9911796707
TMI Blog1966 (1) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... year 1952-53, the assessee filed a return for 21 months commencing on July 1, 1950, and ending on March 31, 1952, and requested the Income-tax Officer to accord his sanction to the change of the previous year from an year ending on June 30 to an year ending on March 31. The Income-tax Officer duly sanctioned the change. In the assessment order for the year 1952-53, he stated : " The return of income filed for this year is for the period between 1st July, 1950, and 31st March, 1952. The permission to change the previous year is granted subject to the condition that the total income in the period of 21 months ending 31st March, 1952, will be assessed to tax at the rate applicable to the total income in the said 21 months. " The appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e than 12 months, and the Income-tax Officer was not competent to constitute a previous year consisting of 21 months under the proviso to clause (i)(a) to section 2(11). The High Court rejected this contention and answered the question in favour of the revenue and against the assessee. The assessee now appeals to this court on a certificate granted by the High Court under section 66A(2) of the Indian Income-tax Act, 1922. Mr. Srinivasan repeated before us the contentions which he urged before the High Court. He submitted that the scheme of the Act and particularly sections 2(11) and 3 show that there cannot be a previous year consisting of more than 12 months, and the Income-tax Officer had no power to direct under the proviso to clause ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the financial year and preceding a financial year. " Thus, under the main part of clause (i)(a) of section 2(11), the previous year is either a period of 12 months ending on March 31 next preceding the assessment year or at the option of the assessee the year ending on some other date within the aforesaid period of 12 months, if the accounts of the assessee have been made up to such date. The proviso to sub-clause (i)(a) reads : " Provided that where in respect of a particular source of income, profits and gains an assessee has once been assesssed, or where in respect of a business, profession or vocation newly set up an assessee has exercised the option under sub-clause (c), he shall not, in respect of that source or, as the case may b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... meaning of the expression " previous year " as applicable to him is determined, and he cannot exercise this option again " 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. " If the assessee wants to change the meaning of the previous year as then applicable to him, he must obtain the consent of the Income-tax Officer, and the Income-tax Officer may accord such consent on proper terms. The Income-tax Officer may refuse to give his consent, but if he does give his consent, he has ample power to impose the condition that the full period from the end of the " previous year " for the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment year is repugnant to section 3. In Dhandhania Kedia & Co. v. Commissioner of Income-tax, this court pointed out that it is a contradiction in terms to speak of six previous years in relation to any specified assessment year. Mr. Srinivasan is not right in submitting that section 25(1) contemplates two previous years. Section 25(1) provides that in case of discontinuance of any business, profession or vocation in any assessment year, the Income-tax Officer may in that year make an accelerated assessment in respect of the income of the period between the end of the previous year and the date of such discontinuance, in addition to the useful assessment in respect of the income of the previous year. Section 25(1) contemplates the us ..... X X X X Extracts X X X X X X X X Extracts X X X X
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