1. JUDGMENT Sultan Hossain Khan, J.-This is an application under Section 66(1) of the Income-tax Act at the instance of the assessee for a decision of this Court on the question as to whether tagging of 9 months and 12 months of two accounting years as one accounting year and making an assessm ent of income of 21 months is permissible under law.
2. The assessee was conducting his business as a proprietorship concern prior to 30-6-72 but since 1-7-72 he converted his proprietorship business into a partnership one with his three sons. The year of accounting in proprietorship concern was from lst of October to 30th September each year but the predecessor of the Petitioners continued his proprietorship business up to 30th June, 1972 when he converted his business into a partnership. The Accounting period of partnership business was from July-June of each year.
3. It appears that the assessm ent has been completed on income of the assessee (predecessor in interest of the petitioners) of 21 months instead of 12 months period. It is true that the assessee while being assessed on the basis of a particular accounting period he converted his business into a partnership and also changed the previous accounting period of his proprietorship business and thus varying the meaning of the term 'previous year'. But he however did not take the consent of the Income-tax Officer a as provided in Section 2(ll)(m)(a) who could lay down conditions for such change. Yet, under no circumstances, an assessment on the basis of income of 21 months can be made by the Income-tax Officer. An assessment of income on the basis of incomes of a period of more than 12 months cannot be done under law. This view, it has been submitted, has been taken by their lordships of the Appellate Division of the Supreme Court of Bangladesh in Civil Appeal No. 120 of 1978 decided on 10th July, 1980. In this view the impugned assessment should be set aside as having been made illegally, and it is accordingly set aside. Accordingly all orders passed by the Tribunal, Joint Commissioner of Taxes and Income-tax Officer are set aside.
4. The case is sent back to the Income-tax Officer for assessment of Income-tax in his best discretion and judgment in accordance with law and in the light of the observations made hereinbefore. The answer to the question posed in this application is given in the negative and this application is allowed.
5. Syed Muhammad Husain, J.-I agree..