19 August 2010
Taking over a part of the business will not amount to ‘succession’ - Where a firm running several lines of agency business stopped its business due to heavy losses, and a relative of one of the partners was appointed agent for one of the agencies under an independent agreement, there could not be any ‘succession’ within the meaning of section 170(1) so as to justify initiation of proceedings against that person under that provision - Premji Khimraj Shah v. ITO [1979] 118 ITR 216 (Guj.).
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