1984 (10) TMI 14 - HC - Income Tax

Summary

The High Court of Andhra Pradesh ruled in favor of the assessee, a partnership firm, regarding the interpretation of section 187 of the Income-tax Act, 1961. The court held that on the death of a partner, there is a dissolution of the partnership firm under section 42(c) of the Indian Partnership Act, leading to two separate assessments for the periods before and after the partner's death. The court also mentioned an amendment to section 187 that supports this interpretation. The Tribunal's decision for two separate assessments was deemed correct.