1987 (7) TMI 71

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....1961, is at the instance of the Revenue for answering the following question of law, namely: " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that as soon as Shri Indramal, partner, died on November 5, 1976, the assessee-firm was automatically dissolved meaning thereby that it was a case of succession and not change in constitution and t....

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....ssessee's contention was accepted on appeal by the Appellate Assistant Commissioner. The Revenue's appeal to the Tribunal has filed. The Tribunal held that on the death of one of the partners of the firm, it stood dissolved by operation of law, according to section 42 of the Indian Partnership Act and, therefore, it was a case of succession governed by section 188 of the Act and not of a mere chan....

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....9, 1987. Obviously, in a case like the present where there is no dissolution of the firm on the death of any of its partners on account of a contract to the contrary in the partnership deed, the said proviso inserted in sub-section (2) of section 187 of the Act not being applicable, it is a case governed by section 187 since it is merely a case of a change in the constitution of the firm as contem....