Financial year as uniform accounting year - Removal of difficulties faced by companies during transitional previous year relevant for assessment year 1989-90 and also in subsequent years - Companies Law - Letter: No. 12/8/86-CL-V,

Letter: No. 12/8/86-CL-V, dated 8-6-1988. Subject:- Financial year as uniform accounting year - Removal of difficulties faced by companies during transitional previous year relevant for assessment year 1989-90 and also in subsequent years The concept of uniform accounting year is being brought in form of the assessment year 1989-90, as per section 3 of the Income-tax Act, 1961, as amended by the Direct Tax Laws (Amendment) Act, 1987, so that the first uniform date on which the companies are required to furnish to assessing authorities the statement of affairs, is as at 31st March, 1989, in respect of the companies which may choose to close their accounts as on 31st March, there is no bar under the Companies Act, 1956, provided the financial year does not exceed 18 months. The companies concerned may seek approval of the Registrar, to grant extension of time for holding annual general meeting under the second proviso to sub-section (1) of section 166 and/or permission to extend financial year under the proviso to sub-section (4) of section 210 of the Companies Act, 1956, to the extent permissible under the Act. All the Registrars have been suitably advised in the matter.