M/S NAGARMAL BAIJNATH vs COMMISSIONER OF INCOME TAX

The Supreme Court held that under Section 44 of the Income-tax Act, 1922, prior to its amendment by the Finance Act, 1958, assessments can be made on a dissolved firm if its business has been discontinued. The Court clarified that the joint and several liability for tax extends to partners at the time of dissolution and discontinuance. The appeals were dismissed as the assessments were deemed valid despite the firm's dissolution, affirming the settled law on this issue.