1984 (5) TMI 22

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....that it was not a case of a change in constitution under the proviso to section 187(2) of the Income-tax Act, 1961, and in directing that separate assessments be made on the two firms instead of one consolidated assessment? " As it happens, this question has been decided by a Bench decision of this court in CIT v. San Lal Arvind Kumar [1982] 136 ITR 379. It was there held that s. 187 of the I.T. Act, 1961, was not applicable to a case where firm was dissolved by law under the Partnership Act. We have had occasion to follow the said judgment in other cases. In the present case, both the learned counsel for the assessee as well as the Department have taken a fresh line regarding how ss. 187, 188 and 189 have to be applied to the facts of t....

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....is also made to sub-s. (8) of s. 184 which can conveniently be reproduced here. It reads : " (8) where any such change has taken place in the previous year, the firm shall apply for fresh registration for the assessment year concerned in accordance with the provisions of this section." It is, therefore, urged that even if a firm is reconstituted, which is previously a registered firm, it is, therefore, another registered firm. He submits that there is no power in the Act to assess two registered firms as if there was one registered firm. On the other hand, we are of the view that this question, though an interesting one, should not be adjudicated upon by us in this case for several reasons. In our view, ss. 187, 188 and 189 form a ....