Change of "Previous Year" u/s 3(4) of Income Tax Act.

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..... /s 3(4) of the I.T. Act from the year ending 31st March, 1976 to an year ending 30th June, will result in a substantial loss of revenue. As a result of the change in the "Previous Year", the entire income of the company for the period from 1st April 1975 to 30th June 1976 will become assessable for the assessment year 1977-78. This would enable the company to skip over the assessment for the asses .....

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..... ear 1976-77. Apart from these tax benefits the Company would not be liable to pay any advance tax during the financial year 1976-77 except in the profits of the period from 1st April 1976 to 30th June 1976 and the shortfall, if any, in its payment of advance tax during the financial year 1975-76 in relation to its profits for the period from 1st April 1975 to 31st March 1976. This is a substantial .....

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..... the device of changing his accounting period in a manner that would cause serious detriment to the revenue. It is further laid down that where an application had been made with the object of causing loss to the revenue, the I.T.O. should submit the case to the Commissioner and obtain his orders thereon. 4. Commissioners are therefore, requested to review such cases where consents given by the I .....

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