9911796707
TMI Blog1986 (4) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... August 13, 1974, to March 31, 1975, and in thus allowing the assessee's appeal ? " The assessment year with which we are concerned is 1975-76. The previous year for this assessment year ended on March 31, 1975. On August 11, 1974, one of the partners, Shri Mangatrai Goyal, expired. The remaining partners took into partnership Smt. Liladevi, widow of the deceased, Mangatrai Goyal, as a new partner. The new partnership constituted under the instrument of partnership dated August 31, 1974, took over the assets and liabilities of the business with effect from August 13, 1974. The assessee-firm filed two returns of income : (1) for the period up to August 11, 1974; and (2) for the period from August 13, 1974, to March 31, 1975. The Income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee. The following facts were not in dispute before the. Tribunal and they are also not disputed by learned counsel for the Revenue before us. Mangatrai Goyal, one of the partners of the assessee-firm, died on August 11, 1974. The partners closed the books of account and divided the profit amongst the five partners on August 12, 1974. From August 13, 1974, the business was taken over by a new firm consisting of the four existing partners and Smt. Liladevi, widow of the deceased, Mangatrai Goyal. Smt. Liladevi was taken as a new partner in the partnership firm and this new partnership was made effective from August 13, 1974. This new firm started its own books of account with effect from August 13, 1974. Both the firms filed separate retu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, a somewhat similar view was taken in CIT v. Sukhlal Sohanlal [1985] 153 ITR 221 (Raj). On the basis of the reasons given therein and in view of the undisputed facts detailed hereinabove, we are of the considered opinion that the Tribunal was right when it held that separate assessments should be made in the case of the assessee-firm regarding the assessment year 1975-76 in respect of the periods April 1, 1974, to August 12, 1974, the date of the dissolution of the old firm after the death of one partner, Mangatrai Goyal, and August 13, 1974 (the date of the commencement of the new firm) to March 31, 1975. For the aforesaid reasons, we answer the question referred by the Tribunal in the affirmative, i.e., in favour of the assessee and a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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