1985 (7) TMI 87

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....rence under section 256(1) of the Income-tax Act, 1961, is at the instance of the assessee, to answer the following questions of law, namely : " 1. Whether on the material on record there is justification in law to hold that by the death of one of the partners, there was only a change in the constitution of the firm ? 2. Whether, on the facts and in the circumstances of the case, only one as....

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....ange in the constitution but one of succession governed by section 188 of the Act and not section 187. The ITO rejected this contention on the round that the original partnership deed dated April 21, 1969, expressly provided that the firm shall continue and shall not stand dissolved in the event of death of any one of the partners. Accordingly, the ITO held that it was a case of only change in the....

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....effect from April 1, 1975, by which a proviso was added to sub-s. (2) of s. 187, laying down that " nothing contained in clause (a) of sub-s. (2) of s. 187 shall apply to a case where the firm is dissolved on the death of any of its partners ". The construction made of s. 187, Ls it stood prior to this amendment is, therefore, governed by the decision of a Full Bench of this court in Girdharilal v....