9911796707
TMI Blog1970 (3) TMI 128X X X X Extracts X X X X X X X X Extracts X X X X ..... di. On 28th June, 1961, there was a disruption of the joint status as evidenced by a registered partition deed. The business was allotted to Motilal. On 2nd March, 1963, Motilal was assessed for the quarter ending 30th June, 1959, under section 12(5) of the Orissa. Sales Tax Act. The assessment was made under section 19(3) which runs thus: "19. (3) If any business carried on by a firm, Hindu und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as may be, be applicable to him." 2.. The assessing authorities and the Tribunal held that the business of the Hindu undivided family had discontinued inasmuch as after partition the business which belonged to the joint family became the separate property of Motilal. In his hands, it no longer continued to be joint family business and as such he was liable to be assessed under section 19(3) in r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... siness allotted in a partition to the share of Motilal can be said to have been discontinued. Two views are possible. One is that so long as the integrity of the business has not been affected in any manner, it cannot be said to have been discontinued even though it has passed to a different hand by succession. The alternative view is that the moment the ownership changes, the business has discont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aning of the section and to be in line with similar decisions on the English Income Tax Acts. The same view has been taken in Commissioner of Income-tax v. K.H. Chambers, Madras(1). 4.. The position, therefore, is that if the integrity of the business continues in the hands of the successor, there is no discontinuance of business even if there be a change in the personnel or the owner of the bus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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