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2009 (4) TMI 104 - HC - Income TaxAssessment of a Firm – Dissolution versus Change in Constitution - Tribunal hold that two separate assessments be made for the separate periods ignoring the fact that this is a case covered under section 187(1) of the Income-tax Act, 1961 – tribunal has allowed depreciation for both the periods – assessee was a firm and was constituted with 13 partners, which was engaged in the manufacturing of M S Rounds. With effect from July 1, 1977, two partners retired and by mutual consent, the partnership was treated as dissolved - On July 1, 1977, two other persons, joined as partners along with the eleven remaining partners of the firm and a new partnership deed was executed on July 2, 1977, which was made effective from July 1, 1977, itself – Held that case is covered under section 187(1) of the Act and the Tribunal was not justified in deleting the addition of Rs. 2,00,155 on the ground that there was no question of any addition to be made in the hands of new firm and has ignored the provisions of section 187(1) of the Act – Only one assessment be made.
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