1990 (12) TMI 24

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....ection 256(2) of the Income-tax Act, 1961 (hereinafter to be referred to as "the Act"), for considering the following question of law : " Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in holding that the income for the two periods cannot be clubbed together and that separate assessments should be made for the two periods ?" The re....

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....r the second period. The Income-tax Officer, while making the assessment, granted continuance of registration till April 18, 1975, i.e., the date of death of the deceased partner and granted fresh registration to the newly constituted firm from April 21, 1975, as per the provisions of section 185 of the Act. Inspite of this fact, the Income-tax Officer clubbed the income of both the periods and as....

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....e of registration to this firm only till this date, i.e., till April 18, 1975. Further, the Income-tax Officer himself has granted fresh registration to the newly constituted firm which clearly implies that the two firms were treated as separate and independent legal entities for the purpose of the Income-tax Act. It is also of importance to note that there was an interregnum of two days between t....

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.... to be governed by it, notwithstanding anything different or to the contrary contained in the general law relating to the matter. It was further held that, in the case of change in the constitution of a firm during the accounting year, the income earned by the firm before such change was to be clubbed with the income earned after such change and a single assessment had to be made on the firm for t....