Consistency in tax treatment bars shifting capital gains to an earlier year when similar cases were accepted later.

Capital gains from the developer agreement were held not taxable in assessment year 1999-2000 where possession was not handed over in that year and the consideration was offered to tax only in later years when entitlement certificates were issued. The Revenue's attempt to tax the receipt in 1999-2000 was also rejected because identical receipts in similarly placed cases had already been accepted by the Department in subsequent years, and that factual position was not controverted. The principle of consistency and uniform treatment of similarly placed assessees was applied, and the addition for assessment year 1999-2000 was directed to be deleted.

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Issues: Whether the capital gains arising from the agreement with the developer could be brought to tax in assessment year 1999-2000, and whether the Revenue could depart from the treatment accepted in the cases of similarly placed assessees.

Analysis: The assessee's case was that possession was not handed over in 1999 and that consideration accrued and was offered to tax only over later years when entitlement certificates were issued by the developer. The record also showed that in other similarly placed cases the Department had accepted taxation of the same receipts over the subsequent years and had not consistently proceeded to tax them in assessment year 1999-2000. The Revenue did not controvert these factual assertions. In these circumstances, the settled principle requiring the Revenue to maintain consistency and uniformity in the treatment of similarly placed assessees was applied, and the departure sought in the present case was held unjustified.

Conclusion: The addition made in assessment year 1999-2000 was not sustainable and was directed to be deleted. The appeals were allowed.

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