TMI Blog1966 (11) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... issolution of the firm, when the appellant was not entitled to claim its benefit even on the assumption that there was a dissolution as alleged. It appears to be necessary that the High Court should now be asked to decide the writ petition, after recording a finding on this question of fact in the light of the law explained - Civil Appeal No. 179 of 1966, - - - Dated:- 1-11-1966 - SHAH J.C., BHARGAVA V. AND RAMASWAMI V. JJ. O.P. Malhotra and R.N. Sachthey, for the respondents. A.N. Sinha, C.D. Garg and P.K. Mukherjee, for the appellant. -------------------------------------------------- BHARGAVA, J.- The appellant-firm was carrying on business as commission agents in cotton and food-grains in Punjab, so that its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -firm. The High Court dismissed the petition, and consequently, the appellant has come up to this Court on certificate granted by the High Court. The point raised on behalf of the appellant was that, under the Act, there was no provision for making an assessment after the dissolution of a firm, even in respect of income earned by the firm while it was in existence, and consequently, the order passed by the Assessing Authority on 12th March, 1962, was void. The High Court in dealing with the petition, held that the following facts were admitted: (1) that the firm was in existence and actually did business during the period 1959-60 for which assessment has been made; (2) that proceedings were initiated long before the alleged date of di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ales tax, it is a legal entity. If that be so, on dissolution, the firm ceases to be a legal entity. Thereafter, on principle, unless there is a statutory provision permitting the assessment of a dissolved firm, there is no longer any scope for assessing the firm which ceased to have a legal existence. As in the present case, admittedly, the firm was dissolved before the order of assessment was made, the said order was bad." Thereafter, he referred to certain decisions of the various High Courts and, after considering the reasons given by the High Courts, came to the conclusion that "for the reasons we have already given earlier, we cannot accept the validity of the reasons given in the said judgments for sustaining an assessment on a dis ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
