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of <h1>Partnership firm tax assessment continues despite constitutional changes under Clause 327</h1> Clause 327 of the Income Tax Bill 2025 addresses tax assessment when partnership firms undergo constitutional changes, replacing Section 187 of the Income Tax Act 1961. The provision ensures assessment continuity by evaluating firms as constituted at assessment time, regardless of partner changes. Constitutional changes include partner cessation, admission of new partners (requiring at least one continuing partner), or altered profit-sharing ratios. The clause exempts firms dissolved upon a partner's death. While substantially similar to existing law, the new provision offers clearer language structure and updates assessment section references. This maintains administrative efficiency while preventing tax avoidance through technical firm reconstitution, ensuring revenue protection during partnership transitions.
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