India - Income Tax Act 2010 - Saarc

1.735 CH. XVI - SPECIAL PROVISIONS - CHANGES IN CONSTITUTION, ETC. S. 18930[***](2) For the purposes of this section, there is a change in the constitution of thefirm—(a) if one or more of the partners cease to be partners 31 or one or morenew partners are admitted, in such circumstances that one or moreof the persons who were partners of the firm before the changecontinue as partner or partners after the change ; or 31(b) where all the partners continue with a change in their respectiveshares or in the shares of some of them :32[Provided that nothing contained in clause (a) shall apply to a case where thefirm is dissolved on the death of any of its partners.]Succession of one firm by another firm.188. Where a firm carrying on a business or profession is succeeded by anotherfirm, and the case is not one covered by section 187, separate assessmentsshall be made on the predecessor firm and the successor firm in accordance withthe provisions of section 170.33[Joint and several liability of partners for tax payable by firm.188A. Every person who was, during the previous year, a partner of a firm, andthe legal representative of any such person who is deceased, shall bejointly and severally liable along with the firm for the amount of tax, penalty orother sum payable by the firm for the assessment year to which such previousyear is relevant, and all the provisions of this Act, so far as may be, shall apply tothe assessment of such tax or imposition or levy of such penalty or other sum.]Firm dissolved or business discontinued.189. (1) Where any business or profession carried on by a firm has beendiscontinued or where a firm is dissolved, the 34 [Assessing] Officer shallmake an assessment of the total income of the firm as if no such discontinuanceor dissolution had taken place, and all the provisions of this Act, includingthe provisions relating to the levy of a penalty or any other sum chargeableunder any provision of this Act, shall apply, so far as may be, to such assessment.(2) Without prejudice to the generality of the foregoing sub-section, if the35[Assessing] Officer or the 36 [***] 37 [Commissioner (Appeals)] in the course of any30. Omitted by the Finance Act, 1992, w.e.f. 1-4-1993. Prior to omission, the proviso wasomitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989 and laterreintroduced by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.31. For the meaning of the terms/expressions “cease to be partners” and “or”, see Taxmann’sDirect Taxes Manual, Vol. 3.32. Inserted by the Taxation Laws (Amendment) Act, 1984, w.r.e.f. 1-4-1975.33. Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.34. Substituted for “Income-tax”, ibid., w.e.f. 1-4-1988.35. Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.1-4-1988.36. Words “Deputy Commissioner (Appeals) or the” omitted by the Finance (No. 2) Act, 1998,w.e.f. 1-10-1998. Earlier “Deputy Commissioner (Appeals)” was substituted for “AppellateAssistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.37. Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.