Court rules against Revenue's inconsistent approach in tax assessments

The High Court dismissed Revenue's appeal against the Tribunal's order for the assessment year 1998-99, citing lack of consistency in Revenue's approach in accepting or rejecting Tribunal's orders. The Court emphasized the importance of Revenue maintaining consistency in its decisions and ruled that no substantial question of law arose in the matter.

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Issues:
Revenue's appeal against the Tribunal's order for the assessment year 1998-99; Application of res judicata and estoppel principles in revenue's decision to accept or reject Tribunal's orders inconsistently.

Analysis:
The High Court addressed the appeal by the revenue against the Tribunal's order for the assessment year 1998-99. The Tribunal had ruled in favor of the assessed based on precedents set in other cases. The Court noted the revenue's acceptance of similar orders in other cases but not in the present one, highlighting the lack of consistency in the revenue's approach. The Court emphasized the importance of the revenue maintaining consistency in its decisions and not selectively choosing when to appeal. It stressed that the revenue must provide valid reasons for differential treatment in such cases, which was lacking in this instance. The Court cited the rule of consistency and emphasized that the revenue's failure to follow it in this case led to the dismissal of the appeal. Ultimately, the Court concluded that no substantial question of law arose in this matter and dismissed the appeal.

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