Law: Income Tax Act, 1961

Section: 188

Income-tax-----Firm---Assessment---Death of partner---No agreement that firm would continue despite death of a partner---Death of a partner resulted in dissolution of firm---Two assessments to be made---Indian Income Tax Act, 1961,S.188. Held, that the Commissioner of Income-tax had recorded a clear finding that the partnership deed, dated. July 28, 1974, did not. contain any agreement that in the event of death of a partner the firm shall not stand dissolved. In view of section 42(c) of the Partnership Act, 1932, a firm will stand dissolved in the event of the death of a partner and, therefore, the firm was dissolved on the death of partner B. The Income-tax Appellate Tribunal was correct in law in holding that two separate assessments should be made, one for the period before the death of B, and the other for the period after her death. JUDGMENT The Income-tax Appellate Tribunal, Delhi Bench "C", Delhi, referred the following questions for the opinion of this Court under . section 256(I) of the Income Tax Act, 1961: "(1) Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was, correct in law in holding that two separate assessments should be made, one for the period before the death of Smt. Bishan Devi, and the other for the period after her death? (2) Whether, on the facts and in the circumstances of the case, the…

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