2003 (2) TMI 51

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..... ax Act, if even one of the partners continues to remain in the firm then the firm will not be deemed to be dissolved. Hence, even if the partnership deed says that the firm will stand dissolved on the retirement of a partner, for the purposes of the Income-tax Act, it will not be deemed to be dissolved in view of section 187(2)(a) of the Act. For the reasons given above we decide the question refe .....

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..... ssessment year, in the present case is 1979-80. There were 19 partners in the said firm and one of them Sri Sunder Lal retired. Under the partnership deed the partnership would stand dissolved on the death or retirement of a partner. Hence, the assessee filed two returns, one for the period April 1, 1978, to July 29, 1978, and the other for the period September 21, 1978, to March 31, 1979, allegin .....

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..... r or partners after the change ; or (b) where all the partners continue with a change in their respective shares or in the shares of some of them: Provided that nothing contained in clause (a) shall apply to a case where the firm is dissolved on the death of any of its partners." A perusal of section 187(2)(a) of the Income-tax Act shows that by legal fiction for the purposes of the Income- .....

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