TMI Blog1989 (12) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee firm died and a new partnership deed was executed. It was, therefore, a case of succession of one firm by another. Depreciation was for both the periods. The fast period commenced from1-1-1981up to18-7-1981. The ITO, however, did not allow full depreciation but only allowed deprectiation proportionately. 3. The assessee appealed to the CIT(A) before whom it was stated that the assessee firm was constituted by four namely, Smt. Bimla Jain, Smt. Satish Jain, Smt. Neelam Jain and Shri Rajesh Jain. On18-7-1981Smt. Bimla Jain died. Since there was no clause in the partnership deed providing for continuation of partnership business in the event of death of any of the the partners, the firm stood dissolved on the death of Smt. Bimla Ja ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly supported the the impugned order of the AAC on the point and relied upon the decision of the Supreme Court in Malabar Fisheries Co. v. CIT [1979] 120 ITR 49. Reliance has also been placed on the decision of the Tribunal in ITO v. Lalit Exhibitors [1987] 20 ITD 239 (Jp.) as also the decision of the Tribunal in Sita Ram Saluja v. ITO [1982] 1 ITD 754 (Chd.). 5. There is no dispute that in the instant case two separate returns were filed do behalf of the assessee firm one for the period beginning from 1.1.1981 to 18.7.1981 and the other for the period beginning from 20.7.1981 to 31.12.1981 and that for both these periods two separate assessments were framed by the ITO. It is, therefore, clear that two separate assessments were framed by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts were " sold " to the existing firm after the dissolution of the earlier firm. In the case of Malabar Fisheries Co. the Supreme Court had the occasion to consider the provision contained in clause (b) of sec. 34(iii) of the Income-tax Act, 1961. This provision, inter alia, lays down that if any ship, machinery or plant is sold or otherwise transferred by the assessee to any person at any time before the expiry of eight years from the end of the previous year in which it was acquired or installed, any allowance made u/s 33 shall be deemed to have wrongly made. In that case the firm consisting of four partners carried on six different businesses during the accounting period relevant to the asst. years 1960-61 to 1963-64. It installed variou ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
