TaxTMI 
TaxTMI 
1980 (3) TMI 111
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....ding 31st March, 1978 as the previous year. The assessee filed two returns on 31st July, 1978 one for the period from 1st April, 1977 to 2nd Aug., 1977 declaring income at Rs. 12,639 and the other for the period from 3rd Aug., 1977 to 31st March, 1978 declaring income at Rs. 7,300. According to assessee the firm stood dissolved on the death one of the partners on 2nd Aug., 1977 and, therefore, two assessments were required to be made. The ITO considered the claim of the assessee with reference to the partnership deed dt. 6th Jan., 1972 and relying upon cls. 13 and 14 of the said partnership deed, to which we shall refer later, came to the conclusion that there was no dissolution of the firm but only a change in the constitution of the firm ....
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....er desired to retire from the partnership firm, he could do so after giving one English calendar month's notice in writing to the remaining partners mentioning his intention to retire from the said firm and that after expiry of the period of such notice, he would be deemed to have been retired. According to cl. 14 of the partnership deed on death of any partner, his legal heirs shall be admitted in the said firm on such terms and conditions as the parties therein shall deem fit and proper. Therefore, according to the express agreement entered into between the partners, the death of a partner did not dissolve the firm and the firm was allowed to continue in view of the specific agreement. Therefore, contention raised on behalf of the assesse....
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....d which are relevant for our purposes. 'Cl. 13—That on the retirement of any partner, the partnership business shall not be dissolved but it will be carried and continued to be carried on by the remaining partners. 'Cl. 14—That on the death of any partner his legal heirs shall be admitted in the said firm on such terms and conditions as the parties herein shall deem fit and proper. It is true that according to the deed of partnership dt. 6th Jan., 1972 on death of any partner his legal heir was required to be admitted to the partnership. Now, when Shri Namjoshi, one of the partners died on 2nd Aug., 1977, in pursuance of c. 14 of the partnership deed Mrs. Nalini Namjoshi, should have been admitted to the said partnership firm. Howev....