INCOME TAX OFFICER Vs. KALYAN DAS MADAN MOHAN

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Delhi Bench "C", Delhi, referred the following questions for the opinion of this court under Section 256(1) of the Income-tax Act, 1961 :

(2.) FROM the facts as stated in the statement of the case, it is clear that the Commissioner of Income-tax recorded a clear finding that the partnership deed dated July 28, 1974, did not contain any agreement to the contrary that in the event of death of a partner the firm shall not stand dissolved. In view of Section 42(c) of the Partnership Act, a firm will stand dissolved in the event of the death of a partner and, therefore, we see no legal infirmity in the view of the Appellate Tribunal that on the death of Smt. Bishan Devi (partner), the firm stood dissolved. In the case of dissolution, the Appellate Tribunal held that two assessments, one for the period anterior to the date of death and the other for the period posterior to the date of death will have to be made.