TMI Blog1941 (3) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... ietor of a business carried on under the style of the National Cycle Importing Company. Up to the end of the Samvat year 1994, that is, up to the 23rd October 1938, this business was owned by the assessee in partnership with two others, Vanamali Premchand Shah, and Fulchand Bhaichand Shaw. On the 24th October 1938, the first day of the Samvat year 1995, the assessee took over the entire business and the partnership was dissolved as from that date. In the Samvat year 1995 the Income-tax Officer assessed the total income of the business for the year 1994 at Rs. 16,500. The assessee's share of this amount was Rs. 7,427 and Fulchand Bhaichand Shaw's share Rs. 4,950, and they were assessed to income-tax on these amounts respectively. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther person shall, subject to the provisions of sub-section (4) of Section 25, each be assessed in respect of his actual share, if any, of the income, profits and gains of the previous year: Provided that, when the person succeeded in the business, profession or vocation cannot be found, the assessment of the profits of the year in which the succession took place up to the date of succession, and for the year preceding that year shall be made on the person succeeding him, in like manner and to the same amount as it would have been made on the person succeeded or when the tax in respect of the assessment made for either of such years assessed on the person succeeded cannot be recovered from him, it shall be payable by and recoverable from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ership succeeds to the business within the meaning of Section 26(2). What the Court has to decide is whether the Commissioner is right in the opinion which he has formed that a firm cannot be found when it has been dissolved. The Commissioner dissociates the partners in the firm from the firm itself. This appears to us to be going too far. It is quite true that a firm for purposes of assessment to income-tax in some cases is regarded as a unit, but that does not mean that in all cases a firm must be looked upon as a juridical person. Section 2(6B) says that the words firm partner and partnership have the same meanings respectively as in the Indian Partnership Act, 1932, and Section 4 of that enactment states that persons who have ..... X X X X Extracts X X X X X X X X Extracts X X X X
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