Inapplicabilioty of Sec.197(2) in case of firm having two partners where one dies.

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..... n the course of the accounting year and the firm got reconstituted thereafter with other persons as partners. 2. The brief facts were:- The firm had two partners A B. A died during the account year and B joined hands with two more partners C D and continued to run the business in the same name and style. The ITO relied on the provisions of sec.187(2)(a) and held that there was only a chang .....

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..... sisting of only two partners one of the partner dies, the firm should ipso facto be treated as dissolved on the date of death of the partner and if the surviving partner continues the same business in partnership with some other persons the provisions of sec.197(2) will not apply. In other words two separate assessment orders have to be passed for the two periods in such cases. 4. This advice of .....

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