9911796707
TMI Blog1977 (5) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... on that date. With effect from 18th Aug., 1972 a new partnership was formed amongst the two surviving partners Surjit Singh and Kuljit Kaur and Smt. Parkash Kaur, wife of the deceased partner Mahinder Singh. These three persons also agreed to admit a minor Harminder Singh to the benefits of the partnership. This partnership was evidenced by a deed29th Aug., 1972. Fresh accounts were maintained by this new partnership from 18th Aug., 1973, 31st April, 1973 even though such accounts were maintained in the same set of books which were opened by the view that the death of partner Mahinder Singh and the induction of his wife into the partnership and the admission of minor Harminder Singh to the benefits of the partnership by the deed dt.29th Au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le or existing partners that in the event of such contingencies, the firm shall not stand dissolved. In his view, the induction of the widow of Mahinder Singh as a partner in the firm showed that there was an implied contract for the continuation of the firm with the legal heirs of a deceased partner, in the event of death of any partner. According to him, the continuation of the accounts in the same books as those used by the old firm also indicated such an implied contract. In this view of the matter, he held that the ITO was justified in making a single assessment for the two periods. Aggrieved by this order, the assessee is in second appeal before the Tribunal. 4. We may at once point out that AAC was wrong in stating that there was a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se on the decisions of the Allahabad High Court in Dahi Laxmi Dal Factory vs. ITO (1) and CIT vs. Shiv Shanker Lal Ram Nath (2) and also on the decision of Delhi High Court in CIT vs. Arvind Construction Co. On behalf of the Department, reference has been invited to the decision of the Mysore High Court in Karupukula Suryanarayana Shetty and Sons vs. CIT (4), of the Punjab Haryanan High Court in Dharam Pal Sat Dev vs. CIT of the Andhra Pradesh High Court in Vishaka Flour Mills (6) and of Madras High Court in Kaithari Lungi Stores vs. CIT (7). 7. We have carefully gone through the submissions made from both sides. On an appreciation of the facts of the case, we have come to the conclusion that there has been a dissolution of the old part ..... X X X X Extracts X X X X X X X X Extracts X X X X
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