Rule of consistency bars renewed TDS demand on data line charges where identical facts were already decided in the assessee's favour.

Payments for data line charges were held not to justify revival of the TDS demand where the same issue had already been decided in the assessee's favour for the immediately preceding year on identical facts. The Tribunal applied the rule of consistency and judicial discipline, noting that no material distinction was shown for the year in appeal and that the earlier ruling had already addressed both the limitation aspect under section 201(3) and the nature of the remittance. The deletion of the demand under sections 201(1) and 201(1A) was therefore upheld, and the Revenue's challenge failed.

---

---

Issues: Whether the Revenue was justified in challenging deletion of the demand raised under section 201(1) and section 201(1A) of the Income-tax Act, 1961 in respect of data line charges, where the same issue had already been decided in the assessee's favour for the immediately preceding assessment year on identical facts.

Analysis: The dispute concerned the levy of TDS demand on payments made towards data line charges and the applicability of the limitation framework under section 201(3) as well as the taxability of the underlying remittance. The record showed that for the immediately preceding assessment year, the appellate authorities had already accepted the assessee's case on the same facts and the Tribunal had affirmed that view. No material distinction was shown for the year under appeal. In such a situation, the rule of consistency and judicial discipline required the same view to be followed, particularly when the earlier decision had considered the limitation aspect and the nature of the payment.

Conclusion: The deletion of the demand was upheld and the Revenue's challenge failed.

---