1988 (11) TMI 19

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....in law to exercise an option for adoption of a particular previous year in respect of the agricultural income which was brought within the tax net for the first time during the assessment year 1974-75 ? 2. Whether the Tribunal, in the context of the relevant provisions of law relied upon by the assessee to show that the agricultural income for the period from September 8, 1972 to September 7, 1973, was not includible in the total income of the assessee, erred in law in holding that the interpretation of the expressions 'in the previous year' and 'during the previous year' was not material ?" The assessee is a partner in various firms and is also having agricultural income. He was maintaining books of account for his agricultural incom....

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....t, on appeal to the Tribunal, the assessee's view-point was accepted. The Tribunal considered the agricultural income to be from a new business and allowed him to have the option of the previous year and obviously this was done by applying the provisions of section 3 ( 1 ) (d) (ii) of the Act. On consideration of the matter, we are of the view that the Tribunal erred in disturbing the decisions of the Income-tax Officer and of the Appellate Assistant Commissioner. The first mistake committed by the Tribunal was that it considered the inclusion of agricultural income for rate purposes with effect from April 1, 1973, as the setting up of a new business or profession by the assessee regarding agriculture which was not new endeavour. He was ....