Balance needs to be maintained between the principle of consistency and the rule of res judicata

The ld. AR vehemently argued about the determination of the ALP for the current year by the assessee in the same way as was done in earlier years. It was stated that since such method was accepted by the TPO for the earlier years, the same ought not to have been rejected for this year. In the oppugnation, the ld. DR stated that res judicata does not apply to income tax proceedings and hence the factum of the TPO having accepted such wrong method of determining the ALP in the preceding years, was not relevant in so far as the current year was concerned. The Hon’ble Supreme Court has held in s...