F.—Succession to business or profession
Succession
to business otherwise than on death.
170. (1) Where a person carrying on any business or profession (such person hereinafter
in this section being referred to as the predecessor) has been succeeded
therein by any other person (hereinafter in this section referred to as the
successor) who continues to carry on that business or profession,—
(a) the predecessor shall be assessed in respect of the income of the
previous year in which the succession took place up to the date of succession;
(b) the successor shall be assessed in respect of the income of the
previous year after the date of succession.
(2) Notwithstanding
anything contained in sub-section (1), when the predecessor cannot be found,
the assessment of the income of the previous year in which the succession took
place up to the date of succession and of the previous year preceding that year
shall be made on the successor in like manner and to the same extent as it
would have been made on the predecessor, and all the provisions of this Act
shall, so far as may be, apply accordingly.
(3) When any sum
payable under this section in respect of the income of such business or
profession for the previous year in which the succession took place up to the
date of succession or for the previous year preceding that year, assessed on
the predecessor, cannot be recovered from him, the 67[Assessing] Officer shall record a finding to
that effect and the sum payable by the predecessor shall thereafter be payable
by and recoverable from the successor, and the successor shall be entitled to
recover from the predecessor any sum so paid.
(4) Where any
business or profession carried on by a Hindu undivided family is succeeded to,
and simultaneously with the succession or after the succession there has been a
partition of the joint family property between the members or groups of
members, the tax due in respect of the income of the business or profession
succeeded to, up to the date of succession, shall be assessed and recovered in
the manner provided in section 171, but without
prejudice to the provisions of this section.
Explanation.—For the purposes of this section, “income”
includes any gain accruing from the transfer, in any manner whatsoever, of the
business or profession as a result of the succession.
