TMI Blog1956 (11) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... ird share. On the 16th July, 1950, Amar Nath retired from the partnership and on the following day the firm was reconstituted, the name being changed to Messrs. Bans Gopal Kedar Nath and the partners being the appellant and Kedar Nath each of whom had a half share. The reconstituted firm carried on the business previously conducted by the former firm and took over the assets and liabilities of the latter. The firm of Bans Gopal Kedar Nath did not succeed financially and disputes having arisen between the partners the firm was dissolved on the 18th April, 1952, from which date it discontinued business. By assessment order date the 19th July, 1952, the Sales Tax Officer, Etawah, who is the first respondent, determined the turnover of the firm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw his certificate under section 8 of the Act. The learned Judge was of opinion that the two assessment orders were valid orders and he accordingly dismissed the petition. The appellant's principal contention is that a partnership firm cannot, after it has been dissolved, be assessed to sales tax. It was further argued, although the point was not very strongly pressed, that even if such an assessment can be made the tax cannot be recovered from the persons who were partners of the firm at the time of its dissolution. Now both orders of assessment in the present case were made after the date upon which it is admitted that the reconstituted firm Bans Gopal Kedar Nath ceased to exist; and in each case the Sales Tax Officer sought to assess n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d this aspect of the matter clearly influenced the learned Judge. The question is however whether the Act makes provision for the assessment and collection of tax in such circumstances. In our opinion it does not. The position which arises on the dissolution and discontinuance of a firm is analogous to that which arises on the disruption of a Hindu joint family. A difficulty arose under the Income-tax Act when an undivided family had received income in the year of account but was no longer in existence as such at the time of assessment. That difficulty was met by the introduction into the Act of section 25A. Unless however the provisions of this section have application proceedings cannot be taken against a Hindu joint family after it is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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