income tax
sharwan kumar mishra
(Querist) 21 January 2010
This query is : Resolved
sir
i am partner of our firm i want to close our partnership firm because partnership firm suffring in loss.please advice me what is procedure for dissolve.
A V Vishal
(Expert) 21 January 2010
The Partnership Act provides that a Partnership firm may be dissolved under the following circumstances namely (a) as a result of any agreement between all the partners (b) by adjudication of all the partners or all partners but one as insolvent, or (c) by the happening of an event which makes it unlawful for the business of the firm to be carried on in Partnership or (d) subject to agreement between the parties, on the happening of any of the following events such as (i) efflux of time, (ii) completion of the adventure, (iii) death of a partner, and (iv) insolvency of a partner. In these last four cases the Partnership agreement may provide events. Even if the deed provides that the Partnership will not be dissolved on the death or insolvency of a partner, it does not mean that on the death or insolvency of a partner he ceases to have interest in the Partnership property. In such cases his interest in the Partnership property will survive to his heirs in case of his death and to his assignees in case of insolvency. In the absence of a term in the deed of Partnership to that effect, it cannot be that, the Partnership shall continue, and notwithstanding the death of a partner it will operate to extinguish his proprietary rights in the assets of the Firm. A Partnership can also be dissolved by the Court under the circumstances mentioned in Section 44 of the Act. Where the Partnership is ‘at will’ the Partnership can be dissolved by any partner or partners giving notice his/their intention to dissolve the firm.
It is necessary to give a public notice at the time of dissolution. Otherwise the partners remain liable to third parties for their actions, even after the dissolution. However public notice is not necessary in case of:
a. Deceased partner
b. Insolvent partner
c. Partner who is not known to be a partner and who has retired.
Guest
(Expert) 21 January 2010
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Raj Kumar Makkad
(Expert) 21 January 2010
Vishal has described in detail all the relevant provisions concerning ur matter.
Kumar Thadhani
(Expert) 22 January 2010
Sir your query is not clear whether it is from partnership firm point of view or from taxation point of view if itis from partnership firm I do agree with experts Mr.vishal if is from taxation point of view file your incometax before the due date of filing return and claim and support your losses with evidences in your return in order to qualify for claim for losses remember no claim for lossess shall be entertained if your return is not filed before the due date.
