Facts of the Case

The Revenue filed appeals before the Delhi High Court challenging the order dated 26.08.2020 passed by the Income Tax Appellate Tribunal (ITAT) concerning Assessment Years 2013–14 and 2014–15.

The Assessing Officer had made an addition of ₹6,96,49,798/- for each assessment year by classifying certain income earned by the assessee (C.J. International Hotels Ltd.) as “income from house property” relating to property attached to the hotel.

However, in earlier years, the same issue had already been decided in favour of the assessee by the High Court.

Issues Involved

  1. Whether income derived from property attached to a hotel should be classified as income from house property or treated differently (e.g., business income).
  2. Whether a substantial question of law arises when the issue is already covered by prior judgments of the High Court 

Petitioner’s (Revenue’s) Arguments

  • The Revenue contended that the income in question should be taxed under the head income from house property.
  • The Assessing Officer’s addition was justified based on the nature of the property.
  • The Revenue also indicated that a Special Leave Petition (SLP) against the earlier High Court decision is pending before the Supreme Court.

Respondent’s (Assessee’s) Arguments

  • The assessee argued that the issue is squarely covered by an earlier decision of the Delhi High Court in its own case.
  • Since the same issue had already been decided in favour of the assessee, no new legal question arises.
  • The assessee did not oppose condonation of delay but resisted the merits of the appeal.

Court Findings / Order

  • The Court noted that the issue raised in the present appeals is already covered by its earlier judgment in:
    • Commissioner of Income Tax vs. C.J. International Hotels Ltd. (2010)
  • The Court held that:
    • No substantial question of law arises for consideration.
    • The matter is already settled in favour of the assessee.
  • Accordingly, the appeals filed by the Revenue were dismissed/closed.

Important Clarification by the Court

  • The Court clarified that:
    • The Revenue has already filed an SLP before the Supreme Court against the earlier judgment.
    • If the Revenue succeeds in the SLP, the outcome will apply to the present appeals as well.

Link to download the order -https://delhihighcourt.nic.in/app/showFileJudgment/60805092023ITA5042023_124317.pdf

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