1977 (4) TMI 9

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....vered by SAMBASIVA RAO, Actg. C.J.-" Whether, on the facts and in the circumstances of the case, the assessee was entitled to close its accounts on November 5, 1962, for the assessment year 1963-64 without obtaining the ITO's consent as laid down in s. 3(4) of the I. T. Act, 1961 ?" This is the question which has been referred to the High Court by the Tribunal. The assessee is a registere....

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....the ITO. He, therefore, took the trading results only up to October 26, 1962, and completed the assessment. In appeal, the AAC rejected the assessee's contention holding that the firm could not deviate from the terms of the partnership deed regarding the closure of accounts. In further appeal before the Tribunal, it was found that though there was a mention of Diwali day in the partnership deed, f....

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.... section defines "previous year". Very many contingencies were brought within the ambit of the expression "previous year". One of those contingencies is that "if the accounts of the assessee have been made up to a date within the financial year then, at the option of the assessee, the twelve months ending on such date". Sub-s. (4), however, says : " Where in respect of a particular source of in....

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....xercised that option or has once been assessed, then he shall not change it excepting with the consent of the ITO. The facts as found by the Tribunal do not come within the ambit of sub-s. (4). The finding of fact clearly is that though Diwali day has been mentioned in the partnership deed, all along the assessee has been closing his accounts, without any exception, on a day round about Diwali ....