1984 (11) TMI 133

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.... the IT Act setting aside the assessment made in the case of the assessee for the asst. yr. 1978-79 and directing the ITO to make a fresh assessment in the status of an unregistered firm. 2. The assessee was a partnership firm. The accounting period relevant to the asst. yr. 1978-79, was from 1st Aug., 1976 to 31st July, 1977. During the said previous year one of the partner died on 30th June, ....

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....s was not done, the firm should have been treated as an unregistered firm for the whole of the accounting year as a single assessment was to be made. He, therefore, set aside the assessment and directed the ITO as aforesaid. Feeling aggrieved, the assessee has come up in the present appeal. 3. We have heard the ld. counsel for the assessee and the ld. Departmental Representative. It was contend....

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....t be regarded as a mere continuation of the same firm. In the case before us, the change took place because of the death of one of the partners. Under s. 39 of the Partnership Act, a firm gets automatically dissolved on the death of a partner and, therefore by virtue of the amendment, referred to above, s. 187 became inapplicable to this case and two separate assessment were to be made in terms of....

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....fore us, a copy of the old partnership deed was produced before us. The deed shows that it was a partnership at will and there was no provision that the death of a partner the firm would not dissolve. The result, therefore, is that the provisions of the Partnership Act would apply and the firm automatically got dissolved on the death of a partner and the new firm reconstituted thereafter was a suc....