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2018 (1) TMI 668 - AT - Income TaxAssessment of income of the assessee - Principal-Agent- Relationship exists between the assessee and the government of Maharashtra - the assessee is an agent of the State Government of Maharashtra - whether the income generated and earned by the principle i.e. the State Government of Maharashtra is liable to be taxed in the hands of the CIDCO as its business income? - Held that:- As decided in assessee's own case [2012 (9) TMI 331 - ITAT MUMBAI] the assessee to be the “agent” of the State Government of Maharashtra, read with the entire overwhelming documents, suggesting that there is no income to the assessee as such, and whatever is, generated, it gets deposited in the Consolidated Fund of the State. We also cannot ignore the fact that the department has been assessing the assessee as a State Government undertaking for the last three years, therefore, even this cannot be called as an afterthought and applying the ‘rule of consistency’, we hold that the department cannot be allowed to take a distinctive approach in the current year The revenue authorities were thus, clearly in error, in assessing the business income in the hands of the assessee at ₹ 63,786.58 lacs. We delete this income, as not belonging to the assessee - Decided in favour of assessee.
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