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Section 187 of the Income-tax Act, 1961 - Firm - Change in Constitution of Firm - Assessment year 1974-75 - Whether where original partnership deed expressly provided that firm should continue and should not stand dissolved in event of death of any of partners, Tribunal was justified in holding that on death of one of its partners in relevant accounting period there was only a change in constitution of firm and therefore, only one assessment was required to be made for entire accounting year in accordance with section 187 as it stood prior to 1-4-1975 - Held, yes FACTS On the death of one of its four partners in the midst of the relevant account period, the assessee-firm filed two returns, one for the period prior to the date of death and another for the period thereafter claiming that it was a case of succession governed by section 188. The ITO rejected this contention on the ground that the original partnership deed expressly provided that the firm should continue and should not stand dissolved in the event of death of any one of the partners. Accordingly, the ITO held that it was a case of only a change in the constitution of the firm governed by section 187. The AAC as well as the Tribunal affirmed the ITO's orders. On reference : HELD This reference had to be decided on the basis of section 187 as it stood prior to the amendment with effect from 1-4-1975, by which a proviso was added to sub-section (2) of section 187. Therefore, the Tribunal was justified in holding that on the death of one of the partners, there was only a change in the constitution of the firm and that only one assessment was required to be made for the entire accounting year. Note: The case was decided in favour of the revenue. CASE REVIEW Girdharilal v. CIT [1984] 147 ITR 529 (MP) [FB]followed and relied upon. CASE REFERRED TO Girdharilal v. CIT [1984] 147 ITR 529 (MP) (FB). B.L. Nema for the Applicant. B.K. Rawat for the Respondent. JUDGMENT J.S. Verma, J.-This reference under section 256(1) of the Income-tax Act, 1961, is at the instance of the assessee, to answer the following questions of law, namely: "1.Whether on the material on record there is justification in law to hold that…

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