1985 (11) TMI 47

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....the Income-tax Officer to pass two separate assessment orders for the two periods ? 2. Whether, on the facts and in the circumstances of the case, and keeping in view the specific provisions in the Income-tax Act, the Appellate Tribunal was justified in relying on the provisions of the Partnership Act, particularly those of section 42(c), as against the express provisions of the Income-tax Act, 1961 ? " The assessee is a registered firm which was constituted initially under a partnership deed dated April 7, 1967, comprising of three partners. One of the partners, Magan Bhai Kheta, died on June 25, 1974, as a result of which a new partnership deed was drawn up and some more partners were taken in. For the relevant assessment year 1975-....

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.... view of the Commissioner of Income-tax (Appeals) has been affirmed by the Tribunal. Aggrieved by the view taken by the Tribunal, a reference was sought by the Revenue which has been made by the Tribunal for answering the aforesaid questions of law. The only question involved in this case is the effect of insertion of the proviso in sub-section (2) of section 187 retrospectively with effect from April 1, 1975, by the Taxation Laws (Amendment) Act, 1984, which is as under : " Provided that nothing contained in clause (a) shall apply to a case where the firm is dissolved on the death of any of its partners." Section 187(2) as it stood prior to this amendment was interpreted along with section 188 of the Act by a Full Bench of this....