COMMISSIONER OF INCOME-TAX, MADRAS vs K. SRINIVASAN AND K. GOPALAN.

The Supreme Court interpreted the term 'end of the previous year' in Section 25(4) of the Indian Income-tax Act, 1922, to mean the conclusion of the full accounting year preceding the date of business discontinuance. The Court held that the assessee firm was entitled to tax exemption only for the period from 1st July, 1939, to 29th February, 1940, and not for the entire 20 months claimed. Furthermore, it clarified that the Income-tax Officer cannot make accelerated assessments for the year of succession, ensuring that exemptions and apportionments are properly assessed in the relevant assessment year under Section 3 of the Act.