Facts of the Case

The Revenue preferred three connected appeals before the Delhi High Court against the common order dated 26 July 2017 passed by the Income Tax Appellate Tribunal in relation to Assessment Years 2007-08, 2008-09, 2009-10, and 2010-11.

The appeals arose from ITAT proceedings wherein relief had been granted to the assessee, Inter Globe Technology Quotient Pvt. Ltd.

The Revenue challenged the Tribunal’s findings before the High Court, raising questions of law for consideration.

However, during hearing, it was brought to the Court’s attention that the very same issue had already been decided by the Delhi High Court in its earlier judgment dated 22 May 2017 in Principal Commissioner of Income Tax v. Inter Globe Technology Quotient Pvt. Ltd.

Issues Involved

  1. Whether the Revenue’s challenge to the ITAT order raised any surviving substantial question of law?
  2. Whether the issue involved had already attained finality by virtue of the earlier Delhi High Court judgment involving the same assessee?

Petitioner’s Arguments (Revenue’s Contentions)

  • The Revenue challenged the correctness of the common order passed by the ITAT.
  • It sought reversal of the Tribunal’s findings in relation to the assessment years under dispute.
  • The Revenue attempted to press the legal question before the High Court through statutory appellate jurisdiction under Section 260A of the Income Tax Act. 

Respondent’s Arguments (Assessee’s Contentions)

  • The assessee contended that the issue raised by the Revenue was no longer res integra.
  • It relied upon the earlier Delhi High Court judgment dated 22 May 2017 in its own case.
  • Since the legal controversy already stood settled in favour of the assessee, no further adjudication was necessary.

Court Findings / Observations

The Delhi High Court observed that the exact question raised by the Revenue in the present appeals had already been answered in favour of the assessee in its earlier decision dated 22 May 2017.

The Court held that the issue stood concluded by precedent and therefore there was no justification to re-examine the same controversy.

Applying judicial consistency and precedent, the Court declined to interfere with the ITAT order.

Court Order / Final Decision

The Delhi High Court dismissed all three Revenue appeals, holding that the issue already stood answered against the Revenue and in favour of the assessee in the earlier judgment.

Important Clarification

This judgment is significant because it reinforces the principle of judicial discipline and consistency, wherein once an issue has been decided by the Court involving identical facts and the same assessee, subsequent appeals on the same legal issue may be dismissed by following the earlier precedent.

The Court did not independently re-adjudicate the substantive tax controversy but disposed of the matter based on the binding effect of its earlier ruling.

Link to download the order -  https://delhihighcourt.nic.in/app/case_number_pdf/2017:DHC:8763-DB/SMD30052017ITA3462017_165516.pdf

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