INCOME TAX OFFICER v. GRYSTO INDIA
[Citation -1986-LL-0404-3]
| Citation | 1986-LL-0404-3 |
|---|---|
| Appellant Name | INCOME TAX OFFICER |
| Respondent Name | GRYSTO INDIA |
| Court | ITAT |
| Relevant Act | Income-tax |
| Date of Order | 04/04/1986 |
| Assessment Year | 1983-84 |
| Judgment | View Judgment |
| Keyword Tags | dissolution deed • partnership act |
| Bot Summary: | The assessee firm was carrying on business under a Deed of Partnership dt. Clause 10 of this Deed described the partnership as one at will. Thereafter a new Deed of Partnership was executed on 14th Jan., 1983 but with retrospective effect from 1st Oct., 1982 by the three remaining partner for carrying on the same business in partnership. For this assessment year, the ITO said one single assessment for the entire period 1st April, 1982 to 31st March, 1983 rejecting the assessee Firm's claim that it should be assessed only on the income for the period from 1st April, 1982 to 30th Sept., 1982 and that the income of the period 1st Oct., 1982 to 31st March, 1983 should be assessed in the hands of the new firm, which was formed under the Deed of 14th Jan., 1983. Since this case fell squarely within the language of s. 117 it had to be looked upon as a mere change in the constitution of the old firm and not as a case of succession whatever may be the provisions of the Partnership Act 1932. Counsel relied upon the case of Bal Kishan Dass Hari Kisan Das. In the above decision, the Delhi High Court referred to s. 42 of the Indian Partnership Act and has endorsed the view that in view of the position prevailing under the partnership law in terms of s. 42(c), the ITO in such cases cannot invoke s. 271 and it had to be held to be case of succession. |