1989 (8) TMI 40

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....direction to be issued to the Tribunal to state the case and refer the following questions of law to this court : "(1) Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is correct in law in dismissing the Department's appeal against the Appellate Assistant Commissioner's order cancelling the direct assessment made on the firm under section 143(3) of t....

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....m which, then settled at a sum of Rs. 10,14,388, were received by the receiver of the dissolved firm. The amounts were received in two instalments: (1) in November, 1969, and (2) in December, 1971. The receiver disclosed this income for the year 1971-72 but the partner of the firm filed a nil return. These returns were filed pursuant to notices issued by the Income-tax Officer under section 139....

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....d amount can be taxed in view of the provisions of section 189(1) of the Act. Section 189(1) reads as under: "Where any business or profession carried on by a firm has been discontinued or where a firm is dissolved, the Income-tax Officer shall make an assessment of the total income of the firm as if no such discontinuance or dissolution had taken place, and all the provisions of this Act, incl....

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....s arisen after the dissolution of the firm. There was this lacuna in the Act which has since been rectified with the insertion of sub-section (3A) in section 176 of the Act. It is submitted that section 176(3A) should be given retrospective effect or should be regarded as clarificatory. The amendment is with effect from April 1, 1976, and the provision being substantive in character, the questi....