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TMI Blog1992 (3) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal has recited the facts as given by the Commissioner of Income-tax (Appeals) which are as follows : "For the year under consideration, two returns were filed by the assessee-firm, one for the period ending February 6, 1971, and the second for the period ending October 19, 1971. Admittedly, the assessee-firm, for the first period, was constituted under a partnership deed dated November 7, 1970. There were eight major partners having diverse interests in the profits and losses of the firm. Four minors stood admitted to the benefits of that partnership. The said partnership deed contained a clause that, in the event of the death of any partner, the firm shall then be deemed to have been dissolved and it shall be mutually decided amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessed separately for those two periods, the present case being a case of succession under section 188 of the Act. This was not acceptable to the Income-tax Officer. According to him, for the reasons stated below, the present case was a case of continuation and succession of the firm : "According to section 187(1) where, at the time of making an assessment under section 143 or section 144, it is found that a change has occurred in the constitution of a firm, the assessment shall be made on the firm as constituted at the time of making the assessment. Further, change in constitution has been defined in clause (a) of sub-section (2) of section 187, according to which, if one or more of the partners cease to be partners or one or more new ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e has been made to this court. The point in issue, viz., whether this is a case of a succession or case to which the provisions of section 187 of the Act are applicable is no longer res integra. In somewhat similar facts, a Division Bench of this court in the case of CIT v. Sant Lal Arvind Kumar [1982] 136 ITR 379 came to the conclusion that, with the death of the partner, the firm stood dissolved and thereafter a new firm came into existence. In the present case also, the provision in the partnership deed was that on the death of a partner, the firm would stand dissolved. Furthermore, a fresh partnership deed was executed on February 8, 1971, which clearly shows that new firm had come into existence and it is not a case of continuation o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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