ltd. (2023 SCC OnLine SC 1167), had already decided similar issues in favour of the assessee.
  • Therefore, no fresh adjudication was required as the matter stood settled.

Court’s Findings / Order

  • The Court observed that the issues raised in the present appeal were already covered against the Revenue by earlier decisions.
  • It held that no substantial question of law arose for consideration.
  • Accordingly, the appeal filed by the Revenue was dismissed.
  • All pending applications were also disposed of.

Important Clarification

  • The Court reaffirmed that where issues are already settled by precedents of jurisdictional High Court and Supreme Court, filing of repetitive appeals is unwarranted.
  • It emphasized judicial discipline and consistency in tax litigation.

Sections Involved

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

Link to download the order -https://delhihighcourt.nic.in/app/showFileJudgment/60807112023ITA6122023_121852.pdf

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