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TMI Blog1982 (12) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... once the Incometax-Officer gave permission to change the previous year, the same permission cannot be revoked by the subsequent Income-tax Officer, having regard to the provisions of section 3(4) of the Income-tax Act, 1961, and that the revenue authorities were wrong in withdrawing the grant of change in previous years relating to the assessment years 1973-74 and 1974-75 ? This case relates to the assessment years 1973-74 and 1974-75. The assessee, Hari Prosad Lohia, wrote a letter dated March, 14, 1973, to the ITO stating that he had been following Diwali year up to and including the assessment year 1972-73 as his accounting year and that his sources of income were from his shares of East India Electricals and proprietorship of a firm st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment year 1973-74. The ITO computed the income of the assessee at Rs. 80,880 for the assessment year 1973-74, by including capital gain on sale of shares of East India Commercial Co. Pvt. Ltd. and Cutler Hammer India Ltd., being taken on protective measure, as these transactions were done after the close of Diwali 2029. For the assessment year 1974-75, the ITO computed the income of the assessee at Rs. 4,64,620 by including capital gain from sale of shares of Cutler Hammer India Ltd. and East India Commercial Co. Pvt. Ltd. The AAC confirmed the order of the ITO; thereupon the assessee appealed to the Tribunal. It was contended on behalf of the assessee that an appeal lay against the order of the AAC and the assessee was entitled to chan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been given where the assessee denies his liability to be assessed under this Act or any order of assessment under sub-s. (3) of s. 143 or s. 144, where the assessee objects to the amount of income assessed, or to the amount of tax determined, or to the amount of loss computed, or to the status under which he is assessed. In this case at the assessment stage the assessee submitted a return and produced his books of account for the year ending 31st March, 1973. The ITO held that this could not be accepted and " the change of the accounting year is not permitted for this assessment year ". In order to compute the amount of income for any assessment year and also the amount of tax payable by the assessee, it is necessary to determine what ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... passed the assessment order, has held that his predecessor's order was a conditional order and the assessee could not be allowed to change the period of accounting. A similar case came up before the Allahabad High Court in the case of 1. K. Synthetics Ltd. v. O. S. Bajpai, ITO [1976] 105 ITR 864. The facts of that case has a very close resemblance to the facts of this case. In that case also the ITO had allowed the assessee to change the year of account on certain conditions. One of the conditions was that the said change should not result in the reduction of tax liability including surtax. In the assessment order it was held that this condition was not fulfilled and, therefore, the assessee should not be allowed to change his year of accou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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