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.
