Law: Income Tax Act, 1922

Section: 2,2(11)(i)(a),3,4,6,10

[Income Tax Act, 1922 (XI of 1922)].........Sections 2(11)(i)(a), proviso, 3,4,6,10--Previous year-Condition precedent to change of previous year by assessee, as envisaged in the proviso-Whether should not override the limitation not warranted by the Income Tax Act, itself-Held yes-Power of the Income Tax Officer under the proviso-Whether qualified-Held yes Assessment and levy-of super tax on total income of three months at the rate applicable to twelve months notional income as a condition for permitting change of previous year by assessee-W/tether without legal sanction-Held yes. Cases referred to: Ikram Bus Service v. Board of Revenue (PLD 1963 S.C. 564); Kohinoor Textile Mills v. The Province of Punjab (PLD 1972 SC 100) and the Guardian of the Poor of the West Derby Union v. The Metropolitan Life Assurance Society (1897) AC 647. ORDER The judgment of the Court was delevered by MUHAMMAD AFZAL Lowe, .J. The following question of law arising out of the Tribunals order dated 31-12-1968 has been referred to this Court for its opinion, by the Tribunal,. vide-its order dated 21-7-1969 under Section 66(2) of the Income Tax Act: "Whether on the facts and in the circumstances of the case the Appellate Tribunal was justified in holding that despite proviso to Section 2(11)(i)(a) the Income Tax Officer could not levy the tax on the total income of Rs. 4,083 at the rate applicable to 12 months income i.e. 4 X 4083= 16332)?" 2. The facts as disclosed in the "statement of the case" are that the respondents accounting year ended on 31st March but under the Finance Ordinance, 1959; in consonance with the change of the Financial year from 31st March to 30th June, the definition of the previous year as embodied in Section 2(l1) of the Income Tax Act was amended and twelve months terminus date of 31st March was substituted for 30th June. It appears that the respondent wanted to alter his previous year to coincide with the closing period brought about by the Finance Ordinance, 1959. It also transpires from the record that for the assessment year 1959-60, in addition to a regular return covering the period from 1-4-1958 to 31-3-1959, the assessee filed a separate return for the…

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