ADDITIONAL COMMISSIONER OF INCOME TAX Vs. RAMACHANDRA RAO K

JUDGEMENT

(1.) IN this reference under s. 256(1) of the I.T. Act, 1961, the question referred to us by the INcome-tax Appellate Tribunal at the instance of the Commissioner of INcome-tax is :

(2.) THE facts necessitating the reference of the aforesaid question are as follows :

(3.) THE assessee thereafter preferred an appeal before the Income-tax Appellate Tribunal, Hyderabad, contending, inter alia, that option was given to the assessee under s. 3(1)(b) of the Act to choose the previous year for a new source of income including from salary. As the accounts for a new source of income by way of salary as a judge of the High Court were opened on August 21, 1968, and made up to July 31, 1969, there was no previous year at all for the assessment year 1969-70. THE Tribunal accepted that contention and held that the assessee was entitled to choose a separate previous year for the new source of income by way of salary as a judge of the High Court.