Suppose a partnership firm was formed during September 2010 with 2 partners "X" and "Y". On 31/3/11 "Y" retired from partnership firm. Then under such circumstances, compulsory dissolution of firm takes place since 1 person cannot form partnership firm. However, Mr. X continues business on the business of partnership firm (using firm's bank account and furnishing firm's PAN card in all documents) and generate profits. Then, after few months on 1/7/11, Mr. X opens a proprietorship concern of same name and continues business as usual (Funishing his own PAN No. in all documents as reqd. by proprietorship concern).
I request you people to kindly analyse that upon which person will the tax liability for transactions conducted during 1/4/11 to 31/6/11 shall fall. And for P.Y. 11-12 which returns are required to be filed by Mr. X?
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