Income Tax Addition of 6 Crores on Income Derived From House Property Abutting Assessee's Hotel: Delhi HC dismisses Appeal as matter Pending Before SC [Read Order]

The Delhi High Court dismissed the appeal on the issue of an Income tax addition of 6 crores on income derived from house property under the Income Tax Act, 1961 abutting the assessee's hotel. The appeal was dismissed as the matter was pending before the Supreme Court.

Mr Mayank Nagi appeared on behalf of the respondent/assessee and Mr Sanjeev Menon, the standing counsel, appeared on behalf of the appellant/revenue.

The appellant revenue challenged the order dated 26.08.2020, passed by the Income Tax Appellate Tribunal (“Tribunal”), which was in favour of C J International Hotels Ltd, the respondent-assessee.

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.

 In the earlier years, this view has not found favour with the court, therefore no substantial question of law arises for consideration by the Court.

The appellant/revenue has preferred a Special Leave  Petition (SLP) against the aforementioned decision of the coordinate bench of the Court which is pending consideration.

The court Justice Rajiv Shakdher and Justice Girish Kathpalia held that if the appellant/revenue is to succeed in the said SLP, parties will abide by the decision rendered by the Supreme Court in these appeals as well.

To Read the full text of the Order CLICK HERE

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