TMI Blog2016 (8) TMI 516X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the present appeal deserves to be allowed in favour of the assessee - TAX APPEAL NO. 1726 of 2009 - - - Dated:- 3-8-2016 - MR. KS JHAVERI AND MR. G.R.UDHWANI, JJ. FOR THE APPELLANT : MR MANISH J SHAH, ADVOCATE FOR THE OPPONENT : MR NITIN K MEHTA, ADVOCATE ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE KS JHAVERI) 1. By way of this appeal, the assessee has challenged the judgment and order of the Income Tax Appellate Tribunal, Ahmedabad Bench C , Ahmedabad (For short, the Tribunal ) in ITA No.1002/Ahd/2003 dated 23.11.2007 for the assessment year 1996-97, whereby the appeal filed by the assessee was dismissed. 2. At the time of admitting this Appeal, following question of law was framed:- Whether on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ahd/1996 by the Income Tax Appellate Tribunal, Ahmedabad (for short the ITAT). 2. The facts in brief are that the assessee is one of the Directors in Vadilal Industries Limited and Vadilal Chemical Limited. The assessee filed a return of income on 31.08.1993 for the assessment year 199394, showing a loss of ₹ 4,76,271/. Thereafter, on 16.09.1993 a revised return of income was filed in which the total income declared was 48,799/. The return of income was processed under Section 143(1)(a) of the Income Tax Act. On 19th October, 1994, the Assessing Officer passed an order under Section 143(3) of the Income Tax Act and determined the total income of the assessee at ₹ 6,19,635/. 2.1. Against the order of the Assessing Off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) any other expenditure (not being in the nature of capital expenditure) laid out or expended wholly and exclusively for the purpose of making or earning such income 4.2. In support of his contention, he relied upon the decision of the Karnataka High Court in the case of Commissioner of Income Tax Vs. Sridev Enterprises, reported in 1992 ITR 165 . 4.3. He also relied upon the decision of the Apex Court in the case of Commissioner of Income Tax Vs. Excel Industries Ltd. reported in 358 ITR 295. 5. As against this, Mr. Mehta, learned counsel for the respondent has opposed the argument of learned advocate for the appellant and contended that under the Income Tax Act, each year is an independent year and the earlier ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring the past years, whether a specific finding was recorded or not. A departure from that finding in respect of the said amounts advanced during the previous year would result in a contradictory finding; it will not be equitable to permit the Revenue to take a different stand now in respect of the amounts which were the subject matter of previous years assessments; consistency and definiteness of approach by the Revenue is necessary in the matter of recognising the nature of an account maintained by the assessee so that the basis of a concluded assessment would not be ignored without actually reopening the assessment. The principle is similar to the case where it has been held that a debt which had been treated by the Revenue as a good deb ..... X X X X Extracts X X X X X X X X Extracts X X X X
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