Per S.Kannan, Account Member - This departmental appeal is directed against the order dt. 16-4-1985 of the C. I. T. (Appeals), relating to the assessment year 1981-82. - (1.)
(2.)The facts of the case are that the assessee firm is a dealer in grains. For the assessment year 1981-82, it filed two returns, one for the period from 21-10-1979 to 5-5-1980 and the other for the period from 6-5-1980 to 7-11-1980. The two returns came to be filed in the following circumstance :
Previously firm consisted of four partners. On 5-5-1980, one of the partners, Shri Nanjibhai Shah, died. A new partnership was constituted with effect from 6-5-1980 consisting of two out of the three remaining partners of the old firm, and four new partners. The I. T. O. took the line that the case was one of the change in the constitution of the firm and in this view of the matter made a single assessment clubbing together the income returned for the two periods.

(3.)ON his part, the C. I. T. (Appeals) directed the I. T. O. to make two separate assessments. In this regard, he was impelled by the retrospective amendment to section 187(2) made by the Taxation Laws (Amendment) Act, 1984 whereby a proviso is deemed to have been added right from 1-4-1975.