TaxTMI 
TaxTMI 
1984 (5) TMI 22
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....year 1972-73 is concerned with what is to occur when an assessee partnership firm which is registered is dissolved and, consequently, a new firm takes over the business. The question referred to us is as follows : "Whether, on the facts and in the circumstances of the case, the Tribunal was legally right in holding that it was not a case of a change in constitution under the proviso to section 18....
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....nothing in the partnership deed which prevented the operation of the Partnership Act to dissolve the firm. Consequently, the firm would stand dissolved on May 15, 1971, under s. 42 of the Partnership Act. On May 17, 1971, a new partnership firm between the remaining four partners of the original firm and the son of Shri Dwarka Dass, Shri Mohan Lal was formed. Shri Mohan Lal was given the same shar....
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....s for subsequent years, but there is a proviso to this sub-section which excludes its operation when there is a change in the constitution of the firm. Reference 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....
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....when the firm dissolves by operation of law. In the case of (a), i.e., reconstitution, the firm remains alive but there is a change therein, and it appears that in law there should be two assessments on the two firms. But, s. 188 seems to visualise that a single assessment has to be made. Whether the income is to be clubbed or this is done for convenience, we refuse to answer in this case because ....