Dissolution of firm can still be verified by tax authority before assessment; mere intimation does not oust jurisdiction.

A mere intimation that a firm has been dissolved does not conclusively oust the assessing authority's jurisdiction. Where the statutory assessment procedure contemplates objections and supporting evidence, the authority may verify the fact of dissolution before completing assessment, and is not functus officio on receipt of the intimation alone. The burden remains on the party asserting dissolution to establish it by evidence. The Court treated earlier contrary authority as not barring such inquiry and relied on Supreme Court guidance that dissolution is a matter open to examination, including in writ proceedings. The reference was answered against the assessee.

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Issues: Whether, after receipt of intimation that a firm has been dissolved, the assessing authority is bound to accept the intimation without inquiry and is functus officio in the matter of assessment, or whether it may verify the factum of dissolution before proceeding with assessment.

Analysis: The statutory scheme required assessment to be made in the manner prescribed by the rules. The notice procedure contemplated objections by the dealer and evidence in support of those objections, and the assessing authority was to consider the objection and evidence before making assessment. The obligation to intimate dissolution under the Act did not compel the authority to accept the bare assertion as conclusive. The relevant rules and the general principle that a person asserting a fact must prove it supported the view that a dissolved-firm plea had to be established by evidence. Earlier authority to the contrary was treated as not laying down that inquiry into dissolution was barred. The Court also relied on Supreme Court authority indicating that the fact of dissolution is open to inquiry, including in proceedings under article 226, and therefore could certainly be examined by the assessing authority.

Conclusion: The assessing authority was not functus officio upon receipt of intimation of dissolution and could inquire into whether the firm had in fact been dissolved. The question referred was answered in the negative, against the assessee.

Final Conclusion: The order setting aside the remand was held to be incorrect, and the reference was answered against the contention that mere intimation of dissolution barred further inquiry by the sales tax authorities.

Ratio Decidendi: A mere intimation of dissolution of a firm does not conclusively oust the assessing authority's jurisdiction; where the statutory procedure requires objections and evidence, the fact of dissolution may be verified before assessment is finally made.

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