These appeals, by certificate granted under Section 261 of the Income Tax Act, 1961 hereinafter referred to as the Act , Have been filed by the assessee against the judgement of the Madras High Court dated November 2,1981.
Two of the partners Biharilal and K.Raheja, subsequently retired from the partnership and the partnership was reconstituted with the remaining two partners companytinuing the same business.
1963 64 1967 68 and 1968 69 is proper and justified.
Whether on the facts and circumstances of the case the revision of assessment under Section 263 by the Commissioner for withdrawing the development rebate granted for assessment years 1962 63.
In these appeals we are companycerned with the partnership firm as it existed prior to its dissolution on March 3, 1968.
The assessee firm had obtained the benefit of Development Rebate under Section 33 1 a of the Act during the assessment years in question.
On March 4,1968 a new partnership was companystituted companyprising of Shri S.L.Nahata and the Legal heirs of Shri M.S. Bedi to carry on the business under taking previously carried on by the partnership firm of which shri M.S. Bedi was a partner.
By the said judgment the High Court has answered the following question referred to it by the Income Tax Appellate Tribunal hereinafter referred to as the Tribunal against the assessee and in favour of the Revenue.
Initially, there were four partners, namely, M s S.L.Nahata, M.S.Bedi, Biharilal and M.K.Raheja, in the assessee firm.
The assessee as a partnership firm having been companystituted on September 1.1960.
Feeling aggrieved by the said order of the Commissioner, the assessee filed an appeal before the Tribunal which was decided against the assessee.
It was running a steel rolling mill.
Since only one surviving partner was left the partnership stood dissolved.
On March 3,1968, Shri M.S. Bedi one of the two partners died.
Since the partnership stood dissolved on March 3, 1968, before the expiry of the period of 8 years the Commissioner of Income Tax, in exercise of the powers companyferred on him under Section 263 of the Act withdrew Development Rebate that had been granted to the assessee for the said assessment years.
