Change in constitution of a firm requires assessment to be made on the firm as constituted at assessment time. Assessment of a partnership firm must be made on the firm as constituted at the time the assessment is made. A change in constitution occurs where partners cease to be partners, new partners are admitted provided at least one pre-existing partner continues, or where partners continue with a change in their respective shares. The cessation rule excludes dissolution on the death of a partner.
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.
Change in constitution of a firm requires assessment to be made on the firm as constituted at assessment time.
Assessment of a partnership firm must be made on the firm as constituted at the time the assessment is made. A change in constitution occurs where partners cease to be partners, new partners are admitted provided at least one pre-existing partner continues, or where partners continue with a change in their respective shares. The cessation rule excludes dissolution on the death of a partner.
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