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Issues:
1. Interpretation of section 43B of the Income-tax Act regarding unpaid liabilities towards employees' funds. 2. Application of the proviso to section 187(2) of the Act in a case of partnership dissolution. 3. Determination of partnership dissolution based on partnership deed clauses. Analysis: Issue 1: The first issue pertains to the interpretation of section 43B of the Income-tax Act concerning unpaid liabilities towards employees' funds. The Income-tax Officer added the unpaid liabilities to the assessed income, which was upheld by the Commissioner of Income-tax (Appeals). However, the Tribunal opined that section 43B was not applicable to the mentioned items. The court agreed with the Tribunal's interpretation, stating that there was no prohibition under section 43B for disallowance of deductions related to employee welfare funds. Therefore, the unpaid liabilities for employees' funds could not be disallowed, ruling in favor of the assessee against the Revenue. Issue 2: The second issue involves the application of the proviso to section 187(2) of the Act in a case of partnership dissolution. The dispute arose from the death of a partner, leading to a disagreement on whether the partnership was dissolved. The Commissioner of Income-tax (Appeals) invoked the proviso to section 187(2), directing the Assessing Officer to frame separate assessments for different accounting periods. The Tribunal rejected the argument that the partnership continued based on the partnership deed clause, citing the proviso that deemed the firm dissolved upon the death of a partner. The court concurred with the Tribunal's decision, emphasizing that the firm stood dissolved despite the partnership deed clause to the contrary. Issue 3: The final issue concerns the determination of partnership dissolution based on partnership deed clauses. The court analyzed the partnership deed clause stating that the firm would not dissolve upon the death of a partner. Referring to a Supreme Court decision, the court held that in the absence of such a provision for continuation, section 188 of the Act would apply to a partnership's succession. Consequently, the court ruled in favor of the Revenue against the assessee, answering the remaining questions in the negative. In conclusion, the judgment addressed various legal issues related to the interpretation of tax provisions and partnership dissolution based on specific clauses in the partnership deed. The court's detailed analysis and reliance on relevant legal precedents resulted in a comprehensive resolution of the disputes presented before it.
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