Assessment of Reconstituted Or New Firms, and Change of Partnership

Assessment of reconstituted or new firms, and change of partnership (1) Every dealer discontinuing business during the course of an assessment year whose average monthly turnover for the portion of the year ending with the discontinuance of the business is not less than onetwelfth of [rupees two lakh in case of manufacturers or three lakh rupees in case of other dealers] or such larger amount as may be notified under sub-section (2) of section 3 or whose turnover during such period is liable to tax under sub-section (3) of section 3 shall, within thirty days from the date of such discontinuance, give notice of the fact to the assessing authority and shall also submit a statement of his turnover in such form and verified in such manner as may be prescribed.
Explanation: The dissolution of a firm or association of persons or partition of a joint Hindu family or transfer by a dealer of his business shall be deemed to be discontinuance of business within the meaning of this sub-section.
(2) Every dealer commencing business during the course of an assessment year whose average estimated monthly turnover for the remainder of the year is not less than onetwelfth of 1rupees two lakh in case of manufacturers or three lakh rupees in case of other dealers or of such larger amount as may be notified under sub-section (2) of section 3, or whose turnover during such period is liable to tax under sub-section (3) of section 3 shall, within 30 days from the expiry of the month in which business was commenced, give notice of the fact to the assessing authority, and shall submit a statement of his turnover at such intervals, within such period, in such form and verified in such manner as may be prescribed.
(3) If the assessing authority, after such enquiry as it deems necessary is satisfied that the return or returns submitted under sub-section (1) or (2) are correct and complete, and that the average monthly turnover is not less than the amount computed in accordance with sub-section (1) or (2), as the case may be, or the turnover of the dealer is liable to tax under sub-section (3) of section 3, it shall assess the dealer on total turnover shown in the return or returns.
(4) If no return is submitted by a dealer under sub-section (1) or (2) within the period fixed therefor, or if any return submitted by him appears to be incorrect or incomplete, the assessing authority shall, after such enquiry as it deems necessary, determine to the best of its judgment the turnover of the dealer and may assess the tax, if any, payable:
PROVIDED that, if at the end of the assessment year, the average monthly turnover in a case falling under sub-section (1) or (2) is found to be less than the amount specified therein, the tax paid shall be refunded, except to the extent the dealer is liable to deposit it under sub-section (1) of section 29A.
Exception: The above proviso shall not apply to the case of a dealer whose turnover is liable to tax under sub-section (3) of section 3.
Explanation: For the purpose of this section the turnover shall be deemed to be the aggregate of the turnover referred to in sub-section (2) of section 3.