2008 (3) TMI 246

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....her, on the facts and circumstances of the case, the Tribunal was right in holding that the assessment could not be made on the company incorporated purely to takeover the partnership's business, assets and liabilities, with the same partners as shareholders and directors for the years prior to its incorporation, when the partnership was in existence?" 3. The appeals relate to the assessment years 1990-91 to 1994-95. The assessee is a company incorporated on March 31, 1994, with the main object of acquiring business of running lorries, cranes, trucks and all kind of vehicles of general carriers and taking over the business of partnership carried on under the name and style of M/s. Western Agencies in the same name as a going concern with a....

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....Aggrieved by the order of the Tribunal, the present appeals are filed. 4. Heard the argument of learned counsel. 5. The relevant statutory provision in the Income-tax Act is section 189, which provides for assessment in respect of a firm dissolved or business discontinued, which reads as follows "189. (1) Where any business or profession carried on by a firm has been discontinued or where a firm is dissolved, the Assessing Officer shall make an assessment of the total income of the firm as if no such discontinuance or dissolution had taken place, and all the provisions of this Act, including the provisions relating to the levy of a penalty or any other sum chargeable under any provision of this Act, shall apply, so far as may be, to suc....