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Section 187 of the Income-tax Act, 1961 - Firm - Change in constitution of - Whether on death of partner of firm, firm stands dissolved and it is not a case of mere change in constitution of firm - Held, yes - Whether therefore, provisions of section 187(1) and (2) would not apply in such a case - Held, yes FACTS The Tribunal held that the assessee-firm was not dissolved on the death of the partner, and that it was merely a case of change in the constitution of the firm. It further held that the provisions of section 187(1) and (2) would nevertheless govern the assessment of the firm. On reference : HELD In view of the decision in Addl. CIT v. M.K.M. Moosa Bhoy Amin [1984] 148 ITR 88 (Raj.), the Tribunal was not right in holding that the assessee-firm was not dissolved on the death of the partner, and that it was merely a case of change in the constitution of the firm. The Tribunal was also not right in holding that the provisions of section 187(1) and (2) would nevertheless govern the assessment of the firm. Note: The case was decided in favour of the assessee. D.S. Shishodia for the Applicant. B.R. Arora for the Respondent. JUDGMENT M.C. Jain, J.-The Income-tax Appellate Tribunal, Jaipur Bench, Jaipur (for short "the Tribunal"), has referred the following questions for the opinion of this court, vide its statement of the case dated June 30, 1976: "(1)Whether, on the facts and in the circumstances of this case, the Tribunal was right in holding that the assessee-firm was not dissolved on the death of the partner, Shri Ganeshilal, and that it was merely a case of change in the constitution of the firm? (2)If the answer to the above question is in the negative, whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the…

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