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The diff (Section 11.1) utility adds extra characters (>, <, +, and so on) to the beginning of lines. That can cause you real grief with tabstops because the extra characters added by diff can shift lines enough to make the indentation look wrong. The diff -t option expands TABs to 8-character tabstops and solves the problem.
If you use nonstandard tabstops, though, piping diff's output through expand or pr -e doesn't help because diff has already added the extra characters.