PARTNERSHIP

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 August 2010 I had formed a partnership firm with my friend who expired last month. Can I now enter into partnership with the heirs of my deceased partner?

CA Sanat Pyne

CA Sanat Pyne (Expert)
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15 August 2010 Where there were two partners, after the death of one, the firm will automatically come to an end. However, surviving partner may enter into partnership with the heirs of the deceased in which case that will be a new partnership firm.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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15 August 2010 Yes . There is an unavoidable inference of automatic dissolution.
Citation :- CIT Vs. Seth Govindram Sugar Mills (1965) 57 ITR 510 (SC).

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