Joint and several liability keeps partners responsible for firm tax, interest and penalty obligations despite discontinuance or reconstitution. Tax liability of firms, associations or Hindu Undivided Families survives discontinuance, dissolution or partition: taxes, interest and penalties up to the date of discontinuance may be determined as if discontinuance had not occurred, and every partner, member or coparcener at that time is jointly and severally liable for those liabilities. Change in firm constitution likewise leaves partners before and after reconstitution jointly and severally liable for prior-period liabilities. A Limited Liability Partnership is to be treated as a firm for these purposes.
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 keeps partners responsible for firm tax, interest and penalty obligations despite discontinuance or reconstitution.
Tax liability of firms, associations or Hindu Undivided Families survives discontinuance, dissolution or partition: taxes, interest and penalties up to the date of discontinuance may be determined as if discontinuance had not occurred, and every partner, member or coparcener at that time is jointly and severally liable for those liabilities. Change in firm constitution likewise leaves partners before and after reconstitution jointly and severally liable for prior-period liabilities. A Limited Liability Partnership is to be treated as a firm for these purposes.
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