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2013 (1) TMI 758 - AT - Income TaxPrinciple of Consistency - Receipt of license fee towards canteen and staff quarters rent was chargeable under the head “Income from business" by AO in previous years. It was contended that in the present year, it should be taxed accordingly as per consistency principle - HELD THAT : - It cannot be held that if a mistake is committed by the AO in earlier years, the same should be perpetuated. Thus, this rental income is taxable under the head income from house property. Repairs and Insurance of Machinery u/s 31(i) - CIT(A) deleted the disallowance made by the AO being the expenses of reconditioning of body and engine expenses. It was contended that the decision was in favour of assessee in previous assessment years. HELD THAT : - Expenditure had been incurred to “preserve and maintain” an already existing asset, and the object of the expenditure was not to bring a new asset into existence or to obtain a new advantage. CIT (A)'s decision was upheld. Decision in the cases of COMMISSIONER OF INCOME-TAX VERSUS SARAVANA SPINNING MILLS P. LTD. [2007 (8) TMI 16 - SUPREME COURT] and COMMISSIONER OF INCOME TAX VERSUS MIHIR TEXTILES LTD. [2008 (5) TMI 282 - GUJARAT HIGH COURT], relied upon.
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