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Section 188 and Section 187(2) [as amended with effect from 11-4-1975] of the Income-tax Act, 1961 - Firm - Registration - Succession of one firm by another firm - Assessee-firm was consisted of three partners B, R and K - B died on 9-4-1974 and a new deed of partnership was executed on 15-4-1974 - Whether there was a succession of one firm by another firm and, thus, two separate assessments were to be made for aforesaid periods - Held, yes Facts The assessee-firm had three partners, B, R and K. B died on 9-4-1974 and new deed of partnership was executed on 15-4-1974 whereby in place of deceased, B, his widow was taken as a partner. For the assessment year 1975-76, the assessee filed two returns, one for the period ending 9-4-1974 and other for the period ending 13-11-1974. The ITO, however, held that there should be only one assessment for the whole period. On appeal, the Commissioner (Appeals) held that in the absence of any clause or agreement that with the death of a partner, the firm would not be dissolved, the legal position was that in the absence of such contract, the death of a partner resulted in dissolution by operation of the Indian Partnership Act, 1932, and, therefore, there must have been two separate assessments. On appeal by the revenue, the Tribunal also upheld the order of the Commissioner (Appeals). On reference: Held As a result of addition of a proviso to section 187(2) with effect from 1-4-1975 it was really section 188 which was applicable to the facts and circumstances of the instant case. In view of the legal position emerging from addition of the proviso to sub-section (2) of section 187 on the facts and circumstances of the instant case, the Tribunal was justified in holding that two separate assessments should be made-one for the period up to 9-4-1974 and the other for the period from 10-4-1974 to 13-11-1974. Accordingly, the order of the Tribunal was to be upheld. B.K. Rawat for the Applicant. L. Nema for the Respondent. JUDGMENT Ojha, CJ. - The Tribunal, Jabalpur Bench, has referred the following question to this Court for its opinion under section 256(1) of the Income-tax Act, 1961 ('the Act'): "Whether, on the facts and in the…

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