1965 (3) TMI 12

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....er, 1943, to October, 1944. The assessee was a registered firm consisting of three partners, Lal Chand Jain, Mithan Lal Jain and Sunder Lal Jain. The business of the firm was manufacture and sale of bidis. During the accounting period, there were certain disputes between the three partners and, consequently, they decided to divide the territories for the purposes of their business with effect from....

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....he assessment year 1945-46, the previous year was shown as the period ending April 29, 1944, being the date on which the partners divided the territories for the purposes of business. A sum of Rs. 27,160 was due from Messrs. Tikkam Das Chaman Lal of Ahmedabad, which, according to the assessee had been acknowledged by the debtor from time to time, the last acknowledgment being in October, 1941. Dur....

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....he parties during the accounting period, the bad debt claimed by the assessee was a permissible one. The matter went up in appeal before the Income-tax Appellate Tribunal which by its order dated December 9, 1955, held that the accounting year of the assessee for the purpose of assessment for the assessment year 1945-46 ended on April 29, 1944, and since there was nothing to show that the debt bec....

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.... that the Tribunal was clearly in error in limiting the accounting period to April 29, 1944. Where an assessee has, in respect of a particular source of income profits and gains, once been assessed, he cannot vary the previous year except with the consent of the Income-tax Officer. Under section 3 of the Act the tax is to be charged in respect of the total income of the previous year which in this....