2002 (1) TMI 950

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....artnership firm known as "M/s. United Enterprises" which was formed vide Deed of Partnership dated 1-10-1981 by five partners. The firm had purchased a piece of land on 18-9-1982 at Panvel. On 8-8-1984, one of the partners died. As the partnership deed did not contain any provision about the existence of partnership firm on the death of any of the partners, the firm stood dissolved on the death of a partner. By a deed of conveyance dated 1-4-1987, the erstwhile partners and legal heirs of the deceased partner of M/s. United Enterprises sold the said plot of land in their capacity as co-owners of the said plot of land. The profit on the sale of the land was disclosed by the co-owners as capital gain in their individual returns and was assess....

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....ains. The plot of land was sold as it is without any development. Therefore, there was no presumption of forming of any AOP or BOI by the erstwhile partners. He also submitted that the notice under section 148 was issued on M/s. United Enterprises, the partnership firm, and, therefore, the completion of assessment in the hands of M/s. United Enterprises as Body of Individuals is bad in law and without any jurisdiction. In support of this contention, he relied upon the decision of Hon'ble jurisdictional High Court in the case of CIT v. Associated Cement & Steel Agencies [1984] 147 ITR 776 (Bom.).        3. The ld. DR. heavily relied upon the order of CIT(A). He stated that at page 5, para-4, the CIT(A) h....