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DISSOLUTION OF FIRM - URGENT

Adv. S Sharma (Lawyer) (574 Points)

29 October 2007

HI FRIENDS

MY QUERRY : - Is dissolution of firm necessary at the time of succession of the firm ?

Please give any judgement etc. in favour of this, i'll gr8 to all of .u

Thx and Regards

Ajay Jain

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6 Replies

Suresh Goel (servuce) (335 Points)
Replied 29 October 2007

no it is not required under the partnership Act

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Late CA Sampat Jain (Chartered Accountant) (4772 Points)
Replied 29 October 2007

When you say succession of firm , you noramally mean entire assets and liabliies of the firm as a going concern has been taken over . IN this sense , a take over deed is sufficient and there is no need of dissolution of firm at that point of time . However , later on you may decide to dissolve ........ Other mode is dissolution of the firm and succession ...... IT depends

Adv. S Sharma (Lawyer) (574 Points)
Replied 29 October 2007

Thx Sampat Sir can u refer any judgement in respect of this querry ? thx and regards Ajay Jain

Adv. S Sharma (Lawyer) (574 Points)
Replied 29 October 2007

Kindly read judgement 2004(269)ITR322 ITS SAYING THERE IS AUTUMATIC DISSOLUTION OF THE FIRM AT THE TIME OF SUCCESSION

Adv. S Sharma (Lawyer) (574 Points)
Replied 29 October 2007

Thx Sampat & Suresh Sir
can u refer any judgement in respect of this querry ?
Kindly read judgement 2004(269)ITR322
ITS SAYING THERE IS AUTUMATIC DISSOLUTION OF THE FIRM AT THE TIME OF SUCCESSION

thx and regards
Ajay Jain

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Late CA Sampat Jain (Chartered Accountant) (4772 Points)
Replied 30 October 2007

You see there are two different things .......sucession of business of the firm as a going concern and succession of the firm itself . If the firm itself is succeeded , the old firm does not remain .