“rule of consistency”

Judicial DoctrinesRadhasoamiRadhasoami1,041 judgments

The decision most relied on for rule of consistency is M/s Sahara India (Farms) v. CIT & Anr. (300 ITR 403), cited in 268 judgments on BharatTax.

Leading authorities on rule of consistency

M/s Sahara India (Farms) v. CIT & Anr.

300 ITR 403 · 2008 · Supreme Court

268

citing judgments

Administrative orders must be consistent with the rules of natural justice.

DIT (E) v. Apparel Export Promotion Council

245 ITR 492 · 2000 · High Court

193

citing judgments

The rule of consistency applies when facts or legal positions remain unchanged in earlier assessment years, preventing the Revenue from adopting a divergent stance in subsequent years without new material. This ensures stability and predictability in tax assessments.

Munjal Sales Corporation v. CIT

298 ITR 298 · 2008 · Supreme Court

191

citing judgments

The Supreme Court approves the mixed fund theory, holding that no interest disallowance is warranted under section 36(1)(iii) if investments or advances are made from the assessee's own non-interest bearing funds, even when mixed funds are available. This presumption applies when non-interest bearing funds are sufficient to meet the investments.

(i) Sultana Begum v. Prem Chand Jain

1 SCC 373 · 1997 · Reported

187

citing judgments

A statute must be read as a whole, construing every clause with reference to its context and other provisions, to determine the legislature's real intention and ensure a consistent enactment. This principle, known as "ex visceribus actus," helps avoid inconsistencies within the law.

Berger Paints India Ltd. v. CIT

266 ITR 99 · 2004 · Supreme Court

181

citing judgments

The Revenue cannot take a conflicting stand from what it had earlier accepted in a previous assessment year without compelling justification. This principle of consistency applies to various issues, including the treatment of customs duty in closing inventory.

Radhasoami Satsang v. CIT

244 ITR 734 · 2000 · High Court

168

citing judgments

The Revenue is bound by the rule of consistency and cannot adopt a divergent position in a subsequent assessment year unless there is a change in facts or law.

Krishak Bharati Cooperative Ld v. DCIT

23 Taxmann.com 265 · 2012 · High Court

147

citing judgments

The rule of consistency does not override the correct application of law and should not be applied if it leads to an anomalous outcome.

Bharat Sanchar Nigam Ltd. v. Union of India

282 ITR 273 · 2006 · Supreme Court

136

citing judgments

The rule of consistency requires that in the absence of any change in material facts or law, a different view or decision on an issue cannot be adopted for subsequent assessment years, thus ensuring uniformity in tax assessments.

Judgments citing rule of consistency

Australia and New Zealand Banking Group Ltd, Mumbai vs. DCIT 1(1)(2), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 1106/MUM/2017[2012-13]Status: DisposedITAT Mumbai13 Apr 2022AY 2012-13

Section 143(3)Section 144C(5)

that the same transactions were accepted by the ld. TPO upto A.Y.2012-13 in the case of the assessee. Hence, even going by the rule of consistency as has been held by the Hon’ble Supreme Court in the 9 M/s. Australia and New Zealand Banking Group Ltd., case of Radhasoami

Union Bank of India, Mumbai vs. Dy CIT Ltu-2, Mumbai

In the result, appeals filed by the assessee for assessment years 2009-10

ITA 1580/MUM/2020[UNION BANK OF INDIA]Status: DisposedITAT Mumbai07 Apr 2022

Bench: Shri Vijay Pal Rao & Shri Gagan Goyal

Section 14ASection 154Section 36(1)

concur with the view of Ld. CIT(A), in this regard and dismiss ground no.1 raised by the assessee.” To maintain the rule of consistency, we follow the earlier order of this Tribunal on this issue and consequently ground 1.1 of the appeal is dismissed. 12. Ground 2.1 is regarding

