TMI Blog1938 (1) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... sessees share of the profits of the firm was 11/39. After the accounting year, namely on December 17th, 1931, the partners agreed in a deed that the assessees share of the profits of the firm should hence forward be 11/30. The partners remained the same, but their respective shares in the profits were altered. The assessment year was April 1932 of March 1933, and the deed referred to was in operat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mbers thereof shall, subject to the provisions of this Act be made as if the firm had been constituted at the time of making the assessment and as if each member had received a share of the profits of that year proportionate to his interest in the firm at the time of making the assessment. There is no question here of a firm having been newly constituted. The only question is whether a change h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e a change occurs in the constitution of a firm, the mutual rights and duties of the partners in the re-constituted firm remain the same as they were immediately before the change, as far as may be. Section 38 provides : A continuing guarantee given to a firm or to a third party in respect of the transactions of a firm is, in the absence of agreement to the contrary revoked as to future tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 38 and 63 where they mention the phrase `change in the constitution of a firm are, it seems to me refereeing to a change in the personnel of the firm that, is a change in the persons who are partners in the firm. In my opinion there was no change in the constitution of the firm on December 17th, 1931 within the meaning of Section 26(1) of the Indian Income Tax Act. Consequently Section 26(1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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