In Dy. CIT v. Chaman Lal & Sons [2005] 3 SOT 333 (Asr.), the Assessing Officer declined deduction under section 80-IA to the assessee in so far as income derived from trading operations besides manufacturing activity undertaken by the assessee were concerned. Even while the Bench allowed such claim of the assessee on merits since trading was found to be incidental to the manufacturing activity, it also found that in the subsequent years too, the deduction was claimed and also allowed in the course of section 143(3) proceedings and no action under section 263 was taken. The Bench held in this regard as under :— "Albeit the principle of res judicata is not strictly applicable to the proceedings under the Act, yet, the doctrine of consistency does not permit the department authorities to change its stand when there is no change in facts or laws in one year vis-a-vis the other, warranting departure. Our view gets support from a recent decision rendered in the case of DIT v. Lovely Bal Shiksha Parishad [2004] 266 ITR 349 (Delhi)."
In Dy. CIT v. Chaman Lal & Sons [2005] 3 SOT 333 (Asr.), the Assessing Officer declined deduction under section 80-IA to the assessee in so far as income derived from trading operations besides manufacturing activity undertaken by the assessee were concerned. Even while the Bench allowed such claim of the assessee on merits since trading was found to be incidental to the manufacturing activity, it also found that in the subsequent years too, the deduction was claimed and also allowed in the course of section 143(3) proceedings and no action under section 263 was taken. The Bench held in this regard as under :—
ReplyDelete"Albeit the principle of res judicata is not strictly applicable to the proceedings under the Act, yet, the doctrine of consistency does not permit the department authorities to change its stand when there is no change in facts or laws in one year vis-a-vis the other, warranting departure. Our view gets support from a recent decision rendered in the case of DIT v. Lovely Bal Shiksha Parishad [2004] 266 ITR 349 (Delhi)."