Law:

Section:

Section 187 of the Income-tax Act, 1961 - Firm - Registration - Change in constitution of - Assessment year 1973-74 - Assessee-firm consisted of seven partners - One of partners retired on 6-10-1972 - Remaining partners executed a new partnership deed on 12-10-1972 - Whether it was a case of reconstitution calling for one assessment - Held, yes FACTS The assessee-firm consisted of seven partners. One of the partners retired on 6-10-1972. The remaining partners executed a new partnership deed on 12-10-1972 with effect from 7-10-1972. For the assessment year 1973-74 the assessee filed two returns- one for the period 1-4-1972 to 6-10-1972 and another for the period 7-10-1972 to 31-3-1973. The ITO disallowed the assessee's claim and made one assessment. However, on second appeal, the Tribunal allowed the assessee's claim. On reference: HELD Following the decision in the case of CIT v. Shiv Shanker Lal Ram Nath [1977] 106 ITR 342 (All.) and in view of provisions of section 187(2), the instant case was of reconstitution calling for one assessment for the entire year and, therefore, the Tribunal was not justified in holding that two assessments were to be made. CASES REFERRED TO CIT v. Shiv Shanker Lal Ram Nath [1977] 106 ITR 342 (All.) and Vishwanath Seth v. CIT [1984] 146 ITR 249/ 18 Taxman 226 (All.)(FB). JUDGMENT Reddy, CJ. - No one appears for the respondent-assessee. Heard counsel for the revenue. 2. The following question is referred under section 256(1) of the Income-tax Act, 1961 ('the Act'): "Whether, on the facts and in the circumstances of…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492