85. Special provisions regarding assessment of firms.-

85.  Special  provisions  regarding  assessment  of  firms.-

(1)  Notwithstanding anything  contained  in  this Ordinance,  where  the  assessee is  a  firm  and  the total income of the firm has been assessed under sections 82, 83, or 84, as the case may be,-

1[(a)] in the case of registered firm,--

                        (i)   the tax payable by the firm itself shall be determined;

                        (ii)  the total income of each partner of the firm, including therein his share of its income of the income year, shall be assessed and the sum payable by him on the  basis of such assessment shall be determined

(iii)     if the share of any partner is a loss, it shall be set off against his other income or carried forward and set off in accordance with the relevant provision of sections 37,38,39,40,41, and 42;

(iv)  where any such partner is a non-resident, his share of the income if the firm shall be assessed on the firm at the rate which would be applicable if it were assessed on him personally, and the sum so determined as payable be paid by the firm; and ]

(b)  in  the  case  of 2[a  firm],  the  tax  payable  by  the  firm  shall  be determined on the basis of the total income of the firm.

(2) Whenever any determination is made in accordance with the provisions of sub-section  (1),  the  Deputy  Commissioner  of  Taxes  shall,  by  an  order  in writing, notify to the firm-

(a) the amount of tax payable by it, if any ;
(b)  the  amount  of  the  total  income  on  which  the  determination  has been based; and
(c)  the apportionment  of the  amount of  income  between the  several partners.



1Omitted by F.A. 1995
2Subs. for "and unregistered firm" by F.A.1995

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