9911796707
TMI Blog1968 (5) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee-company applied to the Income-tax Officer for permission to change the date of the closing of their accounts from 31st March, 1957, to the 30th June, 1957. By his order dated 17th April, 1964, the Income-tax Officer accepted the assessee's request on condition that the assessee was assessed for the assessment year 1958-59 in respect of its income, profits and gains for the fifteen months from the 1st April, 1956, to the 30th June, 1957. As the assessee accepted the condition, the income-tax assessment for 1958-59 was made in respect of the aforesaid period of fifteen months. In response to the notice under section 14(2) of the Wealth-tax Act for the assessment year 1957-58, the assessee contended that, as it had no previous year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on, the construction placed by the Wealth-tax Officer on the words ' if an assessment were to be made under the Act for that year ' is untenable and incorrect. The Wealth-tax Officer seems to be of the opinion that if an income-tax assessment for 1957-58 were to be made, there would be a previous year ending on 31st March, 1957, and that the action of the department in refraining from making such an assessment for 1957-58 does not entitle the assessee to claim exemption from wealth-tax assessment for the same year. The fallacy in the argument of the Wealth-tax Officer lies in presuming that he could have made the income-tax assessment for 1957-58 if he would. The question is whether such income-tax assessment is capable of being made. After ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opinion, the previous year having been changed from ending in March to end in June, the valuation date would change accordingly, so that the effect would be that even for the purpose of income-tax assessment, if an assessment were to be made for the assessment year 1957-58, the previous year would end on the 30th June, 1956, and not on the 31st March, 1957. Now, since the 30th June, 1956, falls outside the period when the Wealth-tax Act came into force, no assessment could be made on the assessee in respect of the assessment year 195758. Accordingly, the Tribunal dismissed the departmental appeal. At the instance of the Commissioner of Wealth-tax, the following question of law has been referred to this court by the Tribunal : " Whether, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e said twelve months in respect of a year ending on any day other than the said 31st day of March, then, at the option of the assessee, the year ending on the date to which his accounts have been so made up : Provided that where in respect of a particular source of income, profits and gains, an assessee has once been assessed, he shall not, in respect of that source exercise the option given by this sub-clause so as to vary the meaning of the expression ' previous year ' as then applicable to him except with the consent of the Income-tax Officer and upon such conditions as the Income-tax Officer may think fit to impose." Mr. S. Mukherjee, learned counsel for the department, submitted that under section 2(q) of the Wealth-tax Act, the " va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eriod of 15 months were to be assessed for the assessment year 1958-59, there could not be any previous year for the assessment year 1957-58. The assessee has already been assessed to income-tax in respect of his income for the period 1st April, 1955, to 31st March, 1956, in the assessment year 1956-57, and if the income for the period 1st April, 1956, to 30th June, 1957, was to be assessed in the assessment year 1958-59, there could be no assessment to income-tax for the assessment year 1957-58. Dr. Pal, therefore, submitted that the Appellate Assistant Commissioner was right in holding that there was no previous year for income-tax purposes for 1957-58 year and, therefore, there could be no valuation date for the wealth-tax assessment for ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
