Amortisation claims follow the circular or rule in force at the accounting year's start, with written option needed under Rule 9A.

Amortisation entitlement was treated as governed by the circular operative at the start of the relevant accounting year, so the later circular could not displace the claim for that year. For the later assessment year, Rule 9A of the Income-tax Rules was identified as the governing provision, and its operation depended on the assessee's written option. The matter therefore required reconsideration after obtaining that option, with the earlier year's amortisation claim supported and the later year sent back for fresh disposal under the applicable rule framework.

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Issues: (i) Whether the assessee was entitled to the claimed amortisation for the assessment year 1971-72 on the basis of the circular in force at the commencement of the accounting year. (ii) Whether the claim for amortisation for the assessment year 1973-74 was to be governed by Rule 9A of the Income-tax Rules, with the matter being restored for fresh disposal after obtaining the assessee's written option.

Issue (i): Whether the assessee was entitled to the claimed amortisation for the assessment year 1971-72 on the basis of the circular in force at the commencement of the accounting year.

Analysis: The applicable circular was the one operative on 1 April 1971, being the commencement of the relevant accounting year. The amortisation claim for that year was fully supported by the circular then in force, and the later circular could not displace that entitlement for the assessment year in question.

Conclusion: The assessee's claim for amortisation for the assessment year 1971-72 was allowed.

Issue (ii): Whether the claim for amortisation for the assessment year 1973-74 was to be governed by Rule 9A of the Income-tax Rules, with the matter being restored for fresh disposal after obtaining the assessee's written option.

Analysis: For the assessment year 1973-74, Rule 9A was held to govern the allowance. The rule contemplated its application on the assessee's option, and the matter therefore required reconsideration by the appellate authority after obtaining that option in writing.

Conclusion: The issue for the assessment year 1973-74 was remitted for disposal in accordance with Rule 9A after obtaining the assessee's written option.

Final Conclusion: The departmental challenge failed for the assessment year 1971-72, while the dispute for the assessment year 1973-74 was sent back for decision under the applicable rule framework.

Ratio Decidendi: The circular or rule operative at the commencement of the relevant accounting year governs the amortisation entitlement for that year, and where a later rule requires an assessee's option, the matter must be reconsidered after obtaining such option.

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