Mr. Madhav takes the retirement from the firm and in case if firm or retiring partner does not intimate the date of retirement of the said partner to the Commissioner by a notice in that behalf in writing then what shall be the consequence?
Where any partner retires from the firm, he or the firm, shall intimate the date of retirement of the said partner to the Commissioner by a notice in that behalf in writing and such partner shall be liable to pay tax, interest or penalty due up to the date of his retirement whether determined or not, on that date. If no such intimation is given within one month from the date of retirement, the said liability of retiring partner shall continue until the date on which such intimation is received by the Commissioner.
In our view, this point will be litigation prone issue in times to come.