COMMISSIONER OF INCOME TAX Vs. LAKSHMAN SWAROOP GUPTA

JUDGEMENT

(1.) AT the instance of the Commissioner of Income-tax the Income-tax Appellate Tribunal, Delhi Bench " C ", has referred the following question for our opinion ;

(2.) THE circumstances which have given rise to the question aforesaid, briefly, stated are these: Lakshman Swaroop Gupta is the proprietor of M/s. Lakshman Swaroop Gupta & Bros., Bharatpur (hereinafter called " the assessee"), who deals in motor parts, electrical goods, miscellaneous articles, tyres and tubes. In the course of assessment proceedings for the assessment years 1961-62 (the previous year being April 16, 1960, to April 15, 1961) the Income-tax Officer found a cash credit entry in the sum of Rs. 20,000 dated April 7, 1961, in the name of Smt. Satyavati Devi, the wife of the assessee. THE assessee could not explain the entry satisfactorily and the amount of Rs. 20,000 was added to the assessee's total income as income from other sources for the assessment year 1961-62 and subjected to tax. An appeal was taken before the Appellate Assistant Commissioner and it was contended on behalf of the assessee that the amount had been included in the computation of total income under the head "Other sources" and the previous year should have been the financial year and as the amount of Rs. 20,000 appeared in his books of account on April 7, 1961, if at all taxable, it should fall for consideration in the assessment year 1962-63 and not in the assessment year 1961-1962. THE Appellate-Assistant Commissioner accepted the assessee's contention and deleted the said amount of Rs. 20,000 from the computation of the income-tax for the assessment year 1961-62 directing the Income-tax Officer to consider this amount in the assessment year 1962-63 after considering all the evidence. THE department rest contended with the decision.

(3.) IT is admitted that for the assessment years 1961-62 and 1962-63, the previous years of the assessee were between the periods of April 16, 1960, to April 15, 1961, and April 16, 1961, to April 15, 1962, respectively. The endeavour of the learned counsel for the revenue is to assign to the assessee the previous year as envisaged by Section 3(1)(a) for the purposes of the computation of the tax on Rs. 20,000 as distinguished from his opted previous year under Section 3(1)(b). The term " previous year ", has been defined in the Act. Let us read Sections 3(1)(a) and 3(1)(b):