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TMI Blog2024 (7) TMI 1142X X X X Extracts X X X X X X X X Extracts X X X X ..... stion of law has arisen and accordingly dismissed the appeal. Principle of consistency - We, find much substance in the contentions as urged on behalf of the assessee that the present proceedings would stand covered by not only the position taken by the revenue for AY 1984-85 subject matter of M/s. Raymond Woollen Mills Ltd. decided by the Tribunal, but also by the subsequent orders passed by this Court, for assessment years as noted by us hereinabove. Supreme Court in Godrej and Boyce Manufacturing Company Ltd. [ 2017 (5) TMI 403 - SUPREME COURT] wherein the Supreme Court reiterated the principles when it was observed that the need for consistency and certainty and existence of strong and compelling reasons for a departure from a settled position has to be spelt out, which conspicuously was stated to be absent in the case in hand before the Supreme Court. The Supreme Court reitereated the principles as laid down in M/s. Radhasoami Satsang, Saomi Bagh, Agra [ 1991 (11) TMI 2 - SUPREME COURT] wherein as held observed that strictly speaking res judicata does not apply to income tax proceedings and that each assessment year being a unit, what is decided in one year may not apply in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... computing the assessee s income chargeable to tax for the assessment year 1986-87. This, according to the assessee, was consistent to the claim made by the assessee for the prior two years, namely, AY 1984-85 and AY 1985-86. 6. The Assessing Officer passed an order dated 22 September, 1989 disallowing the pre-operative expenses as deductions under revenue expenditure. The assessee assailed the orders passed by the Assessing Officer in appeal before the CIT(A), who passed an order dated 26 March, 1991 partly allowing the said appeal. In regard to the expenditure on such heads, as claimed by the assessee, that it be allowed as revenue expenditure, the CIT(A), accepted the assessee s contention and considering the position in law, held that the pre-operative expenses relating to the expansion of the cement unit are allowable as a revenue expenditure. 7. The order passed by the CIT(A) was challenged by the Revenue before the Tribunal, as also there was a cross appeal filed by the assessee on some other issues not relevant in the present context. The Tribunal by the impugned common order dated 10 February, 2005 reversed the order passed by the CIT(A) and held that the expenses, namely, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s passed by this Court for the assessment years as noted by us. 10. On the other hand, Mr. Suresh Kumar, learned counsel for the revenue would not dispute that such expenditure was subject matter of consideration not only in the proceedings before the Tribunal for the AY 1984- 85 (Income Tax Appeal No. 4088/B/91-Deputy Commissioner of Income Tax, Mumbai vs. Raymond Woollen Mills Ltd.) as also before this Court for AYs 1985-86, 1990-91, 1994-95 and 1997-98 as noted by us above. 11. We have perused the orders passed by the Tribunal in the assessee s own case for the AY 1984-85. We have also perused the orders passed by this Court. We note that in fact for AY 1985-86, the Division Bench of this Court dismissing the revenue s appeal, observed that the Tribunal had passed an order based on the order passed by the Tribunal in regard to the earlier assessment year 1984-85 and for the assessment year 1985-86, the revenue was unable to state whether the Revenue had preferred any appeal against the said order or had filed any reference against the same. In this view of the matter, the Division Bench observed that as the issue involved was purely based on a finding of fact, no substantial que ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. The Court observed thus: 5. Re question (b): As regards question (b) the Tribunal has relied upon its order in the case of the assessee for Assessment year 1996-97 which in turn relies upon an order for AY 1990-91. That order in turn relied upon the order of the Tribunal for Assessment year 1985-86 which had been confirmed by this Court, treating pre-operative expenses as revenue expenditure. The order passed by the Assessing Officer notes in paragraph 9.1 that the pre-operative expenses related to the following items viz. salary and wages, staff welfare expenses, power, travelling, legal and professional fees and miscellaneous expenses. Evidently these are of a revenue nature. For all these reasons question (b) will not give rise to any substantial question of law. The appeal is accordingly dismissed. There shall be no order as to costs. 14. We, therefore, find much substance in the contentions as urged on behalf of the assessee that the present proceedings would stand covered by not only the position taken by the revenue for AY 1984-85 subject matter of Income Tax Appeal No. 4088/B/91 in Deputy Commissioner of Income-tax, Mumbai vs. M/s. Raymond Woollen Mills Ltd. decided by t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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