Shangri-La International Hotel Management Pte. Ltd. Vs Commissioner… — Income Tax | Delhi HC (2025)

Shangri-La International Hotel Management Pte. Ltd. Vs Commissioner… — Income Tax | Delhi HC (2025)

What the court decided

AI extract

Outcome

Order dated 26.03.2025 passed under Section 264 of the Act for AY 2021-22 set aside; revision application dated 28.04.2023 allowed; CIT (Appeals) directed to take consequential action in accordance with law.

Issue for consideration

Whether the revision application dated 28.04.2023 filed by the petitioner under Section 264 of the Income Tax Act, 1961 to revise the intimation/order dated 28.04.2022 for AY 2021-22 should be allowed, notwithstanding respondent no. 1's denial of relief on the ground that CIT v. Sheraton International Inc. is stated to be pending before the Supreme Court. +1 more

Court's answer

Taking on record the petitioner's submission that the issue stands covered by the judgments in Sheraton International Inc., CIT v. Sheraton International Inc. (ITA 271/2023), CIT v. Starwood Hotels & Resorts Worldwide Inc. and the decisions in the assessee's own case (ITAs 532/2023 & 535/2023), the Court held that the result in this petition shall also be the same as was decided by this Court in the assessee's own case.

Ratio / Principle

The petition is allowed and the order dated 26.03.2025 passed under Section 264 of the Act for the assessment year 2021-22 is set aside.

Key takeaways

The application filed on 28.04.2023 is allowed, and the CIT (Appeals) shall take consequential action in accordance with law.ratio¶30

Detailed headnote1 paragraphs

W.P.(C) 17355/2025, High Court of Delhi at New Delhi (V. Kameswar Rao & Vinod Kumar JJ., oral), decided 14.11.2025 — Shangri-La International Hotel Management Pte. Ltd. v. Commissioner of Income-Tax (International Tax)3, Delhi & Ors. The petitioner had filed a revision application dated 28.04.2023 under Section 264 of the Income Tax Act, 1961 seeking revision of the intimation dated 28.04.2022 issued under Section 143(1) for AY 2021-22. Respondent No. 1, by order dated 26.03.2025, accepted maintainability of the revision petition (invoking Vijay Gupta v. CIT [2016] 68 Taxmann.com 131 and EPCOS Electronic Components S.A. v. Union of India [2019] 107 taxmann.com 227 (Delhi)) but denied relief on the ground that CIT v. Sheraton International Inc. (2009) 178 Taxmann 84 (Del) was pending before the Supreme Court; counsel submitted the SLP stood closed on low tax effect. Taking that submission on record and noting the issue stood covered by Sheraton International Inc., CIT v. Sheraton International Inc. (ITA 271/2023, decided 11.05.2023), CIT v. Starwood Hotels & Resorts Worldwide Inc. (2022:DHC:004730) and the Division Bench decisions in the assessee's own case (ITAs 532/2023 & 535/2023, decided 18.09.2023), the Court held the result would be the same as in the assessee's own case, allowed the petition, set aside the order dated 26.03.2025, allowed the application dated 28.04.2023 and directed CIT (Appeals) to take consequential action in accordance with law. Petition disposed of on 14.11.2025.

$~82

IN THE HIGH COURT OF DELHI AT NEW DELHI

% Date of Decision : 14.11.2025

- W.P.(C) 17355/2025

SHANGRI-LA INTERNATIONAL HOTEL MANAGEMENT PTE. LTD.

.....Petitioner Through: Mr. Manuj Sabharwal, Mr. Devvrat Tiwari and Mr. Drona Negi, Advs.

versus

COMMISSIONER OF INCOME-TAX (INTERNATIONAL TAX)3, DELHI & ORS.

.....Respondents Through: Mr. Siddhartha Sinha, SSC.

CORAM: HON'BLE MR. JUSTICE V. KAMESWAR RAO HON'BLE MR. JUSTICE VINOD KUMAR

V. KAMESWAR RAO , J. (ORAL)

CM APPL. 71407/2025 (Exemption)

Exemption is allowed, subject to all just exceptions.

The application stands disposed of.

W.P.(C) 17355/2025

This petition has been filed with the following prayers:-

“a. Issue a writ in the nature of certiorari, mandamus or any other appropriate writ(s), order(s), directions(s) quashing the impugned order dated 26.03.2025 passed by the Respondent No. 1 (Annexure P-1) under s. 264 of the Incometax Act, 1961 with a direction to allow the

Signature Not Verified

Page 1 of 3

W.P.(C) 17355/2025

Signed By:PRADEEP SHARMA Signing Da te:2 4.11.2025 14:33:37

application dated 28.04.2023 filed by the Petitioner and to issue further directions for grant of refund along with interest under s. 244A of the Act; and/ or”

The submission of learned counsel for the petitioner is primarily that the petitioner had filed an application on 28.04.2023 for revising the intimation/order dated 28.04.2022. The said order dated 28.04.2022 was issued under Section 143(1) of the Income Tax Act, 1961 (“the Act”) for the assessment year 2021-22. The submission is that though respondent no. 1 has accepted that the revision petition under Section 264 of the Act is maintainable in view of the decision of this Court in Vijay Gupta v. CIT [2016] 68 Taxmann.com 131 and EPCOS Electronic Components S.A. v. Union of India, [2019] 107 taxmann.com 227 (Delhi) , but denied the relief on the ground that CIT v. Sheraton International Inc. (2009) 178 Taxmann 84 (Del) is pending consideration before the Supreme Court.

Thus, the conclusion rendered by respondent no. 1 not giving the benefit of the order passed by this Court in the petitioner’s own case, on the argument that Sheraton International Inc. (supra) is pending consideration before the Supreme Court is clearly misplaced. In any case, it is his submission that the SLP before the Supreme Court has been closed on the ground of low tax effect.

Though, Mr. Siddhartha Sinha is unable to confirm this particular submission made by the counsel for the petitioner, we by taking the submission made by the counsel for the petitioner on record as, concededly the issue stands covered by the judgment in Sheraton International Inc. (supra) , CIT v. Sheraton International Inc. [decided by this court on

Signature Not Verified

Page 2 of 3

W.P.(C) 17355/2025

Signed By:PRADEEP SHARMA Signing Da te:2 4.11.2025 14:33:37

11.05.2023 in ITA 271/2023] and CIT v. Starwood Hotels & Resorts Worldwide Inc., 2022:DHC:004730 and also the Commissioner of Income Tax – International Taxation-3 v. Shangri-LA International Hotel Management Pte Ltd., ITAs 532/2023 & 535/2023 decided on 18.09.2023 , hold that the result in this petition shall also be the same as was decided by this Court in the assessee’s own case and accordingly, the petition is allowed and the order dated 26.03.2025 passed under Section 264 of the Act for the assessment year 2021-22 is set aside. The application filed on 28.04.2023 is allowed. The CIT (Appeals) shall take consequential action, in accordance with law.

In view of the above, the petition is disposed of.

V. KAMESWAR RAO, J

VINOD KUMAR, J

NOVEMBER 14, 2025 /sr

Signature Not Verified

Page 3 of 3

W.P.(C) 17355/2025

Signed By:PRADEEP SHARMA Signing Da te:2 4.11.2025 14:33:37