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2006 (12) TMI 499 - PUNJAB AND HARYANA HIGH COURT
Allowed/disallowed of Interest on interest-free loans - Interest on interest-free loans advanced by the assessee-company to its subsidiary and associate companies in which the directors were interested? - interest on investment in shares by the assessee company in its subsidiary and associate companies - HELD THAT:- Tribunal has followed its own decision in the case of the assessee for the earlier assessment years, which view has also been upheld by this Court vide CIT v. Industrial Cables (India) Ltd. on the ground that the Tribunal had only followed its view in the case of the assessee, which had become final.
We may notice that although the principle of consistency is applicable and the decision on the issue having been taken in favour of the assessee for the previous year, the same has to be followed, but each assessment year being an independent one, in view of conscious judgment of this Court on the issue after referring to other judgments and in absence of any direct judgment of the Hon’ble Supreme Court in New Jehangir Vakil Mills Co. Ltd. v. CIT [1963 (4) TMI 60 - SUPREME COURT], we are of the view that the earlier order of this Court dismissing appeal of the revenue in limine cannot be taken to be conclusive.
Thus, we partly allow this appeal in relation to question No. 1 and set aside the finding of the Tribunal and uphold the order of the Assessing Officer. As far as other issues are concerned, the appeal is dismissed.