TMI Blog2018 (1) TMI 1289X X X X Extracts X X X X X X X X Extracts X X X X ..... or A.Y.2016-17.We find force in the said arguments of the ld. AR, when the fact remains same, unless the facts and law applicable in this relevant A.Y. is different, the AO’s action for earlier years and subsequent years must be the same in line with the doctrine of consistency. Since in the earlier assessment years and subsequent assessment year the assessee’s return of income has been accepted and even “refunds” have been allowed, treating the assessee an NBFC company as bogus need to be supported by material/evidence which the AO has not spelt out. The ld. CIT(A) has categorically held that there is no material on the basis of which it can be concluded that the assessee is fake and bogus. In the light of such a finding of ld. CIT(A), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 961 (hereinafter the Act ) Act. According to the AO, the assessee was a bogus entity and he did not accept the return filed by the assessee. Resultantly he did not raise any demand against the assessee. Aggrieved, the assessee preferred an appeal before the ld. CIT(A), who was pleased to allow the appeal and directed the AO to accept the return of income filed by the assessee. Aggrieved by the decision of the ld. CIT(A) the revenue is in appeal before us. 3. We note that the main grievance of the assessee is that the assessee is a NBFC, which means that half yearly financial need to be duly filed with the Reserve Bank of India. According to the ld. AR, the return of income for the subsequent assessment year s up to A.Y.2016-17 has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t one way or the other and parties have allowed that position to be sustained by not challenging the order, it would not be at all appropriate to allow the position to be changed in a subsequent year. 6. The principle to follow the consistency was explained by the Full Bench in the case of Hoystead vs Commissioner of Taxation [1926] AC 155 (PC). Speaking for the Judicial Committee, Lord ships had stated at page 165 as under :- Parties are not permitted to begin fresh litigations because of new views they may entertain of the law of the case, or new versions which they present as to what should be a proper apprehension by the court of the legal result either of the construction of the documents or the weight of certain circumstances. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n this assessment year need to be examined. Since in the earlier assessment years and subsequent assessment year the assessee s return of income has been accepted and even refunds have been allowed, treating the assessee an NBFC company as bogus need to be supported by material/evidence which the AO has not spelt out. The ld. CIT(A) has categorically held that there is no material on the basis of which it can be concluded that the assessee is fake and bogus. In the light of such a finding of ld. CIT(A), and the subsequent action of the AO accepting the return of income of the assessee up to A.Y.2016-17 and in the light of Rule of consistency as expounded by various case laws (supra) we therefore are inclined to set aside the order of ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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