1986 (1) TMI 31

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....stances of the case, the Tribunal was right in holding that on the death of Shrimati Hari Bai (partner) on September 22, 1977, the firm stood dissolved and, therefore, two separate assessments for the two different periods should have been made ?" Chhaganlal, Ram Chandra, Kailashchandra, Sureshchandra and Smt. Hari Bai constituted a partnership under a deed dated July 12, 1972. Registration was granted to the firm in respect of the assessment year 1973-74 and this registration continued up to the assessment year 1977-78. One of the partners, Smt. Hari Bai, died on September 22, 1977. The firm stood automatically dissolved on her death. After the death of Smt. Hari Bai, the remaining four partners admitted two new partners and a new partn....

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....at under section 42, a firm will be automatically dissolved on the death of a partner unless the dissolution is saved by contrary agreement. Admittedly, there is no contrary agreement in the deed dated July 12, 1972, that the firm will be dissolved on the death of a partner. Thus, under section 42, the firm will stand dissolved on the death of Smt. Hari Bai. For these reasons, we agree with the conclusion of the Appellate Assistant Commissioner, that on the fact of the case, the Income-tax Officer should have made two assessments for the two different periods. The appeal is dismissed. " An application was made under section 256(1) of the Income-tax Act, 1961 (No. XLIII of 1961) (for short "the Act"), for referring three questions, which ....