C.—Changes
in constitution, succession and dissolution29
Change in
constitution of a firm.
187. (1) Where at the time of making an assessment under section 143 or section 144
it is found that a change has occurred in the constitution of a firm, the
assessment shall be made on the firm as constituted at the time of making the
assessment.
30[***]
(2) For the
purposes of this section, there is a change in the constitution of the firm—
(a) if one or more of the partners cease to be partners31 or one or more new partners are admitted, in
such circumstances that one or more of the persons who were partners of the
firm before the change continue as partner or partners after the change ; or31
(b) where all the partners continue with a change in their respective
shares or in the shares of some of them :
32[Provided that nothing contained in clause (a) shall apply
to a case where the firm is dissolved on the death of any of its partners.]