1997 (2) TMI 86

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....following questions have been referred for the opinion of this court : " 1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding it is a case of constitution of a new firm and not a case of change in the constitution of the firm keeping in view the provisions of section 187(2) of the Income-tax Act, 1961 ? 2. Whether, on the facts and in the circu....

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.... that the business of paper carried on by the assessee-firm was the same as was carried on by the erstwhile firm and there was only a change in the constitution of the firm. The new assessee-firm adopted the accounting year ending on September 30, 1969. The Income-tax Officer, however, required the assessee to prepare a trading and profit and loss account up to March 31, 1970, and assessed the ass....

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....of the facts, held that the integrity of the old business was disrupted and the paper and stationery businesses came to be separately carried on by the two new firms. The Tribunal further held that the paper business was a newly set up business and the assessee could certainly adopt a new accounting year ending on September 30, 1969. Learned counsel for the Revenue concedes, in so far as questi....

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....l with reference to question No. 2. For more than one reason we are unable to accept the contention of Mr. Gupta. Firstly, the contention raised does not flow from either of the questions referred. Secondly, the finding of the Tribunal that the paper business was a newly set up business has not been challenged in the question referred for opinion. We may notice that the Tribunal has held that sinc....