https://www.taxtmi.com/caselaws?id=49318 Partnership is founded on contract, so a firm of two partners dissolves on the death of one partner unless a valid arrangement shows otherwise; the deceased partner's heirs do not automatically become partners under the original deed or the Partnership Act. Section 31 presupposes an existing partnership and cannot by itself create a continuing firm after dissolution. On the tax facts, the evidence did not establish partnership with the widow or guardians immediately after death, but a later partnership could be inferred once an heir attained majority. For the relevant year, the business was therefore assessable as a firm, not an association of persons. en-us Fri, 26 Mar 1965 00:00:00 +0530 Wed, 14 Sep 2022 15:13:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49318 Partnership is founded on contract, so a firm of two partners dissolves on the death of one partner unless a valid arrangement shows otherwise; the deceased partner's heirs do not automatically become partners under the original deed or the Partnership Act. Section 31 presupposes an existing partnership and cannot by itself create a continuing firm after dissolution. On the tax facts, the evidence did not establish partnership with the widow or guardians immediately after death, but a later partnership could be inferred once an heir attained majority. For the relevant year, the business was therefore assessable as a firm, not an association of persons. Case-Laws Income Tax Fri, 26 Mar 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49318