COMMISSIONER OF INCOME-TAX, BANGALORE vs M/s. R. HANUMANTHAPPA AND SON

The Supreme Court held that under Section 25(3) of the Mysore Income-tax Act, 1923, the requirement for discontinuance of business is factual and pertains to the business itself, not the ownership. The Court found that there was no factual cessation of the business after the partition of the Hindu undivided family, as the partnership continued the same business. Consequently, the appeal against the Mysore High Court's ruling favoring the assessee was dismissed, affirming that the business had not been discontinued within the meaning of the statute.