1994 (8) TMI 87

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.... Act, 1989 with effect from 1-4-1990. The accounting period of this assessee for this year consisted of more than 12 months that is to say from 23-10-1987 (Diwali) to 31-3-1989. The assessee disclosed an income of Rs. 63,810 for the year. As per option given under the provisions of the Income-tax Rules, the assessee chose not to file a certificate in Form No. 27C. The Assessing Officer was of the opinion that a seller had to deduct tax under section 206C of the Act at the rate fixed on the purchases under such circumstances. As the provisions of section 206C of the Act came into effect from 1-6-1988 the assessee's counsel contended that the purchase and sale made before 1-6-1988 though falling within the accounting year were not hit by sect....

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....y the provisions of section 44AC to the purchases of the later period only that is to say after 1-4-1988. He further proceeded to delete the addition of Rs. 20,000 made by the Assessing Officer on account of low withdrawals. The Department has come in appeal only with regard to the presumptive assessment under section 44AC. 3. We have heard the Departmental Representative and the assessee's counsel. The assessee was following Diwali year as his accounting year. As with effect from assessment year 1989-90 the Income-tax Act provided that the financial year ending on 31st March of every year had to be treated as accounting period for all the assessees, the assessee chose to close the account for this year on 31-3-1989. The Finance Act, 198....