https://www.taxtmi.com/caselaws?id=774059 The Tribunal allowed the assessee's appeal regarding characterization of land sale income. The AO and CIT(A) had treated proceeds from land sale as business income, adding it to total income. However, the Tribunal found that the land was consistently shown as fixed asset in balance sheets and the department had accepted similar sales from the same land as long-term capital gains in the preceding assessment year. Applying the principle of consistency, the Tribunal held the department cannot arbitrarily change treatment from capital gains to business income without justifiable reasons. The addition was deleted and income was directed to be taxed as long-term capital gains at 20%. en-us Mon, 30 Jun 2025 00:00:00 +0530 Wed, 02 Jul 2025 08:42:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=774059 The Tribunal allowed the assessee's appeal regarding characterization of land sale income. The AO and CIT(A) had treated proceeds from land sale as business income, adding it to total income. However, the Tribunal found that the land was consistently shown as fixed asset in balance sheets and the department had accepted similar sales from the same land as long-term capital gains in the preceding assessment year. Applying the principle of consistency, the Tribunal held the department cannot arbitrarily change treatment from capital gains to business income without justifiable reasons. The addition was deleted and income was directed to be taxed as long-term capital gains at 20%. Case-Laws Income Tax Mon, 30 Jun 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=774059