COMMISSIONER OF INCOME TAX Vs. PAPER MART

JUDGEMENT

(1.) THE following two questions have been referred for consideration and consequent opinion :

(2.) ALTHOUGH a third question was framed, it has not been referred.

(3.) IT is in the light of the above factual peculiarities, that application of the provisions of Sections 187, 188 and 189 of the Income-tax Act, 1961, would require consideration. IT will have to be seen that these Sections 187, 188 and 189 dealt with three different situations. Whereas Section 187 deals with a case where the firm continues the same as before in the eye of law, but there is a change in the constitution either because of a partner going out or any partner coming in and so long as one of the partners is common. There is a process of continuation with the entry and exit of some of the partners, reasons may be manifold keeping some of the partners as a mark of the continuation process. .