https://www.taxtmi.com/caselaws?id=6640 The court resolved that proviso (ii) to section 187(1) of the Income-tax Act was applicable as the firm was reconstituted during the relevant assessment year. The inclusion of tax payable in respect of Hariprasad's share income was left for further determination. The court upheld the revenue's right to recover proportionate tax from the firm for Bajranglal's share income, regardless of the tax rate. It was held that an order determining the firm's liability was necessary before issuing demand notices under section 156. Consequently, the court quashed the demand notices and remanded the matter for proper determination of the firm's liability. en-us Fri, 21 Jan 1966 00:00:00 +0530 Sat, 31 Jan 2009 12:27:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6640 The court resolved that proviso (ii) to section 187(1) of the Income-tax Act was applicable as the firm was reconstituted during the relevant assessment year. The inclusion of tax payable in respect of Hariprasad's share income was left for further determination. The court upheld the revenue's right to recover proportionate tax from the firm for Bajranglal's share income, regardless of the tax rate. It was held that an order determining the firm's liability was necessary before issuing demand notices under section 156. Consequently, the court quashed the demand notices and remanded the matter for proper determination of the firm's liability. Case-Laws Income Tax Fri, 21 Jan 1966 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6640