Change of previous year relevant to the assessment year 1988-89--Request regarding - Income Tax - Instruction

Change of previous year relevant to the assessment year 1988-89--Request regarding Circular No. Instruction Dated 4/2/1988 The Direct Tax Laws (Amendment) Act, 1987, has, inter alia, provided that `previous year' in relation to the assessment commencing with 1st day of April, 1989, means the period which begins with the date immediately following the last day of the previous year relevant to the assessment year commencing on the 1st day of April, 1988, and ends on the 31st of March, 1989. 2. With a view to avoid various problems which may arise in the transitional year, there may be assessees who may like to extend their previous year relevant to the assessment year 1988-89 to 31st March, 1988. Such requests for the change of accounting year may be liberally allowed by the assessing authorities under the provisions of section 3(4) of the Income-tax Act, 1961, subject to the condition that the adoption of such a longer previous year does not result in any loss of revenue. 3. These instructions may be brought to the notice of the officers working under you and may also be widely publicised through Chambers of Commerce and other trade associations, etc., in order that the assessees can take recourse to the provisions of section 3(4) of the Income-tax Act, 1961.