https://www.taxtmi.com/caselaws?id=276306 On dissolution of a partnership, where one partner continues the same business, the arrangement amounts to a succession of the business for income-tax purposes under Section 26(2) of the Indian Income-tax Act, 1922. A partnership firm is treated as a separate assessable entity from its partners, so the continuing partner is assessed in the new capacity of successor rather than as a mere co-owner. Section 44 applies only where the business has been discontinued and does not govern a case of continuous business carried on after dissolution. The assessment was therefore treated under Section 26(2), with the continuing partner liable on the ex-partner's share of profits. en-us Wed, 25 Sep 1940 00:00:00 +0530 Mon, 05 Nov 2018 18:30:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276306 On dissolution of a partnership, where one partner continues the same business, the arrangement amounts to a succession of the business for income-tax purposes under Section 26(2) of the Indian Income-tax Act, 1922. A partnership firm is treated as a separate assessable entity from its partners, so the continuing partner is assessed in the new capacity of successor rather than as a mere co-owner. Section 44 applies only where the business has been discontinued and does not govern a case of continuous business carried on after dissolution. The assessment was therefore treated under Section 26(2), with the continuing partner liable on the ex-partner's share of profits. Case-Laws Income Tax Wed, 25 Sep 1940 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276306