2005 (10) TMI 62

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... to the amendment with effect from April 1, 1989 thereby cancelling the order of the Commissioner of Income-tax under section 263?" The assessment year is 1985-86. The assessee's accounting period is July 1, 1983 to June 30, 1984 and, the assessee was assessed under section 143(3) of the Act by order dated January 4, 1988. On December 31, 1984, the assessee-company amalgamated with M/s. Nestler Boilers P. Ltd. Therefore, the accounts of the assessee-company were made up for a period of six months from July 1, 1984 to December 31, 1984 showing net profit of Rs. 2,86,074. The assessee-company accordingly filed the return of income for the assessment year 1986-87. Assessment came to be framed for the assessment year 1986-87 on a total in....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sel appearing on behalf of the applicant-Revenue. Though served, there is no appearance on behalf of the assessee. Section 3(1) of the Act defines "previous year" and under clause (a), it means the financial year immediately preceding the assessment year; under clause (b), it is laid down that if the accounts of the assessee have been made up to a date within the said financial year, then, at the option of the assessee, the 12 months ending on such date; under clause (c), the Central Board of Direct Taxes or any authority authorized by the Board may determine such period in the case of any person or class of persons, or business or class of business which do not fall either under clause (a) or clause (b); and under clause (d), in the cas....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....vious year" for the purpose of the said source of income or the business, except with the consent of the Assessing Officer and subject to such conditions that the officer may think fit to impose. Therefore, in the present case, the assessee having exercised the option once of adopting the "previous year" as commencing on July 1, every year and ending on June 30 of next year i.e., comprising a period of twelve months, the assessee had no option but to consistently follow the same. It is not the case of the Commissioner of Income-tax that the assessee has violated the same. As the facts go to show, the assessee ceased to exist on and from 9 December 31, 1984, on account of amalgamation with M/s. Nestler Boilers P. Ltd. and hence, for the a....