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TMI Blog1982 (11) TMI 37X X X X Extracts X X X X X X X X Extracts X X X X ..... before the assessee could switch over from accrual basis to receipt basis, it was obligatory to obtain permission from the Income-tax Officer before the end of the previous year ? 3. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in holding that one application for assessment years 1968-69 and 1969-70 was not maintainable notwithstanding that the appeals for the two years were disposed of by consolidated order and only one copy of the order was served ? " Facts relevant for question No. 2 are being noticed as we do not propose to decide questions Nos. 1 and 3 for reasons to be stated in the order at the appropriate place. In the assessment year 1968-69, with which this reference ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cording to the Tribunal what was changed by the assessee was the method of furnishing the return, which could not be done for two reasons, one consistency and the other inability to do so unilaterally. We take up question No. 3, first as learned counsel for the Revenue had taken a preliminary objection that it does not arise out of the order passed by the Tribunal u/s. 254. According to him decision of more than one appeal by a consolidated order could not entitle the assessee to move only one application under sub-s. (1) of s. 256. And as the assessee did move only one application and confined it at the time of hearing to the assessment year 1968-69, the question should be answered in the negative and against the assessee. On the other h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itch over was other than bona fide. It will have to be decided on the facts and circumstances of each case. In New Victoria Mills Co. Ltd. v. CIT [1966] 61 ITR 395 (All), it was observed (headnote) : "Though it is open to an assessee to change his method of accounting, the change should be bona fide and not a casual departure from the regular method which has hitherto been accepted by him for a number of years. " In another decision, Shiv Prasad Ram Sahai v. CIT [1966] 61 ITR 124 (All), it was no doubt observed (p. 130) : " In the absence of any direct authority, but on first principles it is clear that, once the assessee has adopted the mercantile system of accounting, there is no alternative for the Income-tax Officer but to compute ..... X X X X Extracts X X X X X X X X Extracts X X X X
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