1992 (11) TMI 27

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....ax Appellate Tribunal has referred the following question under section 256(1) of the Income-tax Act, 1961 (briefly, "the Act") "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the provisions of section 187 of the Income-tax Act, 1961, were not applicable and that there were two separate firms during the previous year liable to be assess....

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....p deed dated January 13, 1970, a partnership was constituted by three partners, namely, Smt. Ram Kali Devi, Shri Dharmpal and Shri Chandrapal having 1/3 share each. Smt. Ram Kali Devi died on September 9, 1973, and Shri Dharampal retired from the partnership, with the result that Shri Chandrapal alone was left behind . The contention of the assessee was that, owing to the death of Smt. Ram Kali De....

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....hat there was only a change in the constitution of the firm after the death of Smt. Ram Kali Devi and that no new firm came into being on September 13, 1973. The assessee then carried the dispute in further appeal to the Appellate Tribunal which rejected the view taken by the Income-tax Officer. The Tribunal found that, after the death of Smt. Ram Kali Devi and retirement of Shri Dharampal, the....

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.... On these facts, the firm constituted, under the deed dated January 13, 1970, therefore, stood dissolved automatically on September 9, 1973. A Full Bench of this court on almost similar facts in Dahi Laxmi Dal Factory v. ITO [1976] 103 ITR 517 held that after the death of a partner only one partner was left and since one man cannot constitute the firm, the firm automatically came to an end. In ....