Case Law Details
PCIT Vs C J International Hotels Ltd. (Delhi High Court)
The Delhi High Court has made a significant decision regarding appeals numbered ITA No. 504/2023 and ITA No. 505/2023. These appeals challenged the income tax addition made by the Assessing Officer. The court’s stance and the pending Special Leave Petition (SLP) are crucial aspects of this case.
Detailed Analysis: In this case, the Assessing Officer had made substantial additions to the income, totaling Rs. 6,96,49,798/-, for each of the Assessment Years (AYs) 2013-14 and 2014-15. The reason behind these additions was the categorization of this income as derived from a house property adjoining a hotel.
The controversy in this case is not new, as a similar issue was dealt with by the Delhi High Court in a decision dated 18.11.2010. The previous judgment involved the same respondent/assessee, and it laid down a legal precedent.
While the appellant/revenue challenged the Assessing Officer’s additions, the Delhi High Court, in its recent judgment, noted that the issue was already addressed in the earlier decision. The court found that no substantial question of law was left for consideration.
Importantly, the appellant/revenue has filed a Special Leave Petition (SLP) against the earlier decision of the court. The SLP is currently pending before the Supreme Court. The court made it clear that if the appellant/revenue succeeds in the SLP, the parties will be bound by the decision of the Supreme Court in these appeals.
Conclusion: The Delhi High Court has closed the appeals, given that the Assessing Officer’s income tax additions stood in line with the court’s prior decision. The pending SLP before the Supreme Court holds the key to the final resolution of this case. Parties will act based on the digitally signed copy of the order, and the outcome of the SLP will determine the future course of action.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. These are the applications moved on behalf of the appellant/revenue, seeking condonation of delay in re-filing the above-captioned appeals.
2. According to the appellant/revenue, there is a delay of 439 days in re-filing each of the above-captioned appeals.
3. Mr Mayank Nagi, who appears on behalf of the respondent/assessee, says that he would not have any objection if the prayers made in the above-captioned applications are allowed.
3.1 It is ordered accordingly.
4. Accordingly, the delay is condoned in the above-captioned appeals.
5. The applications are disposed of, in the aforesaid terms. ITA 504/2023 & ITA 505/2023
6. It is not disputed by Mr Sanjeev Menon, learned standing counsel, who appears on behalf of appellant/revenue, that the issue raised in the above-captioned appeals stands covered by the decision dated 18.11.2010, concerning the respondent/assessee rendered in a bunch of appeals including Commissioner of Income Tax, Circle 3(1), New Delhi vs. M/s. C.J. International Hotels Ltd, 2010:DHC:5567-DB.
7. The above-captioned appeals concern Assessment Years (AYs) 2013-14 [ITA No. 504/2023] & AY 2014-15 [ITA No. 505/2023].
8. These appeals assail a common order dated 26.08.2020, passed by the Income Tax Appellate Tribunal [in short, “Tribunal”].
9. The Assessing Officer has made an addition amounting to Rs. 6,96,49,798/-, in each of the above-captioned AY, by categorizing the same as income derived from house property abutting the subject hotel.
10. In the earlier years this view has not found favour with this court.
11. Therefore, according to us, no substantial question of law arises for consideration by this Court.
12. We may note that the appellant/revenue has preferred a Special Leave Petition (SLP) against the aforementioned decision of the coordinate bench of this Court.
13. We are informed that the said SLP is pending consideration.
14. It is made clear that if the appellant/revenue are to succeed in the said SLP, parties will abide by the decision rendered by the Supreme Court in these appeals as well.
15. Accordingly, the above-captioned appeals are closed.
16. Parties will act based on the digitally signed copy of the order.
