Income Tax Act, 1961
Section 3: Ins. by Act 41 of 1975, s. 49 (w.e.f. 11976).
3. Ins. by Act 41 of 1975, s. 49 (w.e.f. 11976).
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(5) Where an assessment is to be made under the provisions of this section, the 1[Assessing Officer]
may serve on the person whose income is to be assessed or, in the case of a firm, on any person who was
a partner of such firm at the time of its discontinuance or, in the case of a company, on the principal
officer thereof, a notice containing all or any of the requirements which may be included in a notice
2[under clause (i) of sub-section (1) ofsection 142] and the provisions of this Act shall, so far as may be,
apply accordingly as if the notice were a notice issued 2[under clause (i) of sub-section (1) of
section 142].
(6) The tax chargeable under this section shall be in addition to the tax, if any, chargeable under any
other provision of this Act.
(7) Where the provisions of sub-section (1) are applicable, any notice issued by the 1[Assessing
Officer] under 3[clause (i) of sub-section (1) of section 142 or] section 148 in respect of any tax
chargeable under any other provisions of this Act may, notwithstanding anything contained in 3[clause (i)
of sub-section (1) of section 142 or] section 148, as the case may be, require the furnishing of the return
by the person to whom the aforesaid notices are issued within such period, not being less than seven days,
as the 1[Assessing Officer] may think proper.
177. Association dissolved or business discontinued.—(1) Where any business or profession carried
on by an association of persons has been discontinued or where an association of persons is dissolved, the
1[Assessing Officer] shall make an assessment of the total income of the association of persons as if no
such discontinuance or dissolution had taken place, and all the provisions of this Act, including the
provisions relating to the levy of a penalty or any other sum chargeable under any provision of this Act
shall apply, so far as may be, to such assessment.
(2) Without prejudice to the generality of the foregoing sub-section, if the 1[Assessing Officer] or the
4[*** Commissioner (Appeals)] in the course of any proceeding under this Act in respect of any such
association of persons as is referred to in that sub-section is satisfied that the association of persons was
guilty of any of the acts specified in Chapter XXI, he may impose or direct the imposition of a penalty in
accordance with the provisions of that Chapter.
(3) Every person who was at the time of such discontinuance or dissolution a member of the
association of persons, and the legal representative of any such person who is deceased, shall be jointly
and severally liable for the amount of tax, penalty or other sum payable, and all the provisions of this Act,
so far as may be, shall apply to any such assessment or imposition of penalty or other sum.
(4) Where such discontinuance or dissolution takes place after any proceedings in respect of an
assessment year have commenced, the proceedings may be continued against the persons referred to in
sub-section (3) from the stage at which the proceedings stood at the time of such discontinuance or
dissolution, and all the provisions of this Act shall, so far as may be, apply accordingly.
(5) Nothing in this section shall affect the provisions of sub-section (6) of section 159.
Where an assessment is to be made under the provisions of this section, the 1[Assessing Officer]
may serve on the person whose income is to be assessed or, in the case of a firm, on any person who was
a partner of such firm at the time of its discontinuance or, in the case of a company, on the principal
officer thereof, a notice containing all or any of the requirements which may be included in a notice
2[under clause
of sub-section
ofsection 142] and the provisions of this Act shall, so far as may be,
apply accordingly as if the notice were a notice issued 2[under clause
of sub-section
of
section 142].
The tax chargeable under this section shall be in addition to the tax, if any, chargeable under any
other provision of this Act.
Where the provisions of sub-section
are applicable, any notice issued by the 1[Assessing
Officer] under 3[clause
of sub-section
of section 142 or] section 148 in respect of any tax
chargeable under any other provisions of this Act may, notwithstanding anything contained in 3[clause
of sub-section
of section 142 or] section 148, as the case may be, require the furnishing of the return
by the person to whom the aforesaid notices are issued within such period, not being less than seven days,
as the 1[Assessing Officer] may think proper.
177. Association dissolved or business discontinued.—
Where any business or profession carried
on by an association of persons has been discontinued or where an association of persons is dissolved, the
1[Assessing Officer] shall make an assessment of the total income of the association of persons as if no
such discontinuance or dissolution had taken place, and all the provisions of this Act, including the
provisions relating to the levy of a penalty or any other sum chargeable under any provision of this Act
shall apply, so far as may be, to such assessment.
Without prejudice to the generality of the foregoing sub-section, if the 1[Assessing Officer] or the
4[*** Commissioner
Every person who was at the time of such discontinuance or dissolution a member of the
association of persons, and the legal representative of any such person who is deceased, shall be jointly
and severally liable for the amount of tax, penalty or other sum payable, and all the provisions of this Act,
so far as may be, shall apply to any such assessment or imposition of penalty or other sum.
Where such discontinuance or dissolution takes place after any proceedings in respect of an
assessment year have commenced, the proceedings may be continued against the persons referred to in
sub-section
from the stage at which the proceedings stood at the time of such discontinuance or
dissolution, and all the provisions of this Act shall, so far as may be, apply accordingly.
Nothing in this section shall affect the provisions of sub-section
of section 159.