- (1.) THE present income -tax appeal filed under Section 260A of the Income -tax Act, 1961 (hereinafter referred to as 'the Act'), has been admitted, vide order dated January 24, 2008, on the following substantial questions of law: 1. Whether, in the facts and circumstances of the case, the Tribunal is legally justified in law in holding that two separate assessments be made for the separate periods ignoring the fact that this is a case covered under Section 187(1) of the Income -tax Act, 1961 (hereinafter referred to as 'the Act') inasmuch as this was not a case of dissolution of the firm but only a change in constitution of the firm and the reliance was placed by the Tribunal on the cases of Wazid Ali Abid Ali v. CIT : [1988]169ITR761(SC) and CIT v. Sant Lal Arvind Kumar : [1982]136ITR379(Delhi) have wrongly been interpreted rather these cases are in favour of the Revenue ?
(2.) WHETHER , in the facts and circumstances of the case, the Tribunal is legally justified in deleting the addition of Rs. 2,00,155 holding that the amount was paid by the earlier firm which stood dissolved and no addition can be made in the hands of a new firm and has ignored the fact that the provisions of Section 187(1) of the Act is applicable in this case ? Whether, in the facts and circumstances of the case, the Tribunal is legally justified in law in directing to allow depreciation for both the periods holding that this was the case of dissolution of firm and ignored the fact that the case is covered in Section 187(1) of the Act? 2. Briefly stated the facts giving rise to the present appeal are as follows: 3. The present appeal relates to the assessment year 1978 -79.
(3.) THE previous year ended on March 31, 1978. The respondent -assessee is a firm and was constituted with 13 partners, which was engaged in the manufacturing of M S Rounds. With effect from July 1, 1977, two partners, viz., Shri Subhash Chand and Smt. Kailashwati, retired and by mutual consent, the partnership was treated as dissolved.;