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<h1>Firm dissolution liability: partners remain jointly and severally liable for tax and penalties and assessments continue.</h1> Where a firm's business is discontinued or the firm is dissolved, the Assessing Officer shall assess the firm's total income as if no discontinuance or dissolution had occurred and all provisions of the Income-tax Act, including those for penalties, shall apply; partners at the time and their legal representatives are jointly and severally liable for tax, penalties or other sums payable, and any assessment-year proceedings begun may be continued against them from the stage at which they stood at discontinuance or dissolution.