Partnership dissolution on a partner's death required separate assessments where the deed lacked a continuance clause.

On the death of a partner, a firm dissolves unless the partnership deed provides for its continuance. As the registered deed here contained no such clause, the assessment could not proceed as one combined assessment for the whole year. The assessing authority was required to make two separate assessments for the distinct periods before and after the partner's death. The issue was answered in favour of the assessee, and the Revenue's contention that a single assessment was permissible failed.

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Issues: Whether, on the death of a partner, the firm stood dissolved so as to require two separate assessments for the two relevant periods in the absence of a clause in the partnership deed providing for continuation of the firm.

Analysis: The applicable legal position was that, on the death of a partner, a firm dissolves unless the partnership deed provides otherwise. The registered partnership deed in the present case contained no stipulation that the firm would continue after the death of a partner. In such circumstances, the assessment could not be made as a single combined assessment for the entire year, and the assessing authority was required to assess the two distinct periods separately.

Conclusion: The question was answered in the affirmative and against the Revenue. Two separate assessments were required.

Final Conclusion: The assessee succeeded on the reference, and the Revenue's challenge to the requirement of separate assessments failed.

Ratio Decidendi: In the absence of a partnership clause providing for continuance after the death of a partner, the firm dissolves on such death and separate assessments must be made for the distinct accounting periods.

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