C. A. ABRAHAM, UPPOOTTIL, KOTTAYAM vs THE INCOME-TAX OFFICER, KOTTAYAM AND ANOTHER

The Supreme Court held that under Section 44 and Section 28(1)(c) of the Income Tax Act, 1922, a partner of a dissolved partnership can still be assessed for income tax and penalized for concealing income even after the firm's dissolution. The Court clarified that the analogy of dissolution of a Hindu joint family does not apply to partnerships. It was determined that the provisions of Chapter IV of the Act remain applicable even after the discontinuation of a firm's business, and the term 'assessment' encompasses both tax computation and penalty imposition.