1977 (5) TMI 31

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ahinder Singh died on17th Aug., 1972. The assessee closed its books of account as on that date. With effect from 18th Aug., 1972 a new partnership was formed amongst the two surviving partners Surjit Singh and Kuljit Kaur and Smt. Parkash Kaur, wife of the deceased partner Mahinder Singh. These three persons also agreed to admit a minor Harminder Singh to the benefits of the partnership. This partnership was evidenced by a deed29th Aug., 1972. Fresh accounts were maintained by this new partnership from 18th Aug., 1973, 31st April, 1973 even though such accounts were maintained in the same set of books which were opened by the view that the death of partner Mahinder Singh and the induction of his wife into the partnership and the admission o....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ion of law, there could still be an implied or express contract amongst the erstwhile or existing partners that in the event of such contingencies, the firm shall not stand dissolved. In his view, the induction of the widow of Mahinder Singh as a partner in the firm showed that there was an implied contract for the continuation of the firm with the legal heirs of a deceased partner, in the event of death of any partner. According to him, the continuation of the accounts in the same books as those used by the old firm also indicated such an implied contract. In this view of the matter, he held that the ITO was justified in making a single assessment for the two periods. Aggrieved by this order, the assessee is in second appeal before the Tri....