TMI Blog1991 (3) TMI 133X X X X Extracts X X X X X X X X Extracts X X X X ..... the case, the Income-tax Appellate Tribunal was correct in law in holding that the firm got automatically dissolved on the death of Shri Phool Chandra, partner, and, thereafter, the business was carried on by a new firm consisting of the remaining three partners ? (2) Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was correct in law in not acceptin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 73, to March 31, 1974. The assessee claimed that one of the partners, Shri Phool Chandra, died on June 27, 1973, and that, thereafter, a fresh partnership deed was executed between the remaining three partners on July 1, 1973. They also pointed out that the first partnership deed did not contain a clause that death shall not operate as dissolution, nor did it provide for the heir or successor of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the business will be 'at will'. Moreover, after the death of one of the partners, a new partnership deed was also executed by the remaining three partners. In such a situation, the Tribunal was right in holding that it was not a case of reconstitution but succession. For the above reasons, the questions referred are answered in the affirmative, i.e., in favour of the assessee and against the Re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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