9911796707
TMI Blog1987 (9) TMI 43X X X X Extracts X X X X X X X X Extracts X X X X ..... ion No. 2(i) set out in the order of the Income-tax Officer and it reads as under : " 2. In this connection, I have to inform you that you are allowed to vary the accounting year from financial year ending on March 31, 1983, to the period from April 1, 1982, to June 30, 1983 (i.e., 15 months relevant to the assessment year 1984-85). There will be no assessment for assessment year 1983-84 which will be skipped over. Subsequent accounting year will commence from 1st July and end with 30th June. The above change of accounting year is allowed subject to the conditions noted below: (i) Deduction towards depreciation allowance, investment allowance, development rebate, capital expenditure on research and development, etc., will be claimed durin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld not be allowed to rescind from his acceptance of the conditions imposed by the Income-tax Officer and that the conditions imposed by the Income-tax Officer are not severable; and hence the order as a whole passed by the Income-tax Officer dated May 27, 1982, must stand or fail. Originally, the previous year of the assessee under the Income-tax Act was ending on March 31 of every succeeding year. This position continued up to the assessment year 1982-83. On May 4, 1982, the assessee applied for a change of the previous year which was from April to March, to July to June. Hence, according to the assessee, the year will end not on March 31, 1983, but on June 30, 1983. Naturally, the period for assessment will be 15 months for the said yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acknowledge with thanks the receipt of your letter No. CC/CZ/2352/1982-83 dated May 27, 1982, on the subject cited above contents of which have been noted." The aforesaid extract of the letter will clearly prove that there is no question of acceptance of the conditions imposed by the Income-tax Officer. The objection to the effect that the conditions imposed cannot be severed cannot be appreciated in view of the fact that the Income-tax Officer has imposed the said conditions arbitrarily which conditions go against the spirit of the Act itself and deny any deductions which the assessee was entitled to have. Such arbitrary conditions deserve to be struck off from the impugned order itself. Mr. Kaji, learned counsel appearing for the petit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relevant for the assessment year 1952-53 and the entire income must be assessed at the rate specified in the relevant Finance Act." The abovesaid decision has no bearing on the facts of this case. The condition imposed by the Income-tax Officer in the abovesaid case treating the period of 21 months for the assessment year 1952-53 commencing from July 1, 1950, and ending March 31, 1952, was held to be within the power of the Income-tax Officer. The Income-tax Officer could have refused permission to change the year. Even if he permits the change, he cannot put conditions which are arbitrary. As far as the present case is concerned, the Income-tax Officer has imposed the conditions arbitrarily and such conditions go against the spirit of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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