9911796707
TMI Blog1979 (7) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... er the separate returns filed for the said periods, should not be completed separately in the assessment made on the assessee-firm for the assessment year 1969-70 ? " We may notice the admitted facts as disclosed from the statement of the case submitted by the Income-tax Appellate Tribunal, Hyderabad Bench. For the assessment year 1969-70, the respondent firm, M/s. Allada Kanthayya and others, bad filed two separate returns of income for the following two periods, viz., from April 1, 1968, to October 10, 1968, and from October 11, 1968, to March 31, 1969. The assessee claimed that the assessment should be made separately for the two periods on the ground that there was a dissolution of the original firm on October 10, 1968, that a new fir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal did not agree with the revenue that the income of the firm as constituted under the deed of the partnership dated April 1, 1969, comprising of four partners should be clubbed with that of the firm constituted under the deed of partnership dated October 11, 1968, which comprised of six partners and held that the ITO erred in clubbing together the income in respect of the periods from April 1, 1968, to October 10, 1968, and from October II, 1968, to March 31, 1969, with a direction to compute the tax separately for the aforesaid two periods of assessment. Hence this reference. Sri P. Rama Rao, learned standing counsel for the revenue, contended that the Tribunal, having held that there was no dissolution of the firm on October ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... error in law in thinking that tax has to be computed separately for the broken periods for the assessment year 1969-70. It is well settled that where, as in the present case, there is only a change in the constitution of the firm and there was neither dissolution of the original firm nor succession by the new firm, the only course that is open to the income-tax authorities is to make one single assessment for the entire period on the firm which was in existence at the time of the making of the assessment. It is not open to the income-tax authorities in such a case to compute tax separately for the two broken periods. Such a procedure would be illegal and contrary to the provisions of ss. 187 and 188 of the Act. The order of the Tribunal is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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