2008 (5) TMI 6

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....d by the High Court of Delhi in I.T.A.No.708/2006 by which the Department's Appeal stood dismissed. The short point arising in this case is: Whether income accrued to the assessee on registration of the sale deed in favour of the third party (plot purchaser) or whether it accrued at the time of execution of the tripartite agreement? According to the Department, income accrued on the date of exe....

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.... which took place during the Assessment Year 1994-95. We are proceeding on the basis that the transaction in this case is genuine as there is no challenge on that account by the Department. The basic controversy is in the context of the year in which taxability arose. The basic controversy is in which year the liability arose - whether it arose during the Assessment Year 1994-95 or whether it a....

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....accounting under Section 145 of the Income Tax Act, we see no reason to interfere with the impugned judgment. Before concluding, we may state that the High Court has proceeded on the basis of 'rule of consistency'. We do not agree with the view taken by the High Court on that count. In cases where the Department wants to tax an assessee on the ground of the liability arising in a particular yea....