Joint and several liability for partners ensures firm tax, interest and penalty remain payable despite discontinuance or reconstitution. When a taxable person that is a firm, association of persons or HUF discontinues, tax, interest and penalty up to discontinuance may be determined as if no discontinuance occurred, and every partner, member or family person is jointly and severally liable for those amounts whether determined before or after discontinuance. On reconstitution, partners/members before and after remain jointly and severally liable for liabilities attributable to periods before reconstitution. The same principles apply on firm dissolution or HUF partition; LLPs are treated as firms.
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 for partners ensures firm tax, interest and penalty remain payable despite discontinuance or reconstitution.
When a taxable person that is a firm, association of persons or HUF discontinues, tax, interest and penalty up to discontinuance may be determined as if no discontinuance occurred, and every partner, member or family person is jointly and severally liable for those amounts whether determined before or after discontinuance. On reconstitution, partners/members before and after remain jointly and severally liable for liabilities attributable to periods before reconstitution. The same principles apply on firm dissolution or HUF partition; LLPs are treated as firms.
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