Facts of the Case

The Revenue preferred appeals before the Delhi High Court against the orders of the Income Tax Appellate Tribunal dated 19 September 2016 concerning Assessment Years 2009-10 and 2010-11. The respondent-assessee, Travelport L.P. USA, was already involved in similar litigation for Assessment Years 2006-07, 2007-08 and 2008-09.

In the earlier round of litigation, the High Court had, by order dated 19 December 2016, remanded those earlier assessment year matters back to the Tribunal for fresh adjudication. Since the issues in the present appeals were connected with and substantially similar to the issues involved in those earlier years, the Revenue sought corresponding relief in these appeals as well.

 Issues Involved

  1. Whether the ITAT’s order for AY 2009-10 and AY 2010-11 should be sustained or set aside.
  2. Whether consistency required remand of the present appeals in line with the earlier remand order in the assessee’s own case.
  3. Whether the Tribunal should reconsider the appeals afresh in accordance with earlier judicial directions.

 Petitioner’s Arguments (Revenue’s Contentions)

  • The Revenue submitted that identical issues had already been remanded by the High Court in the assessee’s own case for earlier assessment years.
  • Since the factual and legal matrix was substantially similar, judicial consistency required that the impugned ITAT orders for AY 2009-10 and AY 2010-11 also be set aside and remanded.
  • The Revenue contended that fresh adjudication by the Tribunal was necessary in accordance with the earlier High Court directions.

 Respondent’s Arguments (Assessee’s Contentions)

  • The respondent accepted notice and participated in the proceedings.
  • The respondent consented to final disposal of the appeals.
  • The assessee maintained its legal position before the Tribunal and reserved its rights on merits for fresh adjudication.

 Court Findings / Court Order

The Delhi High Court observed that in the respondent’s own case for earlier assessment years (AY 2006-07, 2007-08 and 2008-09), similar issues had already been remanded to the ITAT for fresh consideration.

To maintain judicial consistency and in view of the earlier order, the Court set aside the ITAT’s order dated 19 September 2016 for Assessment Years 2009-10 and 2010-11 and restored the appeals to the file of the ITAT for fresh disposal in accordance with the earlier directions.

 Important Clarification by the Court

The High Court expressly clarified that it had not expressed any opinion on the merits of the contentions of either party. The Tribunal was directed to independently adjudicate the matter afresh.

Link to download the order -  https://delhihighcourt.nic.in/app/case_number_pdf/2017:DHC:8757-DB/SMD26042017ITA2492017_163151.pdf

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