Please Help: Income Tax
Posted Date : 02-Sep-2011 , 01:14:55 pm | Posted By SHIV KHATRY
My client is in partnership with two other partners. Case is under scrutiny for A Y 2009-10. Now Business Closed and my client is now no more. Tax Liability is expected to 10 lacs rupeess. What will be effects on my clients's family. Weather whole tax can be recovered from my client although he is having 10 % partnership share because other partners are not in position to pay tax. Thanx
Category : Income Tax | Answers : 1 | Comments : 4 | Hits : 333
Answers
Answer By: Ashish Karundia
Dear Shiv, Section 25 of Indian Partnership Act, 1932 provides for joint and several liability of partners i.e. if a partner is unable to discharge his share of liability, then the same will be recovered from other partners. Further, Section 159 of Income Tax Act, 1961 read with Section 161 and Section 167 provides that the assessing officer shall have the same remedy against the property of the legal representative as he would have against the assessee. Therefore, in the light of the above , your clients family shall have to pay the same. I would request you to contact some eminent lawyer/tax consultants in order to look into the same. In case of any other help from my side, I would be happy to do so.
Comments
CA VIPIN GARG
02-Sep-2011 , 02:34:38 pmDear Mr. Shiv Khatry Ji, In the above case whole amount can be very well recovered from your clients family because for the liability all the partners are liable but as you other partners are not in a position to pay the tax then the whole shifts on your client and if is no more then the family of ur clients has to pay for that........ Hope that answers ur query. have a nice day .......
Ashish Karundia
02-Sep-2011 , 02:46:19 pmDear Shiv, Section 25 of Indian Partnership Act, 1932 provides for joint and several liability of partners i.e. if a partner is unable to discharge his share of liability, then the same will be recovered from other partners. Further, Section 159 of Income Tax Act, 1961 read with Section 161 and Section 167 provides that the assessing officer shall have the same remedy against the property of the legal representative as he would have against the assessee. Therefore, in the light of the above , your clients family shall have to pay the same. I would request you to contact some eminent lawyer/tax consultants in order to look into the same. In case of any other help from my side, I would be happy to do so.
srishty mittal
06-Sep-2011 , 07:50:43 pmyes, the tax can be recovered from the personal property of your client as the liability is unlimited in case of partnership.
srishty mittal
06-Sep-2011 , 07:51:11 pmyes, the tax can be recovered from the personal property of your client as the liability is unlimited in case of partnership.