Successor liability ensures heirs, successors and former partners remain liable for tax, interest and penalty incurred before discontinuance. Section 114 imposes successor liability for tax, interest and penalty: legal representatives or successors who continue or inherit a deceased person's business, members after partition of an HUF or association, former partners on firm dissolution, and wards or beneficiaries on termination of guardianship or trust are liable for liabilities incurred up to the relevant event, whether determined before or after that event.