TMI Blog1983 (10) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... ith another company. As a consequence, the assessee-company had to change the accounting year. The change took place in the financial year 1978-79. Normally the assessee would have closed their accounts on 31-3-1979. However, on account of the change in the accounting year, the books were closed on 30-6-1979. As a result, there was no previous year for the assessment year 1979-80. After the assessment year 1978-79, the next assessment year was 1980-81. 1980-81 is the year under appeal before us. 3. It is an admitted position that in respect of the assessment year 1971-72, the assessee had certain business loss and unabsorbed development rebate. While computing the assessment for 1980-81, the ITO found that there was a profit of Rs. 5,75,9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess losses contained in section 72(1) also refer to the previous year. The proviso to section 72(1) states that the business or profession for which the loss was originally computed should be continued in the previous year relevant to the assessment year. He submitted that here again the emphasis is not so much on the assessment year but on the previous year. He then submitted that the proviso to section 72(1) contains an intrinsic evidence to support the assessee's case. He submitted that in a case where a change in the accounting year had taken place in a year for which there was no assessment year, the conditions in the proviso cannot be satisfied at all if the department's contention is accepted which means the assessee would be denied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch was next referred, is a section dealing with the allowance of development rebate. Here again, the emphasis has to be in the normal course on the year of installation of the plant or machinery available for development rebate. The fact of installation of machineries has necessarily to be connected with the previous year. If the conditions are satisfied, then the assessee would be eligible for the development rebate. Similarly, section 72 has necessarily to refer to the loss of the previous year which could be set off in a subsequent year. However, section 72 itself starts with a reference to the assessment year-- "Where for any assessment year, the net result of the computation under the head 'Profits and gains of business or profession ..... X X X X Extracts X X X X X X X X Extracts X X X X
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