AS A PARNER IN A FIRM ALL PARTNERS ARE JOINTLY AND SEVERALLY LIABLE FOR ANY TAX LIABILITY OF FIRM AS ON DATE OF RETIREMENT
.ITO CAN RECOVER SUCH LIABILITY FROM ANY INDIVIDUAL PARTNER FAILING WHICH CAN BE RECOVERED FROM OTHER PARTNER . IF ENTIRE LIABILTY IS COLLECTED FROM ONE PARTNER THEN SUCH PARTNER CAN RECOVER EXCESS OF HIS SHARE OF TAX LIABILITY FROM OTHER PARTNERS.
YOU CAN BRING TO NOTICE OF ITO THAT YOU HAVE RETIRED AND CAN FIND OUT YOUR SHARE OF TAX LIABILTY. YOU CAN PAY YOUR SHARE OF LIABILITY AND IF BEFORE YOUR RETIREMENT YOUR SHARE OF LIABILITY IS ALREADY RETAINED BY THE FIRM THEN INFORM THE SAME TO THE ITO. IN SUCH CIRCUMSTANCES YOU CAN NOT BE PROSECUTED,
EVEN OTHERWISE ITO WILL NOT LIKE TO PROSECUTE A PARTNER IF HE CAN RECOVER DUES FORM OTHER PARTNER. ITO WILL FIRST PROSECUTE WORKING PARTNER AS HE IS WELL VERSED WITH ACTIVITY OF BUSINESS OF THE FIRM ALONG WITH OTHER PARTNER . IT MAY BE NOTED THAT IF YOU ARE NOT WORKING PARNER THAN ITO WILL NOT PROSECUTE YOU ALONE SINGULARLY .
IF ,THE ANCESTRL PROPERTY IS OF FIRM'S ASSET THEN ITO WILL FIRST RECOVER FIRMS DUES FROM SUCH ASSET . IF SUCH PROPERTY IS GIVEN TO ANY OTHER PARTNER BY WAY OF HIS SHARE FROM THE FIRM BY WAY OF ADJUSTMENT THEN SUCH ADJUSTMENT IS TRANSFER OF IMMOVABLE PROPERTY AND IS TAXABLE AS CAPITAL GAIN IN HANDS OF FIRM,
PARMAR V D [ADVOCATE]