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2023 (4) TMI 1054 - HC - Income TaxAddition of secondment cost borne by assessee - cost incurred by the respondent/assessee towards personnel who were seconded from another entity could be allowed as deduction or not? - As submitted AO had rightly disallowed 50% of the cost, since services were rendered not only to GPI but also other group companies - HELD THAT:- As not disputed that the respondent/assessee has utilized the services of the personnel which were deployed by it on secondment for according professional services to GPI as well as other group companies. No dispute raised before us that the income earned by the respondent/assessee on account of professional services rendered by the employees who were deployed on secondment basis, has been offered to tax. Therefore, to our minds, for the appellant/revenue to raise this issue when the arrangement has been in place for a substantially long period of time lent’s uncertainty to an established business arrangement. Although we are conscious of the fact that the principles of res judicata do not apply to income tax proceedings, there is another principle which is equally well-entrenched, which is, the principle of consistency. [See Radhasoami Satsang v. Commissioner of Income Tax 1991 (11) TMI 2 - SUPREME COURT]. No substantial question of law arises for our consideration.
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