COMMISSIONER OF INCOME TAX Vs. NUFORAM INDUSTRIES

JUDGEMENT

(1.) AT the instance of the Revenue in relation to the assessee's case for the assessment year 1978 -79, the 'following two substantial questions of law have been referred for our opinion under Section 256(1) of the Income -tax Act, 1961 :

(2.) THE facts leading to the reference of question No. 1 are as follows :

(3.) WE are also in respectful agreement with the view expressed by the Madras High Court in Rockweld Electrodes India Ltd.'s case : [1990]185ITR62(Mad) . As held by the Madras High Court, the concept of 'assessment year' must be understood in the manner prescribed under the provisions of the Income -tax Act and not with reference to a particular assessee. Whenever the assessee is permitted to get relief for a specified number of consecutive assessment years, the assessment years should be taken in the natural sequence. Irrespective of the change of the assessment year of the assessee, the period of four years will have to be reckoned on the basis of definition of 'assessment year' as contained in Section 2(9) of the Income -tax Act, 1961.