Law: Income Tax Act, 1922

Section: 2(11),10(2)

Income-tax Act (XI or 1922)-­--Ss. 2(11) & 10(2)--Accounting date changing of-Assessee opting specific accounting date by changing existing date--Cannot do so without obtaining prior consent of Income-tax Officer--Income-tax Officer vested with absolute discretion in such matter, to put such conditions as thinks fit to impose and may refuse to allow certain allowances otherwise admissible-Income-tax Officer acceding assessee's request with condition that depreciation allowable for nine months instead of 12 months-Income-tax Officer, held, not acted harshly or unreasonably in exercise of discretionary power-Allowing of 12 months depreciation by Appellate Assistant Commissioner set aside by Tribunal. ORDER MUHAMMAD MAZHAR ALI (CHAIRMAN).-Of these three appeals two involving in the assessment year 1975-76 are cross-appeals while the one pertaining to char-,- year 1976-77, is at the instance of the assessee, a private limited company. These appeals are directed against the combined order of the learned Appellate Assistant Commissioner, A Range. The departmental appeals call in question the order of the learned Appellate Assistant Commissioner whereby he has ordered the allowance of depreciation of Rs. 5,60,283 for 12 months instead of Rs 4,20,212 allowed by the Income-tax officer for nine months only. The assessee's appeals on the other hand, commonly assailed certain add-backs out of expenses debited to profit and loss account, and working of the taxable income without giving effect to the brought-forward losses before adjustment of allowable depreciation. 2. We first take up the departmental appeal for the charge year 1975-76. The relevant facts giving rise to this appeal are these. The assess vide their counsel's letter No. D. T. 6622, dated 19-6-1976 requested the Income-tax officer concerned for change of accounting dated from 25-3-1975 to 30-11-1974, to respect of the year under appeal. The assessing officer conceded to the appellant's requests on the condition that "Depreciation would be allowed for nine months only during the assessment year 1975-76". The assessee, vide their letter dated 28-8-1974, addressed to the Income-tax Officer, stating that…

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