Section 255(4) of the Income Tax Act

The decision most relied on for Section 255(4) is Berger Paints India Ltd. v. CIT (266 ITR 99), cited in 181 of the 39 judgments on BharatTax that turn on this section.

Leading authorities on Section 255(4)

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.

CEPT v. Shri Lakshmi Silk Mills Ltd.
20 ITR 451 · 1951 · Supreme Court
59
citing judgments

Income derived from leasing a business asset is considered business income under Section 28 of the Income-tax Act, 1961.

CIT v. Seshasayee Industries Ltd. (Mad)
242 ITR 691 · High Court
34
citing judgments

A wrong decision, even if followed in earlier years, cannot be perpetuated on the basis of the principle of consistency if it contravenes the correct law and facts.

Krishak Bharati Cooperative Ltd. v. Deputy Commissioner of Income Tax
350 ITR 24 · 2013 · High Court
23
citing judgments

The rule of consistency should not be applied to perpetuate an anomaly or a patently wrong view taken in the past.

Hotels P. Ltd. v. DCIT
373 ITR 494 · 2015 · High Court
21
citing judgments

Rental income from letting out a commercial complex is assessed as income from house property, not business income, where the assessee is not engaged in any business activity.

Berger Paints India Ltd. v. CIT
151 Taxmann 202 · 2006 · High Court
9
citing judgments
Shibani S. Bhojwani v. DCIT
166 ITD 488 · 2017 · ITAT
8
citing judgments
CIT (Exemption) v. Swami Omkaramdas Charitable Trust
150 Taxmann.com 428 · 2023 · High Court
5
citing judgments
Keyaram Hotels (P.) Ltd. v. DCIT, Company Circle II(4), Chennai
63 Taxmann.com 301 · 2015 · Supreme Court
4
citing judgments

Judgments on Section 255(4)

Surendra Pal Singh Sahni, Kota vs. Asstt. Commissioner of Income Tax, Central Circle, Kota

The appeals of the assessee are allowed

ITA 450/JPR/2024[2005-06]Status: DisposedITAT Jaipur28 Sept 2026AY 2005-06

Bench: Smt. Annapurna Gupta & Shri T. R. Senthil Kumar

For Appellant: Sh. C.M. Birla, CAFor Respondent: Ms. Namita Patel, JCIT
Section 147Section 154Section 255(4)

Surendra Pal Singh Sahni, Kota vs. Asstt. Commissioner of Income Tax, Central Circle, Kota

The appeals of the assessee are allowed

ITA 444/JPR/2024[2005-06]Status: DisposedITAT Jaipur28 Sept 2026AY 2005-06

Bench: Smt. Annapurna Gupta & Shri T. R. Senthil Kumar

For Appellant: Sh. C.M. Birla, CAFor Respondent: Ms. Namita Patel, JCIT
Section 147Section 154Section 255(4)

Vikas Choudhary, Delhi vs. ACIT, Circle-67(1), New Delhi

In the result, Ground no. 3 as raised by the assessee deserves

ITA 4911/DEL/2025[2012-13]Status: DisposedITAT Delhi22 Sept 2026AY 2012-13

Bench: Shri Stabeer Singh Godara & Shri Krinwant Sahay

For Appellant: AAEPC7745E
Section 147Section 148Section 69A

Azure Power Solar Energy Private Limited, Mauritius vs. Assistant Commissioner of Income Tax, Delhi

ITITA 38/DEL/2026[2023-24]Status: DisposedITAT Delhi09 Sept 2026AY 2023-24

Bench: Shri Satbeer Singh Godara & Shri Amitabh Shuklait(It)A Nos. 37/Del/2026 Assessment Year: 2023-24

For Appellant: Sh. Ajay Vohra, Sr. Adv., with Sh. Sanchit Bansal &For Respondent: Dr. Shalini Verma, CIT(DR)
Section 144C(13)

Azure Power Energy Limited, Mauritius vs. Assistant Commissioner of Income Tax, Delhi

ITITA 37/DEL/2026[2023-24]Status: DisposedITAT Delhi09 Sept 2026AY 2023-24

Bench: Shri Satbeer Singh Godara & Shri Amitabh Shuklait(It)A Nos. 37/Del/2026 Assessment Year: 2023-24

For Appellant: Sh. Ajay Vohra, Sr. Adv., with Sh. Sanchit Bansal &For Respondent: Dr. Shalini Verma, CIT(DR)
Section 144C(13)

