KHALSA PROVISIONS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This reference under the I.T. Act raises a very short but interesting question as to the interpretation of s. 153(3) of the I.T. Act, 1961.

(2.) The assessed -applicant is M/s. Khalsa Provisions assessed as a registered -firm. The firm came into existence on October 15, 1962, but its books of account were closed for the first time on 30th November, 1963, i.e., after a period of 13 1/2 months from the date of commencement of the business. The firm filed a return for the assessment year 1964 -65 on 7th June, 1964, including therein its entire income for the period from October 15, 1962, to November 30, 1963. This return was for the assessment year 1964 -65, with which we are concerned in this reference.

(3.) Subsequently, the assessed seems to have thought that the return filed by it on June 7, 1964, was not a valid return inasmuch as the previous year under the I.T. Act of 1961 could not extend beyond a period of 12 months except in cases where the permission of the CBDT had been obtained. It, Therefore, proceeded to file two returns on 18th November, 1964. One of these returns was for the period October 15, 1962, to November 30, 1962, a period of 1 1/2 months, which related to the assessment year 1963 -64. In the other return it declared the income in respect of the period from December 1, 1962, to November 30, 1963, which pertained to the assessment year 1964 -65.