AIR 1965 ANDHRA PRADESH 283 ::(1966) 59 ITR 57 ::1965 (2) ITJ 46 ::(1965) 2 Andh WR 41 ::ILR (1966) Andhra Pra 856

Andhra Pradesh High Court

Hon'ble Judge(s): P. Satyanarayana Raju, N. Kumarayya , JJ

Income-Tax Act (11 of 1922) , S.2(11)(a), S.4, S.9(2)— "Previous year" - Sometimes, it may be of longer period than 12 months - Assessment of property when previous year is of 18 months. The term "previous year" is defined in S. 2(11)(a). It substantially means the accounting year previous to the assessment year comprised of 12 months. There can be only one previous year to a given year of assessment having regard to the drift of Ss. 2(11) and 4. Though ordinarily it is of full 12 months, it may sometimes be of a longer or shorter period. A change from the previous year adopted to a new previous year may be effected with the consent of the Income-tax Officer. And when in the particular circumstances, it has been extended to 18 months, because the previous year cannot be split there can be only one previous year to a given year of assessment; in such a case the full period from the end of the previous year for the preceding year's assessment to the end of the new accounting date has to be taken into consideration. If the taxable source of income is property consisting of buildings or lands appurtenant thereto, the tax has to be paid in respect of its annual value which expression has to be understood as explained in sub-Cl. (2) of S. 9. Section 9 which provides for levy of tax not on actual but on the notional income of the property and fixes t....