Partnership dissolution on death of partner requires scrutiny of deed; assessment may split into pre- and post-dissolution periods.

Death of a partner was treated as potentially dissolving the firm unless the partnership deed contained a term preserving its continuance. The Court noted that the deed was not on record, so the legal effect of the partner's death could not be finally determined without examining that document. It stated that, absent such a clause, the firm would stand dissolved on death and the assessment for the relevant year would require two separate assessments, one for the pre-dissolution period and another for the post-dissolution period. The Tribunal's order was set aside and the matter remanded for fresh decision after considering the partnership deed.

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Issues: Whether the death of a partner resulted in dissolution of the firm and whether, upon the alleged reconstitution, one assessment or two separate assessments were required for the assessment year 1975-76.

Analysis: The partnership deed was not before the Court, and the record did not establish whether it contained a term that the firm would not stand dissolved on the death of a partner. The matter therefore required examination of the deed to determine the legal effect of the partner's death. The Court stated that, in the absence of such a term, the firm would stand dissolved on the death of a partner and two assessments would follow, one for the pre-dissolution period and another for the post-dissolution period.

Outcome: The order of the Tribunal was set aside and the matter was remanded for fresh decision after examining the partnership deed.

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