Principles of Res Judicata under Tax laws
Those who are not familiar with Latin jargons, Principle of Res Judicata essentially means that any person who has approached Court against any cause of action which has already been decide by the Court, the said parties are restrained from approaching the Court again to agitate the same cause of action. In simple words, if you have filed a case against someone say on the issue of breach of contract then once the said issue is decided, you cannot file a case for breach of same contract against the same person. This common law principle is envisaged under Section 11 of the Civil Procedure Code. The intention of this principle is to stop multiplicity of cases. You will find a common term being used that is “there is no estoppel in tax laws”. Promissory Estoppel essentially means that a party is prevented by his own acts from claiming a right to detriment of the other party who was entitled to rely on such conduct and has acted accordingly . However, under tax laws, an order of a...