TMI Blog2013 (8) TMI 43X X X X Extracts X X X X X X X X Extracts X X X X ..... wing decision of Radha Swami Satsang v. CIT [1991 (11) TMI 2 - SUPREME Court] and CIT v. M/S. Walchand & Co. (Pvt.) Ltd. [1967 (3) TMI 2 - SUPREME Court] - Decided against Revenue. - Income Tax Appeal No. -22 of 2009 - - - Dated:- 31-7-2013 - Hon'ble Sibghat Ullah Khan And Hon'ble Dr. Satish Chandra,JJ. For the Petitioner : D. D. Chopra For the Respondent : Rahul Shukla, S. K. Garg ORDER (Delivered by Hon'ble Dr. Satish Chandra, J) Both the appeals have been filed by the revenue under Section 260-A of the Income Tax Act, against the consolidated judgment and order dated 17.10.2008 passed by the Income Tax Appellate Tribunal in ITA No. 281/Luc/2004 and 372/Luc/2005 for the assessment years 2000-01 and 2001-02. A coor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition for each assessment year under consideration. For both the assessment years, the CIT (A) has upheld the orders passed by the A.O. Being aggrieved, the assessee has filed the appeals before the Tribunal who has deleted the additions. Not being satisfied, the department has filed the present appeals. With this background, Sri D. D. Chopra, learned counsel for the revenue at the strength of written note submits that the interest paid to M/s Gemini Financer is in excess. On specific query from the Bench, he admits that in earlier assessment year (1999-2000), the same rate of interest was accepted by the department. For this purpose, he submits that each assessment year is independent and principal of res-judicata is not applicable as pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng regard to the fair market value of the goods, services or facilities for which the payment is made or the legitimate needs of the business or profession of the assessee or the benefit derived by or accruing to him therefrom, so much of the expenditure as is so considered by him to be excessive or unreasonable shall not be allowed as a deduction." We agree with the submissions made by the learned Counsel for the appellant that the principle of res-judicata or estoppal is not applicable in the income tax proceedings, as each assessment year is an independent assessment year. But fact remains that where a fundamental aspect permeating through the different assessment years has been found as a fact one way or the other and parties have all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Hon'ble Supreme Court in the case of Parashuram Pottery Works Co. Ltd. v. Income-Tax Officer, Circle 1, Ward A, Rajkot, 106 ITR 1 at page 10 stated that: "At the same time, we have to bear in mind that the policy of law is that there must be a point of finality in all legal proceedings, that stale issues should not be reactivated beyond a particular stage and that lapse of time must induce repose in and set at rest judicial and quasi-judicial controversies as it must in other spheres of human activity." Assessments are certainly quasi-judicial and these observations equally apply. We are aware of the fact that strictly speaking resjudicata does not apply to income-tax proceedings. Again, each assessment year being a unit, what i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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