India - Income Tax Act 2010 - Saarc

S. 171 I.T. ACT, 1961 1.722succeeded therein by any other person (hereinafter in this section referred to asthe successor) who continues to carry on that business or profession,—(a) the predecessor shall be assessed in respect of the income of theprevious year in which the succession took place up to the date ofsuccession;(b) the successor shall be assessed in respect of the income of theprevious year after the date of succession.(2) Notwithstanding anything contained in sub-section (1), when the predecessorcannot be found, the assessment of the income of the previous year in which thesuccession took place up to the date of succession and of the previous yearpreceding that year shall be made on the successor in like manner and to thesame extent as it would have been made on the predecessor, and all theprovisions of this Act shall, so far as may be, apply accordingly.(3) When any sum payable under this section in respect of the income of suchbusiness or profession for the previous year in which the succession took placeup to the date of succession or for the previous year preceding that year,assessed on the predecessor, cannot be recovered from him, the 67 [Assessing]Officer shall record a finding to that effect and the sum payable by thepredecessor shall thereafter be payable by and recoverable from the successor,and the successor shall be entitled to recover from the predecessor any sum sopaid.(4) Where any business or profession carried on by a Hindu undivided family issucceeded to, and simultaneously with the succession or after the successionthere has been a partition of the joint family property between the members orgroups of members, the tax due in respect of the income of the business orprofession succeeded to, up to the date of succession, shall be assessed andrecovered in the manner provided in section 171, but without prejudice to theprovisions of this section.Explanation.—For the purposes of this section, “income” includes any gainaccruing from the transfer, in any manner whatsoever, of the business orprofession as a result of the succession.G.—PartitionAssessment after partition of a Hindu undivided family.171. (1) A Hindu family hitherto assessed as undivided shall be deemed for thepurposes of this Act to continue to be a Hindu undivided family, exceptwhere and in so far as a finding of partition has been given under this section inrespect of the Hindu undivided family.(2) Where, at the time of making an assessment under section 143 or section 144,it is claimed by or on behalf of any member of a Hindu family assessed asundivided that a partition, whether total or partial, has taken place among the67. Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.1-4-1988.