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2020 (9) TMI 822 - HC - Income TaxValidity of demand in respect of firm raised in the name of Partner - TDS u/s 194A - interest paid - failure of the "payee-assessee" to pay the tax directly as per section 191 - fixing of liability on the assessee and its partners as assessee-in-default - Fix the liability to pay the tax on the correct person - HELD THAT:- The burden to prove that the payee-assessee had paid the tax, which the assessee-deductor failed to deduct was placed on the latter ; by production of a certificate from the accountant. The questions are thus answered against the assessee and in favour of the Revenue. It is settled law that a partnership is neither a natural person nor a juris tic person. It has no separate existence than its partners. The liability of a partnership firm is the liability of its partners. As such, fixing the liability of the firm on its partners can never be held to be illegal. In fact, it necessarily has to be fixed on the partners. In the light of the legal nature of a partnership firm, a demand raised on the managing partner can never be vis ualised as a wrong fixation of liability. It can only be seen as a demand made on the person who is managing the affairs of the firm, for and on behalf of all its partners. Such a demand does not in any way amount to a conclusion that the claim against the other partners has been given up, since the liability of the partners is joint and several. We do not find any perversity in the findings of the Appellate Tribunal. The questions raised in the appeal are answered against the assessee and in favour of the Revenue.
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