Harpreet Singh Makhija, Ahmedabad vs. The Income Tax Officer, Ward-3(3)(2), Ahmedabad

In the result, the appeal filed by the assessee is treated as partly allowed for statistical purposes

ITSSA 137/AHD/2023[2012-13]Status: DisposedITAT Ahmedabad18 Aug 2026AY 2012-13

Bench: Dr. B.R.R. Kumaras “” It(Ss)A No.137/Ahd/2023 (Assessment Year: 2012-13) Harpreet Singh Makhija, Vs. Income Tax Officer, 14, Kadamb Bungalows, Ward – 3(3)(2), Near Arbindo Society, Pratyakshkar Bhawan, Vastrapur, Behind Stock Exchange, Ahmedabad – 380 054. Near Panjarapole Cross Roads, (Gujarat) Ambawadi, [Pan – Amfpm 8575 M] Ahmedabad – 380 014. (Appellant) .. (Respondent) Assessee Represented By : Shri Sakar Sharma, Ar Revenue Represented By : Shri Kiran Unavekar, Cit-Dr Date Of Hearing 17.06.2026 आदेश/O R D E R This Matter Has Been Placed Before Me Asunder The Provisions Of Section 255(4) Of The Income-Tax Act, 1961 ("The Act"), Pursuant To A Reference Made By The Hon'Ble, Income Tax Appellate Tribunal, On Account Of A Difference Of Opinion Between The Ld. & The Ld.Constituting The Ahmedabad Bench In The Captioned Appeal Relating To Assessment Year 2012-13. 2. The Hon'Ble, Itat, Vide Order Dated 21.04.2026, Has Referred The Matter To The(Az) For Expressing Opinion Under Section 255(4) Of The Act. Pursuant Thereto, Notices Were Issued To Both The Parties. The Matter Was Initially Fixed For Hearing On 27.04.2026 & Was Finally Heard On 17.06.2026. Shri Sakar Sharma, Ld. Authorized Representative, Appeared On Behalf Of The Assessee, Whereas Shri Kiran Unavekar, Ld. Cit (Dr), Represented The Revenue.

Section 132Section 143(3)Section 153CSection 255(4)Section 69

Ramji Vaish, Allahabad vs. ACIT, Allahabad

In the result, the appeal of the assessee is allowed

ITA 371/ALLD/2018[2011-12]Status: DisposedITAT Allahabad09 Jun 2026AY 2011-12

Bench: Shri. Sudhanshu Srivastava & Shri Nikhil Choudharya.Y. 2011-12 Ramji Vaish, Assistant Commissioner Of 86, New Baiharana, Income Tax, Central Circle, Allahabad-211003, Uttar V. Allahabad, 38, Mahatma Gandhi Pradesh Marg, Allahabad-211001, Uttar Pradesh (Assessee) (Respondent) Appellant By: Sh. Praveen Godbole, C.A. Respondent By: Sh. A.K. Singh, Sr. Dr Date Of Hearing: 11.03.2026 Date Of Pronouncement: 09.06.2026

For Appellant: Sh. Praveen Godbole, C.AFor Respondent: Sh. A.K. Singh, Sr. DR
Section 220Section 220(1)Section 221(1)Section 250Section 255(4)

M/S. Subhash Stone Products, Sonebhadra vs. DCIT, Central Circle, Allahabad

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

ITA 502/ALLD/2015[2005-06]Status: DisposedITAT Allahabad09 Jun 2026AY 2005-06

Bench: Shri. Sudhanshu Srivastava & Shri Nikhil Choudharya.Y. 2005-06 M/S. Subhash Stone Product Bari The Deputy Dalla, Sonebhadra, U.P. Commissioner Of Income Also At Hotel Ravisha Continental, V. Tax, Central Circle, 57-A, P.D. Tandon Marg, Civil Allahabad,U.P. Lines, Allahabad, U.P. Pan-Aaufs3655B (Assessee) (Respondent) Appellant By: Sh. Praveen Godbole, C.A. Respondent By: Sh. Amalendu Nath Mishra, Cit Dr Date Of Hearing: 11.03.2026 Date Of Pronouncement: 09.06.2026

For Appellant: Sh. Praveen Godbole, C.AFor Respondent: Sh. Amalendu Nath Mishra, CIT
Section 143(3)Section 153CSection 250Section 255(4)Section 40

