22 October 2022
A partnership firm was constituted with two partners on 16.01.2016and one of them expired of a road accident on 27.11.2016 i.e. before completion of the financial year 2016-17 and therefore the firm stood dissolved automatically. . A notice u/s 148 was issued to the firm and the surviving partner did not respond to such notices as the registered email id was that of the deceased partner. An assessment has been made by the Assessing Officer u/s 144 and later on levied penalties u/s 271(1)(b), 271AAC and 271F.
After the death of a partner, the surviving partner did not inform the Assessing Officer of the dissolution of the firm. Whether he was duty bound to inform the fact of compulsory dissolution, u/s 176(3) within 15 days of such dissolution.
My query is " Can a notice be validly issued u/s 148 to a dissolved partnership firm "
The honourable Delhi High Court in the case of Mrs Sripathi Subbaraya Manohara L/H Late Sripathi Subbaraya Gupta versus PCIT, Delhi in writ petition no. WP(C) 2678/2020 & CM 9286/2020 has held that notice issued in the name of dead person is invalid.
Whether the above decision shall hold good in case of dissolved partnership firm as well. Please guide.
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