Dissolved firm assessment barred before statutory authorisation, with prior dissolution finding treated as conclusive on the same facts.

A dissolved firm could not be assessed to tax for the relevant period before section 12-A of the Bengal Finance (Sales Tax) Act, 1941 authorised such assessment. The note treats the prior categorical finding that the firm stood dissolved from 23 July 1970 as governing the dispute, and states that the same factual basis justified acting on that finding for the later assessment controversy. Although separate assessment years were noted, the text says there was no purpose in remitting the matter for re-examination of an already ined dissolution issue, so the assessment for the year in question was not sustainable.

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Issues: Whether the firm stood dissolved with effect from 23 July 1970 and, if so, whether it could be assessed to tax for assessment year 1969-70 before insertion of section 12-A in the Bengal Finance (Sales Tax) Act, 1941.

Analysis: The finding recorded by the assessing authority in respect of the subsequent assessment years was that the firm stood dissolved from 23 July 1970, and that finding was treated as conclusive for the present controversy. The Court also proceeded on the basis that a dissolved firm could not be assessed to tax for the relevant period before the insertion of section 12-A in the Bengal Finance (Sales Tax) Act, 1941 with effect from 28 May 1972. The objection that each assessment year is separate was noted, but it was held that there was no purpose in remitting the matter for re-examination of an issue already categorically decided on the same factual foundation.

Conclusion: The firm was treated as dissolved from 23 July 1970, and the assessment for the year in question could not be sustained; the appeal was allowed in favour of the assessee.

Ratio Decidendi: A dissolved firm cannot be assessed to tax for a period prior to the statutory provision that authorises such assessment, and a prior categorical finding of dissolution may be acted upon where the same factual issue governs the assessment.

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