| Case ID |
376601a9-2237-4310-9339-92f7874f5430 |
| Body |
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| Case Number |
Income-tax Reference No.55 of 1981 |
| Decision Date |
May 23, 1990 |
| Hearing Date |
|
| Decision |
The Income-tax Appellate Tribunal was correct in law in holding that, after the death of one of the partners of the assessee-firm on September 4, 1973, there was a succession of one firm by another firm under section 188 of the Income Tax Act, 1961. Therefore, two assessments should be framed, one on each firm. Additionally, the Tribunal was justified in holding that the assessee was entitled to registration for the period of October 17, 1972 to September 4, 1973, i.e., up to the date of succession. The Court affirmed the findings of the Tribunal regarding the nature of succession and the entitlement to registration, thereby resolving the issues in favor of the assessee and against the Revenue. |
| Summary |
In this landmark case, the Allahabad High Court deliberated on critical issues pertaining to the Income Tax Act, 1961, specifically regarding the succession of firms following the death of a partner. The Court upheld the findings of the Income-tax Appellate Tribunal, which stated that two separate assessments must be conducted due to the succession of one firm by another. The decision emphasized the importance of accurately framing assessments in accordance with the law, particularly in situations involving changes in partnership structures. Furthermore, the case highlighted the rights of firms to claim registration during transitional periods and set a precedent for future cases regarding firm succession and registration under the Income Tax Act. The implications of this decision are significant for tax law and firm registrations, making it a crucial reference point for legal practitioners and tax professionals. |
| Court |
Allahabad High Court
|
| Entities Involved |
Not available
|
| Judges |
B.P. Jeevan Reddy, C.J.,
R.K. Gulati, J
|
| Lawyers |
Not available
|
| Petitioners |
COMMISSIONER OF Income Tax
|
| Respondents |
GANGA PRASAD PIAREY LAL
|
| Citations |
1992 SLD 136,
1992 PTD 870,
(1991) 187 ITR 126
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
188
|