Roopa Rai Jaiswal, Allahabad vs. Dc/ACIT (Central), Allahabad

The appeal of the assessee stands allowed

ITA 17/ALLD/2023[2018-19]Status: DisposedITAT Allahabad05 Jun 2026AY 2018-19

Bench: Shri. Sudhanshu Srivastava & Shri Nikhil Choudharyassessment Year: 2018-19 Mrs Roopa Rai Jaiswal V. The Dc/Acit (Central) 186/167, Old Katra Allahabad Allahabad (U.P) Tan/Pan:Agopr4913R (Appellant) (Respondent) Appellant By: Shri R. C. Agrawal, Advocate Respondent By: Shri A. K. Singh, D.R. Order Under Section 255(4) Of The Income Tax Act, 1961

For Appellant: Shri R. C. Agrawal, AdvocateFor Respondent: Shri A. K. Singh, D.R
Section 133ASection 255(4)Section 44A

DCIT, Circle 52(1), New Delhi vs. Bhupinder Singh Bhalla, New Delhi

Appeal of the revenue is dismissed

ITA 2964/DEL/2023[2016-17]Status: DisposedITAT Delhi13 Feb 2026AY 2016-17

Bench: Shri Mahavir Singh, Vice Presdient (), Shri Vimal Kumar & Shri Brajesh Kumar Singh

For Respondent: Dr Rakesh Gupta, Adv. (Virtual) S/Shri
Section 142(1)Section 142(3)Section 143(1)Section 143(2)Section 143(3)Section 250Section 54B

Zacharia Varughese, Kottayam vs. ITO Ward 5, Kottayam

Appeal of the assessee is partly allowed for statistical purposes

ITA 131/COCH/2023[2015-16]Status: DisposedITAT Cochin12 Jan 2026AY 2015-16

Bench: Shri Prashant Maharishi & Shri Soundararajan K.Assessment Year : 2015-16

For Appellant: Shri Thomas Joseph, CAFor Respondent: Ms. Leena Lal, Sr. DR
Section 10(4)Section 10(4)(ii)Section 143(3)Section 255(4)Section 69

M/S. India Exposition Mart Ltd., New Delhi vs. DCIT, New Delhi

Appeal of the Assessee stands allowed

ITA 1079/DEL/2016[2009-10]Status: DisposedITAT Delhi12 Aug 2025AY 2009-10

Bench: Shri Mahavir Singhshri Kuldip Singh & Shri Anadee Nath Misshra, Accountnat Member Shri Vikas Awasthy & Shri Brajesh Kumar Singh

For Appellant: Shri A. K. Khanna, C. A./NoneFor Respondent: Shri M.S. Nethrapal, CIT-DR
Section 139(1)Section 147Section 148

I.T.O. - 9(2)(3), Mumbai vs. Crest Paper Mills Ltd., Mumbai

Accordingly, the appeal of the Revenue is liable to be dismissed

ITA 6126/MUM/2017[2012-13]Status: DisposedITAT Mumbai30 Jun 2025AY 2012-13

Bench: Shri Amit Shukla () & Shri Om Prakash Kant () Assessment Year: 2012-13 Income Tax Officer, Ward -9(2)(3) M/S. Crest Paper Mills Ltd. Mumbai, 2Nd Floor, Tarun Plastic Room No. 601A, 6Th Floor, Aayakar Vs. Compound, Mogra Village, Bhavan, M.K.Road, Andheri (E), Mumbai- 400 020. Mumbai- 400 069 Pan No. Aaacc 4343 D Appellant Respondent

For Appellant: Mr. Ajay R SinghFor Respondent: Mr. Himanshu Joshi, CIT-DR
Section 255(4)

Gowtham Residential Junior College, Vijayawada vs. ACIT, Central Circle, Vijayawada

In the result, appeals of the assessee are allowed

ITA 26/VIZ/2022[2013-14]Status: DisposedITAT Visakhapatnam24 Jun 2025AY 2013-14

Bench: Shri Ravish Sood, Hon’Ble & Shri S Balakrishnan, Hon’Bleआयकर अपीलसं./I.T.A.Nos.25 & 26/Viz/2022 (निर्धारण वर्ा/ Assessment Years: 2017-18 & 2013-14) Gowtham Residential Junior College V. Asst. Cit-Central Circle Vijayawada 1-87, Gudavalli Village Gudavalli, Vijayawada – 521104 Andhra Pradesh [Pan: Aaefg4399L] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent)

Section 255(4)

