9911796707
TMI Blog1984 (1) TMI 135X X X X Extracts X X X X X X X X Extracts X X X X ..... irm in the beginning of the accounting period relevant to the assessment year. However, on 23rd Sept., 1980 one Sri P. Samudralu, one of the partners of the assessee firm died, The AAC in his impugned order records that he had seen the partnership deed relevant to the first period of the assessment year i.e., the partnership deed which governed the business of the firm from 1st April 1980 to 23rd Sep., 1980 and he did not find a clause to the effect that the death of a partner does not bring about the dissolution in the firm. After the death of Shri Samudralu, a fresh deed of partnership had been drawn up on 29th Oct., 1980 under which in the place of the deceased Samudralu, his wife Smt. P. Appayamma was admitted as a partner. Under the ne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctors which led the ITO to held that there was only a change in the constitution but not a complete dissolution are as follows: (i) There was no advance tax estimate filed by the assessee even though the income returned for the period 24th Sept., 1980 to 31st March 1981 was Rs. 44,563. (ii) In the statement of income for the first period credit was not taken for the work in progress. (iii) Bills for the work carried out during the first period have been received and accounted for during the second period. (iv) The agreement entered into with the main contractors M/s Meduri Rameswara Rao of Rajahmundry has not been renewed by the alleged new firm. (v) There was no compensation or gratuity paid to the employee of the old firm, if th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts should be made for the two periods and the income of one period should not be clubbed with the other. He, therefore, allowed the appeal. 4. Aggrieved by the impugned order, the Revenue now came up in second appeal before this Tribunal. We heard Sri B.P.R. Naik, ld. Departmental Representative and Sri M. J. Swamy ld. Advocate for the assessee. We are of the view that having regard to the terms of the partnership deed dt. 25th Oct., 1978, dissolution of the firm was brought about by the death of Sri P. Samidralu on 23rd Sept., 1980. The firm which carried on business from 24th Sept., 1980 to 31st March, 1981 under the terms of the partnership deed dt 29th Sept., 1980 is a separate entity and accounting to the terms of that deed, two new ..... X X X X Extracts X X X X X X X X Extracts X X X X
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