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2022 (10) TMI 213 - AT - Income TaxNature of receipt - Amounts received from its members towards Surety Guarantee Fund (SGF) - whether the amounts received during the year towards SGF could be brought to tax? - HELD THAT:- Tabulation is very evident that the very same receipt from members towards SGF account has been accepted as capital receipts by the AO in earlier as well as in subsequent assessment years. There is no reason to take a divergent stand by the AO during the year under consideration. The principle of consistency is required to be maintained by the Revenue. Reliance in this regard is placed on the decision of the Hon’ble Supreme Court in the case of Radhasoami Satsang [1991 (11) TMI 2 - SUPREME COURT]. The facts prevailing in earlier years and subsequent years are exactly identical to the facts in the year under consideration. Hence, we have no hesitation to hold that the receipts from members in the sum being amount received from members towards SGF as capital receipts not chargeable to tax. Accordingly, the original grounds raised by the assessee on merits are allowed. Since the relief is granted to the assessee on merits, the legal ground raised by the assessee challenging the validity of reopening need not be adjudicated and is hereby left open. Accordingly, the appeal of the assessee is allowed.
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