- (1.) THIS is a reference under s. 256 of the IT Act, 1961 ('the Act'). 2. The following questions have been referred to this Court by the Tribunal : "1. Whether, on the facts and in the circumstances of the case, the provisions of S. 187 of the IT Act, 1961, were wrongly invoked?
(2.) WHETHER , on the facts and in the circumstances of the case, the learned Tribunal was legally correct in upholding the order of the CIT(A) directing the ITO to frame two assessments for the two periods?" The facts of the case are that the assessee-firm was constituted by four partners. In the relevant assessment year, one of the partners died on 1st Aug., 1976. The remaining three partners continued the partnership by taking three more persons as partners of the firm. The question is as to whether, in the facts and circumstances of the case, S. 187 of the Act is applicable or not. The question has been decided by the Supreme Court in CIT vs. Empire Estate (1996) 218 ITR 355 (SC), wherein it has been held that in case of death of a partner of the partnership firm, the change in the constitution of the firm did not fall under S. 187. In view of the above, we decide both the questions in the affirmative against the Department.;