9911796707
TMI Blog2001 (11) TMI 999X X X X Extracts X X X X X X X X Extracts X X X X ..... m April 1, 1996. The petitioner, an illiterate, who was released from the partnership on April 1, 1996 was informed that this fact was reported to the department also. However, when a best judgment notice for the assessment year 1998-99 was received, a reply was sent by the petitioner on June 24, 2000, informing the department that he ceased to be a partner from April 1, 1996. However, an order of assessment for 1998-99 was made on May 18, 2001 and the petitioner on June 12, 2001 received it. Again a reply was sent on July 9, 2001 reporting once again the termination of relationship as a partner from April 1, 1996 to the assessing authority. However, again a notice for the assessment year 1999-2000 dated July 19, 2001 was sent to the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dissolution shall send within thirty days of such dissolution a report of the dissolution to the registering authority and to the assessing authority if he is different from the registering authority and if the registered dealer has more than one place of business, also to the Commercial Tax Officer or the Deputy Commercial Tax Officer in whose area of jurisdiction the registered dealer has a place of business." 5.. On perusing the assessment files, it is seen that Thiru S. Venugopalan filed returns in the capacity of Managing Partner for the assessment years 1996-97 and 1997-98 and the assessments were made on that basis only. However, for the assessment years 1998-99 and 1999-2000, monthly returns have been filed only in the capacity of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on was sent to the assessing authority in terms of rule 42 of the Tamil Nadu General Sales Tax Rules, 1959 within 30 days from the date of dissolution of the partnership firm. Therefore, when an assessment was made on the dissolved partnership firm in the absence of any intimation as contemplated in rule 42 of the Tamil Nadu General Sales Tax Rules, 1959, the Madras High Court observed as follows: "8. There is no specific provision in the Act providing for deeming a dissolved firm to continue to exist even after the date of dissolution, in case the form required to be filed under rule 42 is not filed. 9. The limit of the power which the authorities can exercise under the statute is that which is spelt out in the substantive enactment. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment order passed for the year 1998-99 on May 18, 2001 by treating the business as partnership business and serving a copy of the order on the petitioner as a partner of the business so as to demand the taxes is not in order. Similarly, the notice dated July 19, 2001 issued for the assessment year 1999-2000 by treating the business as partnership business and serving a notice on the petitioner as a partner also is not proper. Therefore, the order dated May 18, 2001 as well as the notice dated July 19, 2001 is set aside and the matters are remanded back to the assessing authority for taking appropriate action to assess Thiru S. Venugopalan who did business for the assessment year 1998-99 and 1999-2000 as proprietor in accordance with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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