2012 (9) TMI 1221

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....ONOURABLE MR.JUSTICE N.V. ANJARIA) In the instant appeal, which is directed against order dated 13.05.2011 of the Income Tax Appellate Tribunal, `B' Bench, Ahmedabad, in ITA No.2492 of 2010, the Revenue has raised the following question proposing the same as a substantial question of law: "Whether the Appellate Tribunal is right in law and on facts in deleting the addition of Rs. 3....

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.... Kelvinator of India (256 ITR 1) and other decisions on the point that a change of opinion could not be a ground for exercising powers under section 148 of the Income Tax Act, 1961 (hereinafter referred to as `the Act' for sake of brevity). The Department preferred appeal before the Income Tax Appellate Tribunal which was dismissed and the order of CIT(A) was confined, that order is impugned i....

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....d that principle of res judicata does not apply in the Income Tax Act. However, though it is true that principles of res judicata does not apply, the rule of consistency does apply. The AO failed to point out those facts and circumstances are different in the assessment year under appeal. .... Since the AO has considered identical issue in the preceding assessment year 2003-04 and accepted the cla....

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.... CIT(A) and thereafter the Tribunal were justified in deleting the addition made by the Assessing Officer on the basis of stock valuation. It is an accepted principle that eventhough strictly speaking in Income Tax proceedings, the principle of res judicata does not apply, the principle of consistency is required to be followed. Furthermore, the assessee had explained the inventory and differentia....