1981 (9) TMI 170

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....s-one for the period from 1st April, 1975 to 14th November, 1975, and the other for the period from 15th November, 1975 to 31st March, 1976. The assessee claimed that during the first period ending on 14th November, 1975 there were new partners Shri Maya Ram and Shri Poonam Chand Gupta were admitted as partners. The assessee claimed that two separate assessments should be made on the two firms for the two periods. 3. The ITO held that though there were two separate deeds of partnership dt. 2nd April, 1975 and 15th November, 1975, there was no deed of dissolution executed in respect of the previous firm consisting of the four partners on 15th November, 1975. The ITO relied on the decision of the Kerala High Court in CIT vs. Kelu Kutty (19....

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....sion of two more partners into the already existing firm of four partners. It was, therefore argued that the case of the assessee was squarely covered by the provisions of s. 187(2) of the Act and that the ITO was right in holding that it was a case of change in the constitution of the firm. 6. On behalf of the assessee, reliance was placed on the decision of the Gujarat High Court in (1977) 108 ITR 517 (Guj) in the case of CIT vs. Harjeevandas Bathibhai and on the decision of the Calcutta High Court in the case of Mathuradas Govardhandas vs. CIT, West Bengal IV (1980) 125 ITR 470 (Cal), It was pointed out that this decision had referred to all the decisions which are in favour of the assesee and also in favour of the Revenue. It was sub....

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....f the Allahabad High Court in 1978 CTR (All) 390 : (1978) 115 ITR 858 (All) Badri Narain Kashi Prasad vs. Addl. CIT). This Full Bench decision approved the decision of the same High Court in the case of C.I.T vs. Shiv Shankar Lal Ram Nath reported in (1977) 106 ITR 342 (All). In fact, a perusal of the decision in Shiv Shankar Lal's case would show that the facts of the said case were similar to the facts of the present case. The decision of the Calcutta High Court in the case of Mathuradas Govardhandas vs. CIT (1980) 125 ITR 470 (Cal) also supports the case of the assessee. In fact it follows the decisions of the Allahabad Gujarat and Andhra Pradesh High Court and dissents from the decisions of the Punjab and Haryana High Court and of the A....