Gowtham Residential Junior College, Vijayawada vs. ACIT, Central Circle, Vijayawada

In the result, appeals of the assessee are allowed

ITA 25/VIZ/2022[2017-18]Status: DisposedITAT Visakhapatnam24 Jun 2025AY 2017-18

Bench: Shri Ravish Sood, Hon’Ble & Shri S Balakrishnan, Hon’Bleआयकर अपीलसं./I.T.A.Nos.25 & 26/Viz/2022 (निर्धारण वर्ा/ Assessment Years: 2017-18 & 2013-14) Gowtham Residential Junior College V. Asst. Cit-Central Circle Vijayawada 1-87, Gudavalli Village Gudavalli, Vijayawada – 521104 Andhra Pradesh [Pan: Aaefg4399L] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent)

Section 255(4)

The ACIT, Central Circle-1(3), Ahmedabad vs. Smt. Harshaben B. Popat, Ahmedabad

ITSSA 27/AHD/2020[2015-16]Status: DisposedITAT Ahmedabad25 Apr 2025AY 2015-16

Bench: Shri Siddhartha Nautiyal & Shri Narendra Prasad Sinhai.T(Ss).A. No.535/Ahd/2019 (Assessment Year: 2011-12) Assistant Commissioner Of Vs. M/S. Benefit Tradelink Ltd., Income Tax, 508, Setu Sevanti, Opp. Central Circle-1(3), Bawarchi Restaurant, Off. Ahmedabad C.G. Road, Ahmedabad [Pan No.Aadcb3468K] (Appellant) .. (Respondent) I.T(Ss).A. No.506/Ahd/2019 (Assessment Year: 2012-13) Assistant Commissioner Of Vs. M/S. Benefit Tradelink Ltd., Income Tax, 508, Setu Sevanti, Opp. Central Circle-1(3), Bawarchi Restaurant, Off. Ahmedabad C.G. Road, Ahmedabad [Pan No.Aadcb3468K] (Appellant) .. (Respondent) I.T(Ss).A. No.507/Ahd/2019 (Assessment Year: 2013-14) Assistant Commissioner Of Vs. M/S. Benefit Tradelink Ltd., Income Tax, 508, Setu Sevanti, Opp. Central Circle-1(3), Bawarchi Restaurant, Off. Ahmedabad C.G. Road, Ahmedabad [Pan No.Aadcb3468K] (Appellant) .. (Respondent)

Smt. Harshaben Bharatbhai Popat, Ahmedabad vs. The DCIT, Central Circle-1(3), Ahmedabad

ITSSA 20/AHD/2020[2015-16]Status: DisposedITAT Ahmedabad25 Apr 2025AY 2015-16

Bench: Shri Siddhartha Nautiyal & Shri Narendra Prasad Sinhai.T(Ss).A. No.535/Ahd/2019 (Assessment Year: 2011-12) Assistant Commissioner Of Vs. M/S. Benefit Tradelink Ltd., Income Tax, 508, Setu Sevanti, Opp. Central Circle-1(3), Bawarchi Restaurant, Off. Ahmedabad C.G. Road, Ahmedabad [Pan No.Aadcb3468K] (Appellant) .. (Respondent) I.T(Ss).A. No.506/Ahd/2019 (Assessment Year: 2012-13) Assistant Commissioner Of Vs. M/S. Benefit Tradelink Ltd., Income Tax, 508, Setu Sevanti, Opp. Central Circle-1(3), Bawarchi Restaurant, Off. Ahmedabad C.G. Road, Ahmedabad [Pan No.Aadcb3468K] (Appellant) .. (Respondent) I.T(Ss).A. No.507/Ahd/2019 (Assessment Year: 2013-14) Assistant Commissioner Of Vs. M/S. Benefit Tradelink Ltd., Income Tax, 508, Setu Sevanti, Opp. Central Circle-1(3), Bawarchi Restaurant, Off. Ahmedabad C.G. Road, Ahmedabad [Pan No.Aadcb3468K] (Appellant) .. (Respondent)

The ACIT, Central Circle-1(3), Ahmedabad vs. M/S. Benifit Trade Links Ltd., Ahmedabad

