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<h1>Death of Partner Dissolves Firm: Income Tax Act Section 187(2) Applies</h1> The High Court of Rajasthan held that the death of a partner resulted in the dissolution of the firm, requiring separate assessments for different ... Business Expenditure The High Court of Rajasthan ruled that on the death of a partner, there was a dissolution of the firm, leading to two separate assessments for different periods. The Tribunal's decision was upheld, and the case was governed by the proviso in section 187(2) of the Income-tax Act, 1961. The reference was answered in favor of the assessee. (Case citation: 1988 (5) TMI 7 - RAJASTHAN High Court)
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