Cit Vs. Naveen Silk Stores

.....question involved in this reference was whether there should be two assessments or a single assessment in the relevant year. ordinarily when a partner dies the partnership stands automatically dissolved in view of section 42(c) of the partnership act and section 187(2) of the income tax act. however, if the partnership deed mentions that the partnership will continue even after death of a partner it will not stand dissolved. clause 5 of the parnership deed implies that even if a partner dies then at least till the end of the financial year the business will continue, and the heirs will step in the shoes of the partner. held: the partnership will not stand automatically dissolved on the death of the partner. therefore, in view of decision of the supreme court in cit v. empire estate (1996) 218 itr 355 (sc) there has to be a single assessment and not two assessments. income tax act, 1961 s.187 in the allahabad high court m. katju & umeshwar pandey, jj. - land acquisition act, 1894 [c.a. no. 1/1894]. section 4; [sushil harkauli, s.k. singh & krishna murari, jj] acquisition of land held, court cannot issue a writ of mandamus directing the state authorities to acquire a particular land. land acquisition is not purely ministerial act to be performed by executive no direction in nature of mandamus whether interim or final can be issued by court under article 226 necessarily to acquire particular land in public interest. land acquisition is not a purely ministerial act to be performed by the executive and therefore, no mandamus can be issued by the court in exercise of its power under article 226 of the constitution, whether suo motu or otherwise, whether in public interest litigation or otherwise directing acquisition of land under the provisions of land acquisition act, 1894. it would, however, be open to the court in exercise of that power to invite the attention of the executive to any public purpose and the need for land for meeting that public.....m. katju, j.this is an itr under section 256(1) of the income tax act, in which the following questions have been referred to us for our opinion :'1. whether, on the facts and in the circumstances of the case, the tribunal was legally correct in directing the income tax officer to make two separate assessments for the two periods ?2. whether, on the facts and in the circumstances of the case, the provisions of section 187(2) were not applicable to the facts of the instant case2. the assessee is a registered partnership firm and the relevant assessment year is 1976-77. during that financial year one of the partners chandra bhushan misra died on 12-1-1975 and the question involved in this reference is whether there should be two assessments or a single assessment in the relevant year. ordinarily when a partner dies the partnership stands automatically dissolved in view of section 42(c) of the partnership act and section 187(2) of the income tax act. however, if the partnership deed mentions that the partnership will continue even after death of a partner it will not stand dissolved.3. we have carefully perused the partnership deed.clause 5 of the partnership deed states :'that in case of death of any partner his heir or executor shall be entitled and enjoy the same rights and benefits in the partnership business till the end of that year.'4. in our opinion the above clause implies that even if a partner dies then at least till the end of the financial year the business will continue, and the heirs will step in the shoes of the partner. hence the partnership will not stand automatically dissolved on the death of the partner.5. hence in view of decision of the supreme court in cit v. empire estate : [1996]218itr355(sc) we are of the opinion that there has to be a single assessment and not two assessments. the reference is, answered in the negative, i.e., in the favour of the department and against the assessee.