COMMISSIONER OF INCOME TAX Vs. BOMBAY BHUSHAN PRESS

JUDGEMENT

(1.) AT the instance of the Revenue the Tribunal, Delhi Bench 'EMC' Delhi referred the following questions for the opinion of this Court:

(2.) SO far as questions no. 1 and 2 are concerned, they revolve around one and the same controversy and, therefore, we take up these two questions together. The question for consideration is whether on the facts and in the circumstances of the case, one assessment was required to be made or two for two different periods. The facts are that the assessee firm was constituted by partners, namely, Sarvasri Suraj Bhan, Jagdish Prasad, Hari Babu and Ram Prasad. Sri Suraj Bhan expired on 30th Nov., 1977 and then Smt. Rukmani Devi wife of the deceased and Sri Arun Kumar were admitted as new partners of the firm. The assessing authority was of the view that there was a change in constitution of the firm in the middle of the year and, therefore, he made one assessment for the entire period. On appeal, the AAC was of the view that one of the partners having died it was the case of succession and not of change in constitution of the firm. He, therefore, held that two assessments should have been made for two different periods. On further appeal, the Tribunal concurred with the AAC.

(3.) COMING to the third question, it would be appropriate to reproduce the finding of the AAC.