Strictly speaking res judicata does not apply to income-tax proceedings. Again, each assessment year being a unit, what is decided in one year may not apply in the following year but where a fundamental aspect permeating through the different assessment years has been found as a fact one way or the other and parties have allowed that position to be sustained by not challenging the order, it would not be at all appropriate to allow the position to be changed in a subsequent year. ( CA Nos 10574 to 10583 of 1093 dt .15 -11. 1991 ) ( AY. 1964 -65 to 1969 -70 )
Radhasoami Satsang v. CIT (1992] 193 ITR 321 / 60 Taxman 248 / (1991 ) 100 CTR 267 (SC) Editorial : Refer Godrej & Boycee Mamaufacturing Co Ltd v .DCIT ( 2017 ) 394 ITR 449/ 247 Taxman 361/ 151 DTR 89/ 295 CTR 121 (SC)/ CIT v. Excel Industries Ltd ( 2013 ) 358 ITR 295 (SC)
Interpretation of taxing statues – Principle of Resjudicata does not apply to income tax proceedings – In the absence of any change in the circumstances revenue could not reopen the question which had been decided upon in the earlier years .