Media Research Users Council, Mumbai vs. ADIT (E) 1(1), Mumbai

Appeal of the revenue is dismissed

ITA 6459/MUM/2012[2006-07]Status: DisposedITAT Mumbai29 Mar 2022AY 2006-07

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Pavan Kumar Gadale, Hon'Ble & Media Research Users Council V. Addl. Dit(E)– 1(1) 128, Tv Industrial Estate Piramal Chambers, Lalbaug S.K. Ahire Marg, Worli Mumbai – 400 012 Mumbai – 400012 Pan: Aaatm5433F (Appellant) (Respondent) Media Research Users Council V. Addl. Dit(E)– Range 1 128, Tv Industrial Estate Piramal Chambers, Lalbaug S.K. Ahire Marg, Worli Mumbai – 400 012 Mumbai – 400012 Pan: Aaatm5433F (Appellant) (Respondent)

For Appellant: Shri Niraj ShethFor Respondent: Shri C.T. Mathews

Section 11Section 12ASection 13Section 13(1)(c)Section 13(3)(e)Section 25

Reliance is placed on the judgment in the case of Radhasoami Satsang v. CIT [1992] 193 ITR 321(SC) wherein it was held rule of consistency must be followed. This judgment has been relied upon in the case of the assessee by the Hon'ble Tribunal. Further, in the case

Media Research Users Council, Mumbai vs. Addl DIT (E) RG 1, Mumbai

Appeal of the revenue is dismissed

ITA 7108/MUM/2010[2007-08]Status: DisposedITAT Mumbai29 Mar 2022AY 2007-08

For Appellant: Shri Niraj ShethFor Respondent: Shri C.T. Mathews

Section 11Section 12ASection 13Section 13(1)(c)Section 13(3)(e)Section 25

Sanskruti Vistarak Sangh, Mumbai vs. Dy CIT CPC, Bangalore

ITA 641/MUM/2020[2015-16]Status: DisposedITAT Mumbai25 Mar 2022AY 2015-16

Bench: Shri Kuldip Singh & Shri Gagan Goyalassessment Year: 2015-16

For Appellant: Shri Rajesh P. Shah, A.RFor Respondent: Shri Amol Kirtane, D.R

Section 11(2)Section 12ASection 143(1)Section 154

order dated 25.02.2020 available at page 41 to 42 of the paper book. In these circumstances, Revenue Authorities were required to follow the “rule of consistency” instead of generating unnecessary litigation. 10. So in these circumstances, we are of the considered view that rectification application filed by the assessee before

M/S Mysore Race Club Limited, Mysuru vs. The Deputy Commissioner of Income Tax Circle-1(2), Mysuru

In the result, the appeal filed by assessee stands allowed for statistical purposes

ITA 1480/BANG/2017[2011-12]Status: DisposedITAT Bangalore14 Mar 2022AY 2011-12

Bench: Shri. B.R. Baskaran & Smt. Beena Pillaiassessment Year : 2011-12 M/S. Mysore Race Club The Deputy Ltd., Commissioner Of Income Post Box No. 11, Tax, Race Course Road, Vs. Circle – 1 [2], Mysuru – 570 010. Mysuru. Pan: Aabcm5167G Appellant Respondent Assessee By : Shri S.V. Ravishankar, Advocate Revenue By : Shri Janardhan, Addl. Cit (Dr) Date Of Hearing : 04-03-2022 Date Of Pronouncement : 14-03-2022 Order Per Beena Pillaipresent Appeal Is Filed By Assessee Against The Order Dated 28/10/2016 Passed By Ld.Cit(A), Mysore For Assessment Year 2011- 12 On Following Grounds Of Appeal: “1. The Order Of The Learned Commissioner Of Income-Tax [Appeals] In So Far As They Are Against The Appellant Is Opposed To Law, Equity & Weight Of Evidence, Probabilities, Facts & Circumstance Of The Case. 2. The Appellant Denies Itself Liable To Be Assessed Over & Above The Returned Income By It On The Facts & Circumstances Of The Case. 3. The Learned Commissioner Of Income-Tax [Appeals] Failed To Appreciate That The Amount Collected From Punters For Disbursement As Dividend To Punters Stands Diverted At Source By Virtue Of Overriding Title On The Facts & Circumstances Of The Case. [I]. The Learned Commissioner Of Income-Tax [Appeals] Failed To Appreciate That The Totalizator Collection From The Punters Stands Diverted At Source For Disbursement To Dividend To Punters On The Facts & Circumstances Of The Case. [Ii]. The Learned Commissioner Of Income-Tax [Appeals] Failed To Appreciate That Method Of Accounting Adopted By The Appellant Were Accepted By The Revenue From Past

