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TMI Blog1990 (11) TMI 138X X X X Extracts X X X X X X X X Extracts X X X X ..... f section 3(1)(e)(i) would not be applicable to the assessee ? 2. Whether, on the facts and circumstances of the case, the Incometax Appellate Tribunal was legally correct in holding that the 'previous year' of the assessee has to be one mentioned in sub-clause (i) of clause (d) of sub-section (1) of section 3 of the Income-tax Act, 1961 ? 3. Whether, on the facts and circumstances of the case, the interpretation of section 3 of the Income-tax Act, 1961, by the Income-tax Appellate Tribunal, that it stipulates that the previous year could not be more than 12 months, was legally sustainable ? 4. Whether, on the facts and circumstances of the case, the Incometax Appellate Tribunal was legally correct in holding that the Income-tax Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1981-82 disclosing its income for the period May 15, 1980, to March 31, 1981. He, accordingly, calculated the income and made the assessment. On appeal, the Appellate Assistant Commissioner agreed with the assessee that there was a dissolution of the firm on March 31, 1980, and that the firm which came into existence on May 15, 1980, was new firm. He held that the assessee had the right to choose its own "previous year" and, accordingly, allowed the appeal. The Revenue questioned the correctness of the appellate order before the Tribunal. The Tribunal confirmed the finding that there was a dissolution on March 31, 1980, but it held against the assessee on the other question. Relying upon the language of section 3, the Tribunal held that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be, or (e) in the case of a business or profession newly set up in the twelve months immediately preceding the said financial year (i) if the accounts of the assessee have been made up to a date within the said financial year and the period from the date of setting up of the business or profession to such date does not exceed twelve months, then, at the option of the assessee, such period, or (ii) if any period has been determined under clause (c), then the period beginning with the date of the setting up of the business or profession and ending with that period, as the case may be ; or . . " The assessee's business was newly set up and it started its "previous year" on May 15, 1980. If so, in terms of the provisions of section 3, it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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