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TMI Blog1988 (2) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... November 6. 1972, to March 31, 1973 ? " The facts as stated in the statement of the case are that one of the partners of the assessee-firm, namely, Basant Behari, died on November 5, 1972. The dispute relates to the assessment year 1973-74, the accounting year for which was the financial year 1972-73. As the death occurred during the accounting year, the assessment year stood broken up into two parts-one from April 1, 1972, to November 5, 1972, and the other from November 6, 1972, to March 31, 1973. The assessee-firm, however, filed a single return for the entire assessment year. The Income-tax Officer, therefore, made only one assessment in regard to the entire income shown in the return. The assessee-firm appealed before the Appellate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v Shanker Lal's case [1977] 106 ITR 342 (All), accepted the assessee's claim that two separate assessments were required to be made though there was only a change in the constitution of the firm. The Tribunal was of the view that the fact that the assessee had shown the income of both the periods in a single return would not change the legal position that two separate assessments had to be made when there was a change in the constitution of the firm. The Tribunal, therefore, directed the Income-tax Officer to make two separate assessments for the two periods. It is, therefore, clear that the Tribunal's decision rests on Shiv Shanker Lal's case [1977] 106 ITR 342 (All). It is undisputed that a Full Bench of this court in Vishwanath Seth v. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Supreme Court in Wazid Ali Abid All v. CIT and Addl. CIT v. United Commercial Co. [1988] 169 ITR 761. Let us see whether the submission of Sri Mahajan is correct. In Wazid Ali Abid Ali's case [1988] 169 ITR 761, the assessee-firm was constituted under a deed of partnership dated March 17, 1959, with 17 partners. The said deed provided, inter alia, that the firm shall not be dissolved on the death of any partner, but shall be carried on with the remaining partners and that heir and representative of the deceased partner who resides in India on such terms and conditions to which they mutually agree. On June 4, 1964, one of the partners, Qamaruddin, died and his son, Fariduddin, joined the firm as a partner. A new deed of partnership eviden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, it was necessary that a fresh deed of partnership should have been executed as well as fresh application for registration filed. The Tribunal, however, accepted the alternative contention and observed that the conditions laid down in sub-section (7) of section 184 of the Act had been satisfied and that the assessee would be entitled to the benefit of registration up to June 4, 1964, that is to say, the first part of the previous year. In view of section 187(2) of the Act, it was obligatory according to the Tribunal for the Income-tax Officer to make only a single assessment on the assessee and to apportion the total income between the partners who were entitled to receive the profits according as they were entitled to share the profits, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of firms, the Supreme Court upheld the decision of the Tribunal given on the alternative contention that the assessee was entitled to the continued benefit of registration at least for the first part of the previous year during which there was a no change in the constitution. To oppose this view, the Revenue relied on Vishwanath Seth's case [1984] 146 ITR 249 (All) [FB] and thereupon the Supreme Court observed towards the end (at p. 777 of 169 ITR): " The Full Bench ruled that under the general law of partnership under the Indian Partnership Act as well as under section 187 of the Act in the case of reconstitution of a firm, it retains its identity and is assessable in respect of the entire previous year. In view, however, of the sche ..... X X X X Extracts X X X X X X X X Extracts X X X X
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