https://www.taxtmi.com/caselaws?id=7035 Under section 2(11)(c), a newly set up business may choose as its previous year the period from commencement until accounts are made up within twelve months, but "accounts are made up" in the commercial sense only when profit or loss is ascertained and the accounts are balanced, ordinarily by a balance-sheet. Mere closing of ledger accounts and carrying forward balances is insufficient. On that basis, the assessee could not use Samvat year 2014 as the previous year, and the income-tax authorities were justified in treating 19 June 1958 to 31 March 1959 as the previous year for assessment year 1959-60. en-us Mon, 31 Jul 1967 00:00:00 +0530 Sun, 08 Feb 2009 09:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7035 Under section 2(11)(c), a newly set up business may choose as its previous year the period from commencement until accounts are made up within twelve months, but "accounts are made up" in the commercial sense only when profit or loss is ascertained and the accounts are balanced, ordinarily by a balance-sheet. Mere closing of ledger accounts and carrying forward balances is insufficient. On that basis, the assessee could not use Samvat year 2014 as the previous year, and the income-tax authorities were justified in treating 19 June 1958 to 31 March 1959 as the previous year for assessment year 1959-60. Case-Laws Income Tax Mon, 31 Jul 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7035