Is CIT(A) legally justified in allowing relief to the assessee on the basis of its earlier orders in the assessee’s own case?

This case concerns whether the Commissioner of Income Tax (Appeals) was legally correct in classifying income from letting out business assets as 'Income from House Property'. The Revenue argues that the CIT(A) overlooked Supreme Court decisions, specifically the case of Universal Plast Limited vs. CIT, and wrongly applied the principle of res judicata, as each assessment year is distinct. The appeal questions the justification for granting relief based on earlier orders in the assessee's own case.

IN THE INCOME TAX APPELLATE TRIBUNAL
(DELHI BENCH ‘E’ : NEW DELHI)

BEFORE SHRI O.P.KANT, ACCOUNTANT MEMBER
and

SHRI KULDIP SINGH, JUDICIAL MEMBER
 ITA No.1879/Del./2018

ASSESSMENT YEAR : 2014-15
ACIT,  (PAN : AAACM2063Q)
(APPLICANT) 

vs. 

M/s. Modi Industries Ltd.
Circle-17(1) Modi Nagar, U.P
New Delhi New Delhi
(RESPONDENT)

REVENUE BY : Shri Atiq Ahmed, Senior DR
ASSESSEE BY : Shri Robifyain Adv. Sh. Arpit Goyal, CA

Date of Hearing : 15.04.2021
Date of Order : 11.06.2021

 O R D E R

PER KULDIP SINGH, JUDICIAL MEMBER :

Appellant, Asstt. Commissioner of Income Tax, New Delhi (hereinafter referred to as ‘the revenue’) by filing the present appeal sought to set aside the impugned order dated 22.12.2017 passed by the Commissioner of Income-tax (Appeals)-22, New Delhi qua the assessment years 2014-15 on the grounds inter alia that :

“1. Whether in facts and on circumstances of the case, the Ld. CIT(A) is legally justified in holding that the income from letting out of some of business assets of the assessee  company was in nature of “Income from House Property” by ignoring the ratio decidendi of Hon’ble Supreme Court in case of Universal Plast Limited vs. CIT(1999) 237 ITR 454?

2. Whether in facts and on circumstances of the case, the Ld. CIT(A) is legally justified in allowing relief to the assessee on the basis of its earlier orders in the assessee’s own case by ignoring decision of Hon’ble Apex Court in case of Universal Plast Limited vs. CIT (Supra) and despite the fact that principle of res-judicata is not applicable to Income Tax proceedings as each assessment year is a separate year?

3. That the appellant craves leave to add, amend, alter or forgo any ground (s) of appeal either before or at the time of hearing of the appeal.” 

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