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2010 (11) TMI 606 - AT - Income TaxReassessment - Validity of notice - Business income or other sources - assessment of firm - Consequent on decontrol of coffee trade, the Coffee Board dispensed with the business with the assessee and then the assessee let-out its go-downs for storage of commercial goods and collecting ware-housing charges - assessee, according to the AO, vide its letter dated: 26.11.2008 had admitted that it was a partnership firm and also provided a copy of Deed of Partnership entered into on 1.8.1995 - it is clear that when there is a change in the constitution of a firm, it is for the assessee to seek again status of a 'firm' for the purpose of an assessment by filing a certified copy of the revised deed of partnership - assessee had provided a copy of the partnership deed dated: 1.8.1995 and as per clause 6 of the Deed of partnership entered into the partnership is terminable AT WILL - Held that: status of the assessee is of firm Regarding business or other income - assessee had not continued the business of curing on its own as it did when it was tagged with the Coffee Board, however, permitted others like Longway Trade-links to cure coffee in its premises for a consideration - It is also seen that the expenses incurred, employees employed, books of accounts maintained were common and, thus, income derived from this business has, no doubt, to be assessed as business income only. - In a nut-shell, the income of the assessee is to be assessed under the head 'income from business' only in stead of bifurcating its income under various heads as did by the AO in his impugned orders for all the AYs under challenge - Appeals are partly allowed
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