1990 (11) TMI 104

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....Y C. J. -The Income-tax Appellate Tribunal has referred the following question under section 256(1) of the Income-tax Act, 1961. "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in upholding the order of the Appellate Assistant Commissioner directing the completion of three assessments for the three periods instead of a single assessment in th....

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.... to August 7, 1971, and the third for the period August 11, 1971 to March 31, 1972. The Incometax Officer, however, was of the opinion that there ought to be a single assessment, since it is a case of mere reconstitution of the firm on both the occasions. On appeal, however, the Appellate Assistant Commissioner accepted the petitioner's contention and held that it was a case of succession by ne....

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....the question on the basis of the material available from the orders of the three authorities under the Act. We shall first deal with what happened on May 5, 1971. As stated above, on this date, two of the five partners retired and a fresh deed of partnership was executed on the next day taking in a new partner. There is no material before us to show that the partnership was dissolved on May 5, 197....

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....any of its partners." A reading of this sub-section shows that where one or more partners continue and one or more new partners are admitted, it would be a case of reconstitution. We must reiterate that, in the absence of any other material, we must hold that it is merely a case of reconstitution. Now, we come to what happened on August 7, 1971. On this day, one of the partners died. Since t....