Law: Income Tax Act, 1922

Section: 2(11),66A

Income-tax Act, 1922 -- Sections 2(11), 66A --Previous year -- Consolidated assessment for income over of period of 15 months ending 30-6-1959 relevant to the assessment year 1959-60 -- Whether justified -- Leave to appeal granted to determine the question -- Appeal to Supreme Court -- Application for special leave for appeal to Supreme Court barred by time -- Application within time taking into account the date of dismissal of application by High Court for certificate of fitness to appeal to Supreme Court -- Delay in making application to Supreme Court condoned -- ORDER The Order of the Court was passed by NASIM HASAN SHAH, J.--- The facts which form the background briefly stated are that the respondent filed two returns ; one for the assessment year 1959-60 and the other for 1959-60 (supplementary) in respect of income for the period of fifteen months from 1-3-1959 to 30-6-1959. The returns of income were filed on the basis of estimate as no accounts had been maintained and the respondent had not been taxed prior to the year 1959-60. Since it was a no account case, the Income-tax Officer thought it fit to frame a consolidated assessment for the charge year 1959-60, i.e. for fifteen months although the respondent had filed two separate returns. The respondent appealed to the Appellate Assistant Commissioner who held that even in a no account case the previous year according to Section 2(11) of the Income-tax Act should be a period of 12 months and if the Income-tax Officer had thought that the previous year in respect of the assessment year 1959-60 was the period ending on 30-6-1959 (according to Finance Ordinance, 1959 which had taken effect from 1-7-1959) he was still not justified in stretching the period to fifteen months. He expresses the view that the assessment for the first three months would in that case fall in the year 1958-59 and that would be consistent with the provisions of Section 6(1) of the Finance Ordinance, 1959. He, accordingly, on a proportionate basis reduced the income for the assessment year under consideration by Rs. 2,000 to bring it in conformity with the period of twelve months falling in the year 1958-59. The Income-tax Appellate…

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