For Appellant: Shri S.V. Ravishankar, AdvocateFor Respondent: Shri Janardhan, Addl. CIT (DR)

Section 40Section 40A

accounting adopted by the appellant were accepted by the revenue from past Page 2 of 14 ITA No. 1480/Bang/2017 many years and the rule of consistency has to be followed, further the learned Assessing Officer has deviated from the stand taken consistently and accepted for earlier years on the facts

Asst CIT (Ltu) 2, Mumbai vs. Asian Paints Ltd, Mumbai

In the result, appeal filed by the assessee is partly allowed as directed above

ITA 4675/MUM/2015[2010-11]Status: DisposedITAT Mumbai23 Feb 2022AY 2010-11

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm Asst. Commissioner Income Asian Paints Ltd. Tax, (Large Taxpayer Unit)-2, 6A Shanti Nagar, Cuffe Parade,, 29 Th Floor, Santacruz (East), World Trade Centre, Cuffee Mumbai-400 055 Vs. Parade, Mumbai-400 005 (Respondent) (Appellant) Pan No. Aaaca3622K Asian Paints Ltd. Vs. Addl. Commissioner Of 6A Shanti Nagar, Income Tax-Ltu Cuffe Parade,, 29 Th Floor, Santacruz (East), Mumbai-400 055 World Trade Centre, Cuffee Parade, Mumbai-400 005 (Appellant) (Respondent) Appellant By : Shri Milind Chavan, Sr Dr Respondent By : Shri Madhur Agrawal, Advocate Date Of Hearing: 09.12.2021 Date Of Pronouncement : 23.02 .2022 O R D E R Per Prashant Maharishi, Am: 01. These Are Cross Appeals Filed By Asian Paints Ltd [Appellant/Assessee] & The Additional Commissioner Of Income Tax – Large Taxpayers Unit

For Appellant: Shri Milind Chavan, Sr DRFor Respondent: Shri

Section 14ASection 35

account of such trip scheme has never been disallowed by the Assessing Officer except for the impugned assessment year. Therefore, even applying the rule of consistency, the expenditure claimed by the assessee has to be allowed. Accordingly, we do not find any infirmity in the decision of learned Commissioner (Appeals

Deputy Commissioner of Income Tax Circle-1(1)(2), Bangalore vs. M/S Bharath Energy Venture Pvt Ltd, Bangalore

In the result, both the appeals are dismissed

ITA 2418/BANG/2018[2013-14]Status: DisposedITAT Bangalore23 Feb 2022AY 2013-14

Bench: Shri N.V. Vasudevan & Shri B. R. Baskaran

For Appellant: NoneFor Respondent: Shri. Sankar Ganesh K, JCIT(DR)(ITAT), Bengaluru

Section 28Section 29Section 3

identical claim for allowing loss in identical circumstances, has been allowed. We are of the view that following the rule of consistency, the claim of the assessee was rightly accepted by the CIT(A). We, therefore, uphold the order of the CIT(A) and dismiss the appeal of the Revenue

Deputy Commissioner of Income Tax Circle-1(1)(2), Bangalore vs. M/S Bharath Energy Venture Pvt Ltd, Bangalore

In the result, both the appeals are dismissed

ITA 2417/BANG/2018[2012-13]Status: DisposedITAT Bangalore23 Feb 2022AY 2012-13

Bench: Shri N.V. Vasudevan & Shri B. R. Baskaran

For Appellant: NoneFor Respondent: Shri. Sankar Ganesh K, JCIT(DR)(ITAT), Bengaluru

Section 28Section 29Section 3

DCIT(E)-2(1), Mumbai vs. Nehru Centre, Mumbai

In the result, appeal filed by the revenue is dismissed

ITA 7461/MUM/2018[2010-11]Status: DisposedITAT Mumbai04 Feb 2022AY 2010-11

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Pavan Kumar Gadale, Hon'Bledcit (E) – 2(1) V. Nehru Centre Room No. 519, 5Th Floor Discovery Of India Building Piramal Chambers, Lalbaug 13Th Floor, Dr. Annie Besant Road Worli, Mumbai - 400018 Mumbai – 400 012 Pan: Aaatn2536J (Appellant) (Respondent) Assessee By : Shri Dilip Thakkar Department By : Shri Dilipkumar Shah

