T.K. GINARAJAN vs COMMNR. OF INCOME TAX, COCHIN

The Supreme Court referred the matter to a larger bench to determine whether the revenue can be precluded from defending itself by relying on contrary decisions, particularly in light of conflicting views from various High Courts. The Court emphasized that res judicata does not apply in tax matters for different assessment years, as each year presents a distinct cause of action. The principle established is that the revenue cannot challenge the correctness of a law accepted in one case for another case without just cause, reinforcing the precedential value of earlier decisions.