TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Firm not dissolved for tax if partner continues: High Court decision on Income-tax Act</h1> The High Court of Allahabad held that a firm is not dissolved for tax purposes under section 187(2)(a) of the Income-tax Act if one partner continues in ... Dissolution of Firm - Whether the firm will be deemed to be dissolved in case of retirement of a partner in view of section 187(2)(a) of the Act? - A perusal of section 187(2)(a) of the Income-tax Act shows that by legal fiction for the purposes of the Income-tax Act, if even one of the partners continues to remain in the firm then the firm will not be deemed to be dissolved. Hence, even if the partnership deed says that the firm will stand dissolved on the retirement of a partner, for the purposes of the Income-tax Act, it will not be deemed to be dissolved in view of section 187(2)(a) of the Act. For the reasons given above we decide the question referred to us in negative and in favour of the Department and against the assessee. The High Court of Allahabad ruled that if even one partner continues in a firm, it is not deemed dissolved for tax purposes under section 187(2)(a) of the Income-tax Act. The Court decided in favor of the Department, upholding the order to assess the income of the periods separately.
TaxTMI 
TaxTMI 
