Case Law Details
PCIT Vs Pancard Clubs Ltd (Supreme Court of India)
The Revenue challenged an order of the Income Tax Appellate Tribunal (ITAT) dated 1 September 2017 for Assessment Year 2011-12. The dispute involved two issues:
- Whether receipts arising from the advance sale of room nights constituted revenue receipts.
- Whether the provision for “Holiday Scheme Surrender Value” was an allowable expenditure.
The Bombay High Court examined the matter and noted that both issues had already been decided in the assessee’s own cases for Assessment Years 2004-05, 2005-06, 2007-08, and 2009-10 through its order dated 17 February 2017. The Court further observed that the same issues had also been covered by its earlier decisions dated 9 May 2014 in the assessee’s own cases.
The Revenue fairly acknowledged that the issues were already covered by the earlier judgments. The High Court found that no distinguishing facts or circumstances had been pointed out that would justify taking a view different from the one adopted in the earlier decisions.
In view of the existing precedents in the assessee’s own cases, the High Court held that the questions proposed by the Revenue did not give rise to any substantial question of law. Consequently, the appeal was dismissed without any order as to costs.
The Revenue thereafter approached the Supreme Court by way of a Special Leave Petition. The Supreme Court condoned the delay in filing. It noted that a connected matter, titled Commissioner of Income Tax-7 versus M/s. Pancard Clubs Limited and connected appeals, had already been dismissed by the Court on 6 November 2025 in Civil Appeal No. 9161 of 2015.
Following its earlier order in the connected matter, the Supreme Court dismissed the Special Leave Petition as well. The Court also directed that all pending applications, if any, would stand disposed of.
Thus, the Bombay High Court’s view remained undisturbed, and the Revenue’s challenge on the issues relating to advance sale of room nights and provision for Holiday Scheme Surrender Value did not succeed before either the High Court or the Supreme Court.
Read Bombay High Court Judgment in this case: Bombay HC Dismisses Tax Appeal as Advance Room Night Receipts issue Already Settled in Earlier Years
FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER
Delay in filing is condoned.
Following the order passed by this Court in Civil Appeal No.9161 of 2015 titled as “Commissioner of Income Tax-7 versus M/s.Pancard Clubs Limited” and connected matters, dismissed on 06.11.2025, we dismiss this Special Leave Petition also.
Pending application(s), if any, shall stand disposed of.
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