1984 (10) TMI 14

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..... on 187 of the Income-tax Act, 1961. The assessee is a partnership firm. One of the partners died during the accounting year relevant to the assessment year under consideration. The assessee claimed that on the death of the partner, there is a dissolution of the partnership firm under section 42(c) of the Indian Partnership Act, inasmuch as the partnership deed executed between the partners did n .....

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..... sequently, one single assessment has to be made treating that there was merely a change in the constitution of the firm under section 187(2) of the Income-tax Act, 1961. When the matter was carried in appeal by the assessee, the Income-tax Appellate Tribunal allowed the assessee's contention that on the death of a partner, dissolution had taken place within the meaning of section 42(c) of the In .....

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..... the assessment year under consideration. That apart, we may refer to the amendment of section 187 by section 33 of the Taxation Laws (Amendment) Act, 1984. A proviso was newly inserted to sub-section (2) of section 187 to the following effect : " 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." The above pro .....

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