ITSSA 565/AHD/2019[2015-16]Status: DisposedITAT Ahmedabad25 Apr 2025AY 2015-16

Bench: Shri Siddhartha Nautiyal & Shri Narendra Prasad Sinhai.T(Ss).A. No.535/Ahd/2019 (Assessment Year: 2011-12) Assistant Commissioner Of Vs. M/S. Benefit Tradelink Ltd., Income Tax, 508, Setu Sevanti, Opp. Central Circle-1(3), Bawarchi Restaurant, Off. Ahmedabad C.G. Road, Ahmedabad [Pan No.Aadcb3468K] (Appellant) .. (Respondent) I.T(Ss).A. No.506/Ahd/2019 (Assessment Year: 2012-13) Assistant Commissioner Of Vs. M/S. Benefit Tradelink Ltd., Income Tax, 508, Setu Sevanti, Opp. Central Circle-1(3), Bawarchi Restaurant, Off. Ahmedabad C.G. Road, Ahmedabad [Pan No.Aadcb3468K] (Appellant) .. (Respondent) I.T(Ss).A. No.507/Ahd/2019 (Assessment Year: 2013-14) Assistant Commissioner Of Vs. M/S. Benefit Tradelink Ltd., Income Tax, 508, Setu Sevanti, Opp. Central Circle-1(3), Bawarchi Restaurant, Off. Ahmedabad C.G. Road, Ahmedabad [Pan No.Aadcb3468K] (Appellant) .. (Respondent)

The ACIT, Central Circle-1(3), Ahmedabad vs. M/S. Elegance Reality Limited, Ahmedabad

ITSSA 564/AHD/2019[2015-16]Status: DisposedITAT Ahmedabad25 Apr 2025AY 2015-16

Bench: Shri Siddhartha Nautiyal & Shri Narendra Prasad Sinhai.T(Ss).A. No.535/Ahd/2019 (Assessment Year: 2011-12) Assistant Commissioner Of Vs. M/S. Benefit Tradelink Ltd., Income Tax, 508, Setu Sevanti, Opp. Central Circle-1(3), Bawarchi Restaurant, Off. Ahmedabad C.G. Road, Ahmedabad [Pan No.Aadcb3468K] (Appellant) .. (Respondent) I.T(Ss).A. No.506/Ahd/2019 (Assessment Year: 2012-13) Assistant Commissioner Of Vs. M/S. Benefit Tradelink Ltd., Income Tax, 508, Setu Sevanti, Opp. Central Circle-1(3), Bawarchi Restaurant, Off. Ahmedabad C.G. Road, Ahmedabad [Pan No.Aadcb3468K] (Appellant) .. (Respondent) I.T(Ss).A. No.507/Ahd/2019 (Assessment Year: 2013-14) Assistant Commissioner Of Vs. M/S. Benefit Tradelink Ltd., Income Tax, 508, Setu Sevanti, Opp. Central Circle-1(3), Bawarchi Restaurant, Off. Ahmedabad C.G. Road, Ahmedabad [Pan No.Aadcb3468K] (Appellant) .. (Respondent)

M/S. Elegance Reality Limited, Ahmedabad vs. The DCIT, Central Circle-1(3), Ahmedabad

ITSSA 559/AHD/2019[2015-16]Status: DisposedITAT Ahmedabad25 Apr 2025AY 2015-16

Bench: Shri Siddhartha Nautiyal & Shri Narendra Prasad Sinhai.T(Ss).A. No.535/Ahd/2019 (Assessment Year: 2011-12) Assistant Commissioner Of Vs. M/S. Benefit Tradelink Ltd., Income Tax, 508, Setu Sevanti, Opp. Central Circle-1(3), Bawarchi Restaurant, Off. Ahmedabad C.G. Road, Ahmedabad [Pan No.Aadcb3468K] (Appellant) .. (Respondent) I.T(Ss).A. No.506/Ahd/2019 (Assessment Year: 2012-13) Assistant Commissioner Of Vs. M/S. Benefit Tradelink Ltd., Income Tax, 508, Setu Sevanti, Opp. Central Circle-1(3), Bawarchi Restaurant, Off. Ahmedabad C.G. Road, Ahmedabad [Pan No.Aadcb3468K] (Appellant) .. (Respondent) I.T(Ss).A. No.507/Ahd/2019 (Assessment Year: 2013-14) Assistant Commissioner Of Vs. M/S. Benefit Tradelink Ltd., Income Tax, 508, Setu Sevanti, Opp. Central Circle-1(3), Bawarchi Restaurant, Off. Ahmedabad C.G. Road, Ahmedabad [Pan No.Aadcb3468K] (Appellant) .. (Respondent)