Same view should continue to prevail for subsequent year also unless there is material change in the facts

The judgment of Hon’ble Delhi High Court rendered in the case of Neo Poly Pack Ltd. (supra) is squarely applicable in the present case because in that case it was held that , for the sake of consistency, the same view should continue to prevail for subsequent year also unless there is material change in the facts.

In that case also, it was noted that rental income from the factory building owned by the assessee company was assessed under the head business in all the earlier years starting from assessment year 1984-85 onwards. The assessment year in dispute before Hon’ble Delhi High court was assessment year 1989-90 in which the Assessing Officer sought to assess the said income as income from house property. It is also noted by the Hon’ble Delhi High Court that there was no single distinguishing feature pointing a different view and hence the income was liable to be assessed as business income in view of rule of consistency. In the present case also, we find that not a single distinguishing feature has been pointed out by the Assessing Officer or by the Ld DR of the revenue in earlier assessment year and also in subsequent year wherein the claim of the assessee has been accepted by the Assessing Officer in scrutiny assessment that the lease rental income is assessable as business income. We, therefore, find no reason to interfere in the order of the Ld CIT(A) on this issue by respectfully following the judgment of Hon’ble Delhi High Court rendered in the case of CIT v. Neo Poly Pack Ltd. (supra). The other judgments cited by the Ld AR of the assessee are not relevant because we have decided this issue on the basis of rule of consistency. This ground of the revenue is rejected.”

Since, first issue in this case is a covered issue, therefore following the jurisdictional High Court decision and the ITAT, Delhi Bench decisions in the case of the assessee, we uphold the order of CIT(A). As such, we dismiss the appeal of the Revenue. The other issues are consequential as admitted by Ld.DR, therefore, not required to be adjudicated.

INCOME TAX APPELLATE TRIBUNAL, DELHI

ITA Nos.4782 & 4783/Del./2011

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