Facts of the Case

The present appeals filed by the Revenue pertain to Assessment Year 2011–12. The matters involve three separate assessees, namely Spirit Infradevelopers, Spirit Infrastructure Pvt. Ltd., and Spirit Global Construction Pvt. Ltd.

The core issue in these appeals was identical to the issue already adjudicated in ITA 191/2018, involving similar facts and legal questions. Both parties acknowledged that the factual matrix and legal controversy in the present appeals were pari materia with the earlier decided case.

Issues Involved

  1. Whether the legal issue raised in the present appeals is identical to the issue decided in ITA 191/2018.
  2. Whether the decision in ITA 191/2018 should apply to the present batch of appeals.
  3. Whether the Revenue’s appeals can survive once the common question of law has already been decided against it.

Petitioner’s (Revenue’s) Arguments

  • The Revenue preferred appeals challenging the decision of lower authorities for AY 2011–12.
  • It sought adjudication on the legal issue arising in the present cases.
  • However, it was acknowledged during proceedings that the issue was already covered by a prior decision (ITA 191/2018).

Respondent’s (Assessee’s) Arguments

  • The assessees submitted that the issues involved were identical to those decided in ITA 191/2018.
  • It was argued that since the High Court had already ruled in favour of the assessee in the earlier case, the same reasoning should apply.
  • The respondents contended that no separate adjudication was required.

Court’s Findings / Order

  • The Court noted that the facts and legal issues in the present appeals are pari materia with ITA 191/2018.
  • It was further recorded that both parties agreed that the earlier judgment would govern the present appeals.
  • Since the common question of law had already been decided against the Revenue and in favour of the assessees, the Court held that:
    • The present appeals would follow the same outcome.
  • Accordingly, all appeals were closed and disposed of in favour of the assessees.

Important Clarification

  • The judgment reinforces the principle of judicial consistency, where identical issues must be decided in line with earlier rulings.
  • Once a common question of law is settled in a connected matter, subsequent appeals involving identical facts are liable to be disposed of accordingly without re-litigation.
  • The Court emphasized efficiency and avoidance of duplication in adjudication.

Link to download the order -  https://delhihighcourt.nic.in/app/showFileJudgment/RAS18072023ITA1922018_151826.pdf

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