1970 (12) TMI 22 - HC - Income Tax

Assessee is a co-operative society - change of previous year by the assessee - aproval from ITO is necessary

Summary

Issues:
- Determination of the previous year for assessment purposes under the Income-tax Act, 1922.

Analysis:
The judgment involves a dispute regarding the determination of the previous year for assessment purposes under the Income-tax Act, 1922. The assessee, a cooperative society registered under the Co-operative Societies Act, had been exempt from income tax and super tax under government exemptions until the assessment year 1954-55. The assessee had initially shown the previous year ending on March 31 for assessment purposes. However, for the assessment years 1956-57 to 1959-60, the assessee filed returns showing the previous year ending on September 30 of the relevant year, with the Income-tax Officer accepting these returns without objection.

For the assessment year 1960-61, the Income-tax Officer required the assessee to file the return based on the previous year ending on September 30, 1959, instead of March 31, 1960, as per the revised return submitted by the assessee. The dispute arose as the Income-tax Officer refused to consent to the change of the previous year. The assessee contended that the previous year should continue as per the years up to 1955-56, ending on March 31, 1960. However, the court held that the voluntary submission of returns by the assessee for the years 1956-57 to 1959-60, showing the previous year ending on September 30, implied consent from the Income-tax Officer for the change. Therefore, the Income-tax Appellate Tribunal's decision on the previous year was deemed correct.

In conclusion, the court answered the question referred to it in the affirmative, favoring the revenue and ruling against the assessee. The Commissioner of Income-tax was awarded costs amounting to Rs. 200 for the case.