Implied consent to change the previous year was inferred from accepted returns filed on a 30 September accounting basis.

A change in the previous year under section 2(11) of the Indian Income-tax Act, 1922 required the Income-tax Officer's consent. Where the assessee voluntarily filed returns for earlier years on the basis of an accounting year ending 30 September, and those returns were accepted without objection, that conduct was treated as a request to change the previous year and the acceptance was treated as implied consent. On that basis, the accounting year ending 31 March was not treated as continuing for assessment year 1960-61, and the previous year was taken as the year ending 30 September 1959.

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Issues: Whether the previous year for the assessment year 1960-61 was rightly taken as the year ending on 30 September 1959.

Analysis: Under section 2(11) of the Indian Income-tax Act, 1922, a change in the previous year could be made only with the consent of the Income-tax Officer. The assessee had voluntarily filed returns for the earlier assessment years on the basis of the year ending 30 September, and those returns were accepted without objection. That conduct was treated as an application for change of the previous year, and acceptance of the returns without objection was treated as implied consent by the Income-tax Officer. The earlier accounting year ending 31 March was therefore not treated as continuing for the later assessment year.

Conclusion: The previous year for the assessment year 1960-61 was rightly taken as the year ending on 30 September 1959, and the question was answered in the affirmative in favour of the Revenue and against the assessee.

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