https://www.taxtmi.com/caselaws?id=5143 Penalty under the Indian Income-tax Act, 1922 was held to extend to a firm as reconstituted where the business continued after dissolution of the original firm. Section 44 applies only when the business of a firm is discontinued; where there is dissolution but continuation of business, the assessment scheme in sections 26(1) and 26(2) governs, and the reconstituted firm remains the relevant unit of assessment. Because penalty proceedings form part of assessment under Chapter IV, section 28(1)(c) could be invoked against the firm in existence at the relevant time. The objection that penalty was confined to the dissolved firm failed. en-us Wed, 12 Mar 1969 00:00:00 +0530 Thu, 20 Nov 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5143 Penalty under the Indian Income-tax Act, 1922 was held to extend to a firm as reconstituted where the business continued after dissolution of the original firm. Section 44 applies only when the business of a firm is discontinued; where there is dissolution but continuation of business, the assessment scheme in sections 26(1) and 26(2) governs, and the reconstituted firm remains the relevant unit of assessment. Because penalty proceedings form part of assessment under Chapter IV, section 28(1)(c) could be invoked against the firm in existence at the relevant time. The objection that penalty was confined to the dissolved firm failed. Case-Laws Income Tax Wed, 12 Mar 1969 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5143