'No Change in Facts from AY 2013-14 TDS Ruling': ITAT Relies on Consistency Principle to Dismiss Revenue’s Appeal [Read Order]

The Ahmedabad bench of the Income Tax Appellate  Tribunal (ITAT) relied on the consistency principle to dismiss the revenue’s appeal, as there was no change in facts from the assessment year (AY) 2013-14 TDS (Tax Deducted at Source) ruling in the assessee’s own case.

In this case, the Revenue had appealed against the order of the Commissioner of Income Tax (Appeals) [CIT(A)] for the (AY) 2014-15.

The Revenue has appealed before the ITAT, as it is dissatisfied with the CIT(A)'s decision to cancel the demand of Rs. 72,20,450, which was raised by the Assessing Officer for a shortfall in TDS on data line charges of Rs. 1,54,44,813 (taxed at 25%) along with interest under Sections 201(1) and 201(1A) of the Income Tax Act, 1961.

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Interestingly, the CIT(A) deleted the demand, noting that a similar issue for A.Y. 2013–14 had already been decided in the assessee’s favor.

The assessee’s counsel submitted that the same issue came up in A.Y. 2013–14, where the CIT(A) had deleted the demand, and the ITAT upheld that decision in ITA No. 41/Ahd/2021. The counsel further contended that since the facts are similar, the current appeal by the Revenue should be dismissed.

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The Revenue’s counsel supported the AO’s order but did not deny that the same issue in AY 2013–14 was decided in the assessee’s favour by both the CIT(A) and the ITAT. The Departmental Representaive also couldn’t show any major difference between the facts of that year and the current A.Y. 2014–15.

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After hearing both sides and reviewing the records, including the ITAT’s order for A.Y. 2013–14, the Bench noted that the issue had already been decided in the assessee’s favour by both the CIT(A) and the ITAT. Since the facts in the current year are materially the same, the Tribunal found no reason to differ and relied on the earlier ruling to dispose of the present appeal.

The bench noted that “since the ITAT had already considered and decided the issue in favor of the assessee in the earlier assessment year, there is no justifiable reason to depart from that view.”

The bench dismissed the revenue’s appeal by applying the well-established principle of consistency in judicial discipline.

The ITAT, comprising T.R. Senthil Kumar  (Judicial Member) and Annapurna Gupta (Accountant Member), dismissed the Revenue’s appeal and upheld the order of CIT(A).

To Read the full text of the Order CLICK HERE

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