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TMI Blog1969 (6) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee's income for nine months ended on March 31, 1950, could have been rightly assessed at the rate applicable for twelve months' income? (3) Whether there was any material available on record to support the Tribunal's conclusion that the assessee's turnover for the year ended March 31, 1950 was Rs. 15,00,000?" The learned counsel on both sides were agreed that question No. 1 need not be answered as the said question is involved in question No. 2 which was directed by this court to be referred as it arises out of the order of the Tribunal. The learned counsel for the assessee, Sri K. Srinivasan, did not press question No. 3 and he submitted that the same may be answered in favour of the revenue. The only question that requires t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xcept with the consent of the Income-tax Officer and upon such condition as the Income-tax Officer may think fit........" Under the Act, the tax is levied for each financial year commencing on the first April at the rate or rates prescribed in the Finance Act in force for the time being and is actually charged on the total income of the "previous year". The year for which the tax is paid is called the "assessment year" or "income-tax year". "Previous year", on the income of which the tax is levied, is called the "accounting year". For the assessment year 1949-50, the assessee was assessed under the Mysore Income-tax Act on his income earned during the accounting year ended on 30th June, 1949. By reason of the repeal of the Mysore Income-t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nge the period of the "previous year" becomes less than twelve months. In Esthuri Aswathiah v. Commissioner of Income-tax, the facts were as follows: The appellant, who had adopted the year ending on June 30, as the "previous year", was assessed to tax for the year ending June 30, 1950, for the assessment year 1951-52. For the assessment year 1952-53, he filed a return for 21 months commencing on July 1, 1950, and ending on March 31, 1952, and to this change the Income-tax Officer accorded his sanction and he assessed the total income for the period of 21 months at the rate applicable to that total income. One of the main contentions urged by the assessee which was rejected by the Supreme Court was that the income for 21 months should be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counsel for the revenue that under the proviso to clause (a) of sub-section (11) of section 2, the Income-tax Officer has the power to accord consent for the change upon such conditions as he may think fit and that power comprehends within its ambit the power to impose a condition that where the "previous year", as a result of the change allowed, falls below twelve months, the assessee shall be liable to pay tax at the rate applicable to the income of twelve months. It is clear from the judgment of the Supreme Court that the discretion vested in the Income-tax Officer under the proviso is limited to the period of "previous year" only. It was open to the Income-tax Officer in the instant case to impose a condition that the assessee's "Previo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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