For Appellant: Shri Dilip ThakkarFor Respondent: Shri Dilipkumar Shah

Section 11Section 143(2)Section 2(15)

including capital expenditure amounting to ₹.1,22,28,971/ as application of income contrary to the provisions of the Act. 9) Other submissions RULE OF CONSISTENCY AO Failed to follow Principle of Consistency. The provisions of Sec 11(4A), were introduced in the I.T Act w.e.f Assessment year 1976 onwards ... matter." While deciding the appeal, the Hon'ble Court had taken note of the proceedings of the earlier AY.s. As the rule of consistency has not followed without bringing distinguishing features of the year under appeal, as compared to the facts 17 Nehru Centre of the earlier years

Hapur Pilkhuwa Development Authority, Hapur vs. ACIT, Exemption Cirlce, Ghaziabad

ITA 4125/DEL/2017[2012-13]Status: DisposedITAT Delhi04 Feb 2022AY 2012-13

Bench: Shri G.S. Pannu & Shri Kuldip Singhassessment Year: 2012-13

For Appellant: Shri Akhilesh Kumar, AdvocateFor Respondent: Shri S.N. Pandey, Sr. DR

Section 10Section 11Section 12A

been granted to the assessee in earlier years at the level of ld. CIT(A) which has been accepted by the Revenue. So, “rule of consistency” is also applicable to this issue. Consequently, we decide ground No. 11 in favour of the assessee. 14. In view of what has been

Gopal Das Estates & Housing Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is partly allowed for

ITA 2576/DEL/2015[2011-12]Status: DisposedITAT Delhi04 Feb 2022AY 2011-12

Bench: Shri G.S.Pannu & Shri Kul Bharat

Section 143(3)Section 14ASection 23

Ld.CIT(A) as the Revenue itself has not made any disallowance in other years. Moreover, no reason is assigned for not following Rule of Consistency. The Revenue is under legal obligation to be consistent in its approach regarding taxability of any item. It cannot be purely on the whims

DCIT, New Delhi vs. M/S. Jagson International Ltd., New Delhi

In the result, ITA.No.276/Del

ITA 276/DEL/2017[2014-15]Status: DisposedITAT Delhi31 Jan 2022AY 2014-15

Bench: Shri R.K. Panda & Shri Narendra Kumar Choudhary

For Appellant: Shri Rahul PrabhakarFor Respondent: Shri P.C. Maurya, CIT

Section 115JSection 14A

Supreme Court in the case of Radhaswami Satsang Vs. CIT reported in 193 ITR 321 (SC), no disallowance should be made following the rule of consistency. Various other decisions were also brought to the notice of the learned CIT (Appeals). 12.3 Based on the arguments advanced by the assessee

DCIT, New Delhi vs. M/S. Jagson International Ltd., New Delhi

In the result, ITA.No.276/Del

ITA 1002/DEL/2016[2013-14]Status: DisposedITAT Delhi31 Jan 2022AY 2013-14

Bench: Shri R.K. Panda & Shri Narendra Kumar Choudhary

For Appellant: Shri Rahul PrabhakarFor Respondent: Shri P.C. Maurya, CIT

Section 115JSection 14A

DCIT, New Delhi vs. M/S. Jagson International Ltd., New Delhi

In the result, ITA.No.276/Del

ITA 1001/DEL/2016[2012-13]Status: DisposedITAT Delhi31 Jan 2022AY 2012-13

Bench: Shri R.K. Panda & Shri Narendra Kumar Choudhary

For Appellant: Shri Rahul PrabhakarFor Respondent: Shri P.C. Maurya, CIT

Section 115JSection 14A

ACIT-8 (1) (1), Mumbai vs. Royal Western India Turf Club Limited, Mumbai

ITA 5754/MUM/2019[2016-17]Status: DisposedITAT Mumbai24 Jan 2022AY 2016-17

Bench: Shri Rajesh Kumar () & Shri Ravish Sood () Acit-8(1)(1) M/S Royal Western Turf Club Room No. 624, 6Th Floor, Vs. Limited, Mahalaxmi Race Aaykar Bhavan, M.K. Marg, Course, K.K. Marg, Mahalaxmi Mumbai – 400 020 Mumbai – 400 034

