Joint and several liability: partners remain liable for firm tax obligations even after discontinuance or reconstitution. Tax, interest and penalty of a discontinued firm, association or HUF may be determined as if no discontinuance occurred, and every partner, member or coparcener at the time of discontinuance is jointly and severally liable for those liabilities. Change in the constitution of a firm or association renders partners or members both before and after reconstitution jointly and severally liable for tax, interest and penalty due for periods before reconstitution. Dissolution and partition are treated as discontinuance. LLPs are regarded as firms for these purposes and 'court' is defined as District Court, High Court or Supreme Court.
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 liability: partners remain liable for firm tax obligations even after discontinuance or reconstitution.
Tax, interest and penalty of a discontinued firm, association or HUF may be determined as if no discontinuance occurred, and every partner, member or coparcener at the time of discontinuance is jointly and severally liable for those liabilities. Change in the constitution of a firm or association renders partners or members both before and after reconstitution jointly and severally liable for tax, interest and penalty due for periods before reconstitution. Dissolution and partition are treated as discontinuance. LLPs are regarded as firms for these purposes and "court" is defined as District Court, High Court or Supreme Court.
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