TMI Blog1970 (3) TMI 128X X X X Extracts X X X X X X X X Extracts X X X X ..... as evidenced by a registered partition deed. The business was allotted to Motilal. On 2nd March, 1963, Motilal was assessed for the quarter ending 30th June, 1959, under section 12(5) of the Orissa. Sales Tax Act. The assessment was made under section 19(3) which runs thus: "19. (3) If any business carried on by a firm, Hindu undivided family or an association of persons has been discontinued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies and the Tribunal held that the business of the Hindu undivided family had discontinued inasmuch as after partition the business which belonged to the joint family became the separate property of Motilal. In his hands, it no longer continued to be joint family business and as such he was liable to be assessed under section 19(3) in respect of the turnover of sales effected by the joint family d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e said to have been discontinued. Two views are possible. One is that so long as the integrity of the business has not been affected in any manner, it cannot be said to have been discontinued even though it has passed to a different hand by succession. The alternative view is that the moment the ownership changes, the business has discontinued even though its integrity might not have been affected ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s on the English Income Tax Acts. The same view has been taken in Commissioner of Income-tax v. K.H. Chambers, Madras(1). 4.. The position, therefore, is that if the integrity of the business continues in the hands of the successor, there is no discontinuance of business even if there be a change in the personnel or the owner of the business. In the present case, the Hindu undivided family had ..... X X X X Extracts X X X X X X X X Extracts X X X X
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