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TMI Blog1980 (4) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... k from pages 9 to 11. 3. A new partnership firm in the same name and style was constituted by partnership deed dt. 1st Jan., 1970 drawn on Rs. 100 Stamp paper. 4. The Applications in Form No. 11 and 11-A for asst. yr. 1971-72 together with true copy of Partnership Deed were forwarded under covering letter dt. 2nd Feb., 1970 and was received by the Department on 5th Feb., 1970. 5. The firm was registered with Registrar of Firms under No. B-62, 965 dt. 18th Feb., 1970. The new partnership firm has taken over the entire business of the old firm with all assets and liabilities. So, in this situation of the matter, Shri Mody, learned counsel for the assessee contends that the main question for determination of the Tribunal in this appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is no conflict between the Partnership Act and IT Act regarding this aspect. Hence, s. 187 of the Act does not apply to the situation, where the firm is dissolved by the operation of one or the other provision of s. 42 of the Partnership Act, and after dissolution one or more partners continue the same business as before by a fresh agreement with one or more new partners, observing as under: "Held (Per Divan, C.J. Sambasiva Rao, J. and Mrs. Amareswari, J.) that the very basis concept underlying s. 187 (1) is that one and the same firm must be continuing throughout the year under consideration. Even if there is a change in the constitution of the firm, the firm, as an entity, must continue as one and single throughout the period. When t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uation where the firm is dissolved by the operation of one or the other provisions s. 42 of the Partnership Act, and after dissolution one or more partners continue the same business as before by a fresh agreement with one or more new partners. There is no conflict between the Partnership Act and the IT Act regarding this aspect. Therefore, when a partner dies and the firm is dissolved, though it can be said that he ceases to be a partner, it cannot be said that there is a mere change in the constitution of the firm." However, the Full Bench of the Hon'ble Punjab and Haryana High Court has taken the contrary view in the case of Nandlal Sohanlal vs. CIT, Patiala 110 ITR 170 and Shri Singh relies upon it and thereby contends that the imp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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