Case Law Details
ITAT Lucknow held In the case of JCIT vs. M/s Super House Leather Ltd. that following the judgment of Bombay High Court in the case of Godrej And Boyce Mfg. Co. Ltd. vs. DCIT [2010] 328 ITR 81 (Bom), it is clear that Rule 8D is prospective and therefore, applicable from assessment year 2008-09 and afterwards. Therefore, Rule 8D is not applicable in the present year.
In the matter of transfer pricing adjustment, no reasons have been given by the present TPO to reject the method of Cost Plus basis adopted by the assessee and accepted by the Department in earlier year(s). Although principle of res-judicata does not apply to the Tax proceedings yet, one cannot left aside the “Principle of Consistency”, which requires that when the facts & circumstances continue to remain the same, then there should not be any variation in the treatment from earlier year.
Facts of the Case
Grounds of appeal:
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