Delhi High Court hears IHCL fee waiver suit and Ansal Theatre tax dispute

The Delhi High Court is presiding over two distinct legal matters involving commercial disputes and tax deductions.

In the first case, the court refused to dismiss lawsuits filed by Indian Hotels Company Limited (IHCL) against the New Delhi Municipal Council (NDMC). IHCL is seeking an exemption from approximately Rs 46 crore in licence fees related to the Taj Mahal Hotel and The Connaught hotel during the COVID-19 pandemic. The court ruled that the substance of the legal notice takes precedence over its label, allowing the claim to proceed to trial.

In a separate matter, the court issued a notice to Ansal Theatre & Clubotels (P) Ltd. following an appeal by the Income Tax Department. The dispute concerns whether approximately Rs 10.45 crore in expenditures—related to compensation and legal costs stemming from the 1997 Uphaar Cinema fire tragedy—can be claimed as business deductions. While the Income Tax Appellate Tribunal previously allowed part of the claim by distinguishing between compensatory and punitive damages, the Income Tax Department is challenging that decision.