COMMISSIONER OF INCOME TAX Vs. JIVAN RAM MANGATRAI

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Jaipur Bench, Jaipur ("the Tribunal" herein), has referred the following question for the decision of this court, which is said to arise out of its order dated May 31, 1979, passed in ITA No. 1180/JP/1977-78 :

(2.) THE assessment year with which we are concerned is 1975-76. THE previous year for this assessment year ended on March 31, 1975. On August 11, 1974, one of the partners, Shri Mangatrai Goyal, expired. THE remaining partners took into partnership Smt. Liladevi, widow of the deceased, Mangatrai Goyal, as a new partner. THE now partnership constituted under the instrument of partnership dated August 31, 1974, took over the assets and liabilities of the business with effect from August 13, 1974. THE assessee-firm filed two returns of income : (1) for the period up to August 11, 1974; and (2) for the period from August 13, 1974, to March 31, 1975. THE Income-tax Officer opined that there was a mere change in the constitution of the firm and he, therefore, made one assessment for the entire period up to March 31, 1975, by his order dated November 27, 1975. THE Income-tax Officer, in his order dated November 27, 1975, held that there was no dissolution of the firm at the time of death of Mangatrai Goyal and that this was only a case of change in the constitution of the firm. He, therefore, assessed the firm accordingly. He also granted registration to the firm to be operative during the assessment year 1975-76. THE assessee went in appeal. THE Appellate Assistant Commissioner, by his order dated December 30, 1977, dismissed the appeal relying on his previous order. A further appeal was filed before the Tribunal. THE Tribunal allowed the appeal observing as under :

(3.) AS nobody has appeared on behalf of the assessee, there will be no order as to costs of this reference.