TMI Blog2018 (1) TMI 1564X X X X Extracts X X X X X X X X Extracts X X X X ..... annot be open to them to challenge the same in the subsequent assessment year. As noted by Hon ble Supreme Court, in the case of CIT vs. Radhasoami Satsang 1991 (11) TMI 2 - SUPREME COURT , while strictly speaking, res judicata does not apply to income tax proceedings , where a fundamental aspect permeating through the different assessment years has been found as a fact one way or the other and parties have allowed that position to be sustained by not challenging the order, it would not at all be appropriate to allow the position to be changed in a subsequent year - Thus the deletion of the TP adjustment on account of interest on loan is upheld. TP adjustment on account of corporate guarantee for working capital and Corporate guar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 30/Ahd/2014 are cross appeals by the Revenue and the Assessee preferred against the order of Ld. CIT(A)-XIV, Ahmedabad dated 04.07.2014 pertaining to A.Y. 2010-11. 2. Both these appeals were heard together and are disposed of by this common order for the sake of convenience. ITA No. 2791/Ahd/2014 Revenue s appeal 3. The first grievance relates to the part relief given on account of TP adjustment in respect of interest on loans to AEs and on account of corporate guarantee . 4. At the very outset, the ld. counsel for the assessee stated that the impugned issues have been decided by the Tribunal in assessee s own case in A.Y. 2009- 10. The ld. counsel placed the order of the Co-ordinate Bench for consideration. The ld. D.R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... res judicata does not apply to income tax proceedings , where a fundamental aspect permeating through the different assessment years has been found as a fact one way or the other and parties have allowed that position to be sustained by not challenging the order, it would not at all be appropriate to allow the position to be changed in a subsequent year . 26. In view of these discussions, grievance raised by the Assessing Officer is not maintainable, and is dismissed as such. 6. As no distinguishing decision has been brought on record, respectfully following the findings of the Co-ordinate Bench, the deletion of the TP adjustment on account of interest on loan is upheld. 7. Similarly, the TP adjustment on account of corporate g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ademic and does not call for any adjudication by us. 25.Ground no. 3 in the Assessing Officer s appeal is thus dismissed as infructuous, and ground nos. 4,5,6 and 7 in the assessee s appeal are thus allowed in the terms indicated above. 6. We see no reasons to take any other view of the matter that the view so taken, by the co-ordinate bench, for the immediately preceding assessment year. We, therefore, uphold the grievances of the assessee and delete the impugned ALP adjustments. 7. As we have held that no such ALP adjustment is permissible, grievances raised by the Assessing Officer, with respect to quantification of ALP adjustment, are dismissed as infructuous. 8. As we part with the matter, we may add that a substantial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssue at Para 38 while deciding ground no. 7 of Revenue s appeal wherein the Co-ordinate Bench has decided the issue in favour of the assessee by drawing support from the decision of the Hon ble High Court of Gujarat in the case of Alembic Ltd. in ITA No. 1249 of 2014. 14. As no distinguishing decision has been brought on record in favour of the revenue. Respectfully following the findings of the Co-ordinate Bench, we decline to interfere. Ground no. 3 is also dismissed. 15. In the result, the appeal filed by the Revenue is dismissed. ITA No. 2530/Ahd/2014 Assessee s appeal 16. Ground no. 1 relates to the disallowance on account of late payment of employees contribution to Provident Fund and ESI. 17. This issue is no m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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