TaxTMI 
TaxTMI 
2003 (2) TMI 3
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....Act") are proper. The fact which is not in dispute is that there existed a partnership firm. One of the partners, namely, Shri Gulabchand Sethi, died on August 16, 1997, owing to which the partnership firm stood dissolved. Fresh partnership deed was drawn on August 20, 1997, in which it was mentioned that the old firm was dissolved due to the death of Shri Gulabchand and that there was no business from August 17, 1997 to August 19, 1997. The new firm started business from August 20, 1997 to March 31, 1998. According to the Income-tax Officer the accounts of the dissolved firm were not closed on the death of Shri Gulabchand Sethi and the actual profit has not been distributed amongst the partners for the period April 1, 1997 to August 16, ....
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.... from August 17, 1997 to August 19, 1997. This is clear from the partnership deed drawn on August 20, 1997. Under the circumstances, it was essential that two separate accounts should have been maintained for the two periods. It has been decided to treat the partnership firm as association of persons and to assess in that capacity. Thus, the Assessing Officer has taken a decision to assess the petitioner's firm as an association of persons as per order dated August 2, 1999. Aggrieved by the decision of the Assessing Officer, the petitioner filed an application under section 144A of the Act before the Additional Commissioner of Income-tax, Gwalior Bench, Gwalior, in which the Additional Commissioner has agreed with the order passed by the A....
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.... in place of the deceased. Thus, the computation of profit by estimate is not the proper method of computation of income. The firm is not validly constituted as the conditions of section 184 are not satisfied. The Assessing Officer rightly invoked the provision of section 185 and treated the firm as an association of persons. It is also contended that the directions issued under section 144A will be incorporated by the Assessing Officer in his assessment order to be passed under section 143(3) and the ultimate order is appealable under section 246 before the Commissioner of Income-tax (Appeals) and further appeal lies under section 253 before the Income-tax Appellate Tribunal. Thus, the writ petition is devoid of substance and deserves to b....
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....on 184 of the Act provides that a firm shall be assessed as a firm for the purpose of the Act if the partnership is evidenced by an instrument; and the individual shares of the partners are specified in that instrument. It has not been disputed by learned counsel for the respondents that these two eventualities exist. Sub-section (5) of section 184 of the Act contains a non obstante clause where in respect of any assessment year, there is on the part of a firm any such failure as is mentioned in section 144, the firm shall not be assessed as such for the said assessment year and thereupon the firm shall be assessed in the same manner as an association of persons, and all the provisions of the Act shall apply accordingly. Section 144 of the....
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....whether the defect of failure to maintain the account and to close the account on the date of dissolution is such which cannot be allowed to be rectified within the purview of sub-section (9) of section 139 of the Act. Sub-section (9) of section 139 of the Act provides that where the Assessing Officer considers that the return of income furnished by the assessee is defective, he may intimate the defect to the assessee and give him an opportunity to rectify the defect within a period of fifteen days from the date of such intimation or within such further period which, on an application made in this behalf, the Assessing Officer may, in his discretion, allow; and if the defect is not rectified within the said period of fifteen days or as the ....