1998 PLP 2827 (PTD)
COMMISSIONER OF INCOME-TAX Versus BASANT CINEMA
| Citation | 1998 PLP 2827 (PTD) |
| Forum / Court | 222 I T R 396 |
| Bench Members | M. Katju and Dr. B.S. Chauhan, JJ |
| Parties | COMMISSIONER OF INCOME-TAX Versus BASANT CINEMA |
| Primary Law | Income-tax |
Q1: What are the key laws and sections cited in 1998 PLP 2827 (PTD)?
This judgment primarily cites: Income-tax as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 1998 PLP 2827 (PTD)?
The case was heard and decided by the 222 I T R 396 bench comprising: M. Katju and Dr. B.S. Chauhan, JJ.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 1998 PLP 2827 (PTD) (COMMISSIONER OF INCOME-TAX Versus BASANT CINEMA). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Headnotes / Summary
Death of partner- --Reconstitution of film
Whether two assessments to be made, one before reconstitution and another after reconstitution
Terms of the partnership deed not known
Matter remanded. One of the partners of the assessee-firm, died on September 17, 1973, and it was reconstituted with new partners. The question was whether one assessment or two assessments in the assessment year 1975-76 had to be made. Held, that it is settled law that on the death of a partner the firm stands dissolved unless there is a term in the partnership deed that the firm would not stand dissolved on the death of the partner. It could not be found from the orders of the authorities, whether any such term existed in the partnership deed.
Judgment & Decree
Death of partner- --Reconstitution of film
Whether two assessments to be made, one before reconstitution and another after reconstitution
Terms of the partnership deed not known
Matter remanded. One of the partners of the assessee-firm, died on September 17, 1973, and it was reconstituted with new partners. The question was whether one assessment or two assessments in the assessment year 1975-76 had to be made. Held, that it is settled law that on the death of a partner the firm stands dissolved unless there is a term in the partnership deed that the firm would not stand dissolved on the death of the partner. It could not be found from the orders of the authorities, whether any such term existed in the partnership deed. This is an income-tax reference application in which the following question has been referred for our opinion: "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in holding that there was a reconstitution of the firm, two assessments had to be made, one for the period prior to the reconstitution of the firm and another for the post reconstitution period?" The facts of the case are that on September 17, 1973, one of the partner of the assessee-firm died and it is alleged that thereafter the firm was reconstituted with new partners. The question is whether one assessment or two assessments in the assessment year 1975-76 could be made. It is settled law that on the death of a partner, the firm stands dissolved unless there is a term in the partnership deed that the firm would not stand dissolved on the death of the partner. From the orders of the authorities, we are not able to find out whether any such term in the partnership deed exists that the firm would not stand dissolved on the death of a partner. The partnership deed has also not been filed in this paper book. Hence, we remand the matter to the Tribunal to pass a fresh order after looking into the partnership deed prevailing prior to the death of the partner. If there was no such term in the partnership deed it follows that there was a dissolution of the firm on September 17, 1973, and hence, there have to be two assessments. In these circumstances, we .set aside the order of the Income-tax Tribunal, dated July 24, 1979, and remanded the matter to the Tribunal to pass a fresh order in the light of the observations made above. M.B.A./1554/FC Cases remanded.