YATINDRA SINGH,J. - (1.) THIS is a reference under S. 256(2) of the IT Act on the direction of this Court in which the following question has been referred to us for opinion : "Whether on the facts and in the circumstances of the case, the Tribunal was legally correct in upholding the order of the CIT(A) that two assessments should have been made and the income of Rs. 1,14,420 for the period 21st Sept., 1976 to 31st March, 1977, as deleted from the hands of the appellant-firm be assessed separately ?" The assessee in this case is a firm and the assessment year involved is 1977-78.
(2.) ONE of the partners Gulshan Kumar died on 18th Sept., 1976, and there is no mention in the Partnership deed that the partnership will continue after the death of any partner. In view of this and the decision given by the Supreme Court in CIT vs. Empire Estate (1996) 132 CTR (SC) 221 : (1996) 218 ITR 355 (SC) the partnership stood dissolved and as such there should be two assessments. In view of this we answer the question in the affirmative i.e. in favour of the assessee and against the Department.;