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TMI Blog1951 (1) TMI 43X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax (Amendment) Act, 1939 (VII of 1939), carrying on any business, profession or vocation on which tax was at any time charged under the provisions of the Indian Income-tax Act, 1918, is succeeded in such capacity by another person, the change not being merely a change in the constitution of a partnership, no tax shall be payable by the first mentioned person in respect of the income, profits and gains of the period between the end of the previous year and the date of such succession, and such person may further claim that the income, profits and gains of the previous year shall be deemed to have been the income, profits and gains of the said period. Where any such claim is made, an assessment shall be made on the basis of the incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ituted for a fixed term continues to carry on business after the expiry of that term, the mutual rights and duties of the partners remain the same as they were before the expiry, so far as they may be consistent with the incidents of partnership at will. In 1947 the partnership was converted into a private limited company. For the assessment year 1047-48 the firm consisting of Squire, Hilman and Gilbert as partners claimed relief under Section 25(4) on the ground that the partnership had been succeeded by the private limited company. The Income-tax Officer disallowed the claim on the ground that the partners of the firm in 1939 being different from the partners of the firm in 1947, no relief could be given to the assessee. The Appellate As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as never contended at any stage before that by reason of the change in personnel there was a change in the constitution of the firm. Before us Dr. S.K. Gupta who has appeared for the Income-tax Commissioner has taken a different line of argument. He says that there was change in the firm. It was not the same firm throughout. The change in the personnel necessarily effected a change in the constitution of the firm. This point was not taken before the Tribunal, the Income-tax Officer or the Appellate Assistant Commissioner and this point could not have been taken in view of Section 25(4) which I have already set out. The firm was taxed under the Income-tax Act of 1918. There is no dispute as to this fact. If the firm is regarded as a differe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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