L.—Discontinuance of business, or dissolution
Discontinued
business.
92176. (1) Notwithstanding anything contained in section
4, where any business or profession is discontinued in any assessment year,
the income of the period from the expiry of the previous year for that
assessment year up to the date of such discontinuance may, at the discretion of
the 91[Assessing] Officer, be charged to tax in that assessment year.
(2) The total income of each completed
previous year or part of any previous year included in such period shall be
chargeable to tax at the rate or rates in force in that assessment year, and
separate assessments shall be made in respect of each such completed previous
year or part of any previous year.
(3) Any person discontinuing any business or
profession shall give to the 93[Assessing] Officer notice of such discontinuance within fifteen days
thereof.
94[(3A) Where any business is discontinued in
any year, any sum received after the discontinuance shall be deemed to be the
income of the recipient and charged to tax accordingly in the year of receipt,
if such sum would have been included in the total income of the person who
carried on the business had such sum been received before such discontinuance.]
(4) Where any profession is discontinued in
any year on account of the cessation of the profession by, or the retirement or
death of, the person carrying on the profession, any sum received after the
discontinuance shall be deemed to be the income of the recipient and charged to
tax accordingly in the year of receipt, if such sum would have been included in
the total income of the aforesaid person had it been received before such
discontinuance.
(5) Where an assessment is to be made under
the provisions of this section, the 95[Assessing] Officer may serve on the person whose income is to be
assessed or, in the case of a firm, on any person who was a partner of such
firm at the time of its discontinuance or, in the case of a company, on the
principal officer thereof, a notice containing all or any of the requirements
which may be included in a notice under 96[clause (i) of sub-section (1) of section
142] and the provisions of this Act shall, so far as may be, apply
accordingly as if the notice were a notice issued under 96[clause (i) of sub-section (1) of section 142].
(6) The tax chargeable under this section
shall be in addition to the tax, if any, chargeable under any other provision
of this Act.
(7) Where the provisions of sub-section (1)
are applicable, any notice issued by the 97[Assessing] Officer under 98[clause (i) of sub-section (1) of section
142 or] section 148 in respect of any tax
chargeable under any other provisions of this Act may, notwithstanding anything
contained in 99[clause (i) of sub-section (1) of section
142 or] section 148, as the case may be,
require the furnishing of the return by the person to whom the aforesaid
notices are issued within such period, not being less than seven days, as the 1[Assessing] Officer may think proper.
