| Case ID |
1a83d70d-d70c-46c6-9ef8-ee0e616f2b0b |
| Body |
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| Case Number |
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| Decision Date |
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| Hearing Date |
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| Decision |
The Tribunal ruled that the assessee's business was newly established, and the previous year would end with the financial year as per the provisions of the Income-tax Act. The Tribunal confirmed the dissolution of the firm on March 31, 1980, but stated that the assessee could not choose a previous year exceeding 12 months. Therefore, no question of law arose from the Tribunal's order, and the applications were dismissed. The decision emphasizes the importance of adhering to the statutory definitions of previous years in tax law. |
| Summary |
In the case of Kisan Ghar Varanasi v. Commissioner of Income Tax, the Allahabad High Court addressed the issue of the previous year for tax assessment. The assessee, a firm consisting of four partners, dissolved its business on March 31, 1980, and two partners formed a new firm on May 15, 1980. The new firm operated for 13.5 months and filed a return for the assessment year 1982-83, claiming that it was not required to file for 1981-82. The Income Tax Officer disagreed, leading to appeals and references. The Tribunal upheld the assessment officer’s decision, stating the previous year could not exceed 12 months. This case highlights critical aspects of tax law, specifically the definitions of previous years and the implications of business dissolution and reconstitution. |
| Court |
Allahabad High Court
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| Entities Involved |
Not available
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| Judges |
B.P. Jeevan Reddy, C.J.,
V.N. Mehrotra, J.
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| Lawyers |
Not available
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| Petitioners |
Kisan Ghar Varanasi
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| Respondents |
Commissioner of Income Tax
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| Citations |
1991 SLD 1595,
(1991) 188 ITR 810
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| Other Citations |
Esthuri Aswathaiah v. CIT [1966] 60 ITR 411 (SC),
Jamuna Prasad Gur Prasad v. CIT [1986] 159 ITR 986 / 26 Taxman 228 (All.),
General Commercial Corpn. Ltd., In re [1954] 26 ITR 316 (Mad.)
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| Laws Involved |
Income-tax Act, 1961
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| Sections |
256,
3
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