Facts of the Case

The Revenue preferred a batch of appeals before the Delhi High Court against the respondent assessees challenging relief granted by the appellate authorities.

The central dispute pertained to tax additions made by the Assessing Officer and the subsequent deletion or modification thereof by the appellate forum.

At the stage of hearing, it was brought to the notice of the Court that an identical issue had already been examined and decided in an earlier judgment dated 27 July 2015 in ITA No. 510/2015. Based on that precedent, the matter stood substantially concluded.

Issues Involved

  1. Whether the Revenue’s appeals raised any substantial question of law under Section 260A of the Income Tax Act?
  2. Whether the controversy involved had already been settled by an earlier binding precedent of the Delhi High Court?
  3. Whether interference with the orders of the lower appellate authorities was warranted?

Petitioner’s Arguments (Revenue’s Contentions)

The Revenue contended that:

  • The appellate authorities had erred in granting relief to the assessees.
  • The additions made by the Assessing Officer were legally sustainable.
  • Substantial questions of law arose for consideration by the High Court under Section 260A.

Respondent’s Arguments (Assessee’s Contentions)

The assessees contended that:

  • The issues raised by the Revenue were no longer res integra.
  • The matter was squarely covered by the Delhi High Court’s earlier decision in Aakash Arogya Mandir Pvt. Ltd.
  • No substantial question of law survived for adjudication.

Court Findings / Order

The Delhi High Court observed that the issues raised in the present batch of appeals were directly covered by its earlier decision dated 27 July 2015 in Pr. Commissioner of Income Tax (Central-II) vs. Aakash Arogya Mandir Pvt. Ltd.

Since the controversy stood settled by precedent, the Court held that no substantial question of law arose for consideration.

Accordingly, all the Revenue appeals were dismissed

Important Clarification

The Court reaffirmed the principle that where an issue is already settled by a binding precedent, repetitive appeals by the Revenue on identical facts and legal propositions are not maintainable unless distinguishable facts or new legal issues are demonstrated.

This judgment reinforces judicial discipline and consistency in tax litigation.

Link to Download the Order  https://delhihighcourt.nic.in/app/case_number_pdf/2015:DHC:11737-DB/SMD12102015ITA7732015_163053.pdf

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