2001 (2) TMI 19 - HC - Income Tax

The petitioners are three of the four sons of one Abdul Rasheed who was a partner in the firm on which an assessment was made for the year 1962-63 the year preceding the dissolution of the firm. The property of the father in the hands of the sons is sought to be attached for the recovery of the tax arrears for that year. - The firm against which the assessment was made was dissolved with effect from March 18,1962. The father of the petitioners who was a partner died in the year 1958. He certainly was not a partner in the firm during the assessment year 1962-63 and no liability can be cast on his legal representatives solely on the ground that dissolution took place on March 18, 1962, nearly four years after the death of the partner.

Summary

The High Court of Madras ruled that the legal representatives of a deceased partner cannot be held liable for tax arrears of a firm if the partner was not part of the firm during the assessment year. The court set aside the orders and allowed the writ petitions. Case citation: 2001 (2) TMI 19 - MADRAS High Court. Judge: R. JAYASIMHA BABU.