51
[
52"Previous
year" defined.
3. (1)
Save as otherwise provided in this section, "previous year" for the
purposes of this Act, means the financial year immediately preceding the assessment year
:
Provided that, in the case of
a business or profession newly set up, or a source of income
newly coming into existence, in the said financial year, the previous year shall be the
period beginning with the date of setting up of the business or profession or, as the case
may be, the date on which the source of income newly comes into existence and ending
with the said financial year.
(2) "Previous year", in relation to the assessment year commencing
on the 1st day of
April, 1989, means the period which begins with the date immediately following the last
day of the previous year relevant to the assessment year commencing on the 1st day of
April, 1988 and ends on the 31st day of March, 1989 :
53
Provided that where the assessee has adopted more than one period as the
"previous
year" in relation to the assessment year commencing on the 1st day of April 1988 for
different sources of his income, the previous year in relation to the assessment year
commencing on the 1st day of April, 1989 shall be reckoned separately in the manner
aforesaid in respect of each such source of income, and the longer or the longest of the
periods so reckoned shall be the previous year for the said assessment year :
54
[Provided further
that in the case of a business or profession newly set up, or a source
of income newly coming into existence on or after the 1st day of April, 1987 but before
the 1st day of April, 1988 and where the accounts in relation to such business or
profession or source of income have not been made up to the 31st day of March, 1988,
the "previous year" in relation to the assessment year commencing on the 1st day of
April, 1989, shall be the period beginning with the date of setting up of the business or
profession or, as the case may be, the date on which the source of income newly comes
into existence and ending on the 31st day of March, 1989 :
55
Provided also that where the assessee has adopted one or more periods as
the "previous
year" in relation to the assessment year commencing on the 1st day of April, 1988, for
any source or sources of his income, in addition to the business or profession or source of
income referred to in the second proviso, the previous year in relation to the assessment
year commencing on the 1st day of April, 1989, shall be reckoned separately in the
manner aforesaid in respect of each such source of income, and the longer or the longest
of the periods so reckoned shall be the previous year in relation to the said assessment
year.]
(3) Where the previous year in relation to the assessment year commencing
on the 1st day
of April, 1989, referred to in sub-section (2) exceeds a period of twelve months, the
provisions of this Act shall apply subject to the modifications specified in the rules in the
Tenth Schedule.]