Joint and several tax liability continues after discontinuance, reconstitution, dissolution or partition of a firm or family business. Liability for tax, interest and penalty continues where a taxable person is a firm, association of persons or Hindu Undivided Family and business is discontinued. The amounts payable up to discontinuance may be determined as though the business had not ceased, and every partner or member at the time of discontinuance remains jointly and severally liable. The same principle applies on reconstitution, dissolution or partition, and a Limited Liability Partnership is treated as a firm.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Joint and several tax liability continues after discontinuance, reconstitution, dissolution or partition of a firm or family business.
Liability for tax, interest and penalty continues where a taxable person is a firm, association of persons or Hindu Undivided Family and business is discontinued. The amounts payable up to discontinuance may be determined as though the business had not ceased, and every partner or member at the time of discontinuance remains jointly and severally liable. The same principle applies on reconstitution, dissolution or partition, and a Limited Liability Partnership is treated as a firm.
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