Binding High Court precedent required separate assessments after a partner's death and firm reconstitution during the year.

On the death of a partner and alleged reconstitution of the firm during the previous year, the issue was whether income had to be assessed separately for the two periods or clubbed in one assessment. The Tribunal followed the Full Bench ruling in Badri Narayan Kashi Prasad, holding that it was bound by the law declared by the Allahabad High Court. A contrary view from another High Court could not displace that binding precedent. Separate assessments for the two periods were therefore directed to be made, and the Revenue's objection was rejected.

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Issues: Whether, on the death of a partner and the claimed reconstitution of the firm during the previous year, the income for the two periods was required to be assessed separately or clubbed in one assessment.

Analysis: The finding of the first appellate authority directing separate assessments was based on the Full Bench decision of the Allahabad High Court in Badri Narayan Kashi Prasad. The Tribunal held that it was bound by the law declared by the Allahabad High Court and that the contrary view relied upon by the Revenue from another High Court could not displace the binding jurisdictional precedent.

Conclusion: The direction to make separate assessments for the two periods was upheld and the Revenue's challenge was rejected.

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