For Appellant: Shri Salil Kapoor, A.RFor Respondent: Shri Mahendra Ahuja. Sr. D.R

Section 143(1)Section 143(2)Section 143(3)

until contrary facts are brought on record by the Revenue, no U-turn is permissible. The learned Assessing Officer is bound by rule of consistency. The following cases support the case of the assessee:- i. Parshuram Pottery Works Ltd. vs ITO106 ITR 1 (SC) ii. Security Printers

ACIT(E), Circle-1(1), New Delhi vs. Divya Jyoti Jagrati Sansthan, New Delhi

In the result, the appeal filed by the Revenue is dismissed

ITA 4188/DEL/2017[2012-13]Status: DisposedITAT Delhi24 Jan 2022AY 2012-13

Bench: Shri N.K. Billaiya & Shri Amit Shukla

For Appellant: Shri Sudesh Garg, AdvocateFor Respondent: Ms. Yagyasaini Kakkar, CIT DR

Section 11Section 11(1)Section 115BSection 12ASection 133(6)Section 143(3)Section 2(15)Section 32Section 32(1)Section 80G

years u/s 143(3) and it has 14 been categorically found that provisions of seciton115BBC is not applicable, therefore, in view of the rule of consistency, such donations cannot be disallowed. 17. In the result, the appeal filed by the Revenue is dismissed. Order was pronounced in open court

ACIT, New Delhi vs. M/S. Lepro Herbals Pvt. Ltd., New Delhi

In the result, the appeal filed by the Revenue is dismissed

ITA 111/DEL/2016[2010-11]Status: DisposedITAT Delhi18 Jan 2022AY 2010-11

Bench: Shri R.K. Panda & Ms. Suchitra Kamble

For Appellant: Dr. Rakesh Gupta, AdvocateFor Respondent: Shri Pravin Rawal, CIT-DR

Section 132Section 132(1)Section 145

rejecting the book results and estimating the profit which is not justified. Referring to the following decisions, he submitted that in view of Rule of consistency, the addition made by the Assessing Officer is not justified and the ld. CIT(A) has rightly deleted the addition. 1. Radhasoami Satsang ... reply of the assessee and no addition has been made in the order passed u/s 143(3) of the Act, therefore, following the rule of consistency, no addition can be made for the impugned assessment year, especially when no other corroborative 32 ITA.No.111/Del./2016 M/s. Lepro Herbals

Govt. Senior Secondary School, Bhiwani vs. JCIT, TDS Range, Karnal

In the result, all the appeals filed by the assessees are allowed

ITA 6076/DEL/2018[2010-11]Status: DisposedITAT Delhi13 Jan 2022AY 2010-11

Bench: Shri R.K. Panda & Ms. Suchitra Kamble

Section 154Section 200ASection 234ESection 272(2)(k)Section 272A(2)(K)

opinion that these can be divided broadly into three categories i.e. a) Provisions of section 234 E are constitutionally valid b) Rule of consistency is not applicable and c) Late of fee u/s. 234 E is leviable for defaults of period in filing the TDS/ TCS statements/ returns even ... have been held to be constitutionally valid which is not the dispute before us. So far as the argument of Ld. DR on rule of consistency is concerned, the same in our opinion is not absolute but in the present case we are faced with a situation which has been

Govt. Senior Secondary School, Bhiwani vs. JCIT, TDS Range, Karnal

In the result, all the appeals filed by the assessees are allowed

ITA 6075/DEL/2018[2008-09]Status: DisposedITAT Delhi13 Jan 2022AY 2008-09

Bench: Shri R.K. Panda & Ms. Suchitra Kamble

Section 154Section 200ASection 234ESection 272(2)(k)Section 272A(2)(K)