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2018 (5) TMI 347 - AT - Income TaxAddition under the head rent received from leave and licence fees and maintenance charges - Held that:- We are aware that principles of res judicata do not apply to the income tax proceedings. But, the AO's are required to explain as to why they were compelled to deviate from the path followed by their predecessor, if they want to take a new course of action for assessing the same income. Without bringing the distinguishing features that justifies taxing a particular item/head of the income or changing the heads of income in the subsequent years, as compared with the earlier year, the AO's cannot question the income shown by the assessee. Consistency is also one of the recognised rule of tax proceedings like the principle of res judicata. Secondly, the AO while assessing the income of the group concerns in the hands of the assessee had not given discount for maintenance charges. The FAA has rightly pointed out the maintenance charges have to considered as per the established principles of accountancy. AO's of the group entities have not doubted about their existence or genuineness of the income shown by them in their returns of income. Considering these facts cumulatively, we hold that the order of the FAA does not suffer from any legal or factual infirmity. - Decided against revenue
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