1983 (3) TMI 86 - AT - Income Tax

Summary

Issues:
Determining the previous year for assessing an individual's salary income.

Analysis:
The judgment by the Appellate Tribunal ITAT BOMBAY-A involved two appeals filed by the Department concerning the assessment years 1973-74 and 1974-75 for the same individual. The primary issue was the determination of the previous year for assessing the individual's salary income, as the assessee maintained accounts up to 30th November each year, while the Income Tax Officer (ITO) contended that the previous year should be the financial year ending on 31st March. The Appellate Assistant Commissioner (AAC) ruled in favor of the assessee, allowing the individual to make up accounts relating to salary income up to 30th November each year, based on Section 3(1) of the IT Act, and directed the ITO to modify the assessments accordingly.

The Department appealed the AAC's decision, arguing that since the assessee had income only from salary, there was no need to make up accounts on any specific date. They cited previous court decisions to support their stance, emphasizing that the previous year for an assessee with only salary income should be the financial year. The assessee's representative supported the AAC's order, highlighting a decision by the Andhra Pradesh High Court that favored the assessee's position and pointing out a similar decision by the Tribunal in favor of another employee of the same company.

Upon reviewing the contentions of both parties and the case facts, the Tribunal noted that the previous decision against the assessee was rendered before the Andhra Pradesh High Court's decision was available. They distinguished the case from previous rulings, noting that the assessee maintained accounts and made up accounts annually until 30th November. Referring to the Andhra Pradesh High Court decision involving a judge's salary income, the Tribunal found it applicable to the present case and upheld the AAC's order for both assessment years, dismissing the appeals.

In conclusion, the Tribunal dismissed the appeals, affirming the AAC's decision regarding the determination of the previous year for assessing the individual's salary income based on the provisions of the IT Act and relevant court decisions.