1951 (1) TMI 43

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.... at the commencement of the Indian Income-tax (Amendment) Act, 1939 (VII of 1939), carrying on any business, profession or vocation on which tax was at any time charged under the provisions of the Indian Income-tax Act, 1918, is succeeded in such capacity by another person, the change not being merely a change in the constitution of a partnership, no tax shall be payable by the first mentioned person in respect of the income, profits and gains of the period between the end of the previous year and the date of such succession, and such person may further claim that the income, profits and gains of the previous year shall be deemed to have been the income, profits and gains of the said period. Where any such claim is made, an assessment shall....

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....rovided that the retirement of any partner during the continuance of the partnership would not determine the partnership as between the remaining partners. It is not disputed that after the expiry of the term, the partnership continued to carry on business as before. The law is that where a partnership constituted for a fixed term continues to carry on business after the expiry of that term, the mutual rights and duties of the partners remain the same as they were before the expiry, so far as they may be consistent with the incidents of partnership at will. In 1947 the partnership was converted into a private limited company. For the assessment year 1047-48 the firm consisting of Squire, Hilman and Gilbert as partners claimed relief u....

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.... was never disputed that the business of the firm continued as tea brokers right from its inception till the time it was succeeded by the limited company, and the case was decided on the footing that it was the same firm all throughout though there was change in the personnel from time to time. It was never contended at any stage before that by reason of the change in personnel there was a change in the constitution of the firm. Before us Dr. S.K. Gupta who has appeared for the Income-tax Commissioner has taken a different line of argument. He says that there was change in the firm. It was not the same firm throughout. The change in the personnel necessarily effected a change in the constitution of the firm. This point was not taken befo....