THE COMMISSIONER OF INCOME-TAX vs M/s. McMILLAN & CO.

The Supreme Court held that the Appellate Assistant Commissioner has the authority under Section 31(3) of the Indian Income-tax Act, 1922, to reject the method of accounting adopted by the assessee and accepted by the Income-tax Officer, provided it is necessary to ascertain the true income of the assessee. The Court affirmed that there are no limitations imposed by Section 13 or its proviso on the powers of the Appellate Assistant Commissioner, allowing him to compute income under Rule 33 of the Income-Tax Rules. The appeal was allowed, overturning the High Court's decision.