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Issues involved: Assessment of income as salary income or business income, lack of consistency in orders passed by the Assessing Officer.
Assessment of income as salary income or business income: The judgment pertains to a batch of 17 appeals filed by the Revenue concerning the assessment of income for various assessment years. The Assessing Officer initially assessed the income of the Assessee, Mr. Sudhir Chaudhary, as salary income for the years 1979-80 to 1987-88, and as business income for the years 1988-89 to 1997-98. The Commissioner of Income Tax (Appeals) upheld the salary income assessment, but the Tribunal reversed it, determining the income should be assessed as salary income. A similar situation arose for subsequent years, with inconsistent assessments between salary and business income for different years. The High Court noted the lack of consistency in the Assessing Officer's orders and emphasized the importance of following a consistent pattern unless warranted otherwise. The Court observed that the flip-flop in assessments not only caused harassment to the Assessee but also increased the workload of the Court unnecessarily. Principle of consistency in assessments: The Court emphasized the principle of consistency in assessments and criticized the Revenue for not maintaining a consistent approach in the orders passed by the Assessing Officer. The Court highlighted the need for a consistent pattern in assessments based on the facts of the case. Despite the varying assessments made by the Assessing Officer over different assessment years, the Court noted that the Assessing Officer and the Commissioner of Income Tax (Appeals) had recently taken the view that the Assessee's income should be classified as salary income rather than business income. Consequently, the Court found that the appeal did not raise any substantial question of law warranting consideration and dismissed the appeal.
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