TMI Blog1983 (9) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... ne 30, 1967, which required to be separately assessed and that it was not a case of a change in the constitution of the firm governed by the provisions of section 187 ? " The reference has arisen at the instance of the Department and relates to the assessment year 1968-69, accounting period ending on June 30, 1967. M/s. Raghumal Ashok Kumar was being assessed as a registered firm. It derived income from a wholesale business in cotton cloth. The firm was constituted under an instrument of partnership dated April 9, 1962. On March 30, 1967, one of the partners died. On April 25, 1967, a new partnership deed was executed which was to have effect from April 1, 1967. For the assessment year 1968-69, two returns were filed in the name of M/s. R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowed the decision of the Bombay High Court in Bhausa Ganusa Pawar Co. v. CIT [1966] 62 ITR 75, wherein it was observed that the legal effect of the death of the partner of the old firm was itself dissolution and the firm thereafter constituted is a new firm and that the mere circumstances that the business continued without interruption and the new firm came into existence from the moment of the death of the deceased partner of the old firm is not sufficient to hold that there was a mere change in the constitution of the old firm. The assessment was set aside and the case restored by the Tribunal to the file of the ITO for framing proper assessments on the two firms in the light of the observations made by the Tribunal. Subsequently, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same High Court in Nandlal Sohanlal v. CIT [1977] 110 ITR 170, and followed in CIT v. Jagat Ram Om Prakash [1979] 116 ITR 266. There was also a decision of the Andhra Pradesh High Court in Addl. CIT v. Visakha Flour Mills [1977] 108 ITR 466 [FB], which was in favour of the construction contended for by the Department but, as noted earlier, this Full Bench Decision has been overruled by a larger Bench in Addl. CIT v. Vinayaka Cinema [1977] 110 ITR 468. All the above cases were cited and considered by a Division Bench of this court in CIT v. Sant Lal Arvind Kumar [1982] 136 ITR 379. The Division Bench after having carefully gone through all these decisions came to the conclusion that the view taken by the majority of judicial decisions is t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
