Section 94. Liability in other cases.-
(1) Where a taxable person is a firm or an association
of persons or a Hindu Undivided Family and such firm, association or family has
discontinued business-
(a) the tax, interest or penalty payable under this
Act by such firm, association or family up to the date of such discontinuance
may be determined as if no such discontinuance had taken place; and
(b) every person who, at the time of such
discontinuance, was a partner of such firm, or a member of such association or
family, shall, notwithstanding such discontinuance, jointly and severally, be
liable for the payment of tax and interest determined and penalty imposed and
payable by such firm, association or family, whether such tax and interest has
been determined or penalty imposed prior to or after such discontinuance and
subject as aforesaid, the provisions of this Act shall, so far as may be, apply
as if every such person or partner or member were himself a taxable person.
(2) Where a change has occurred in the constitution of
a firm or an association of persons, the partners of the firm or members of
association, as it existed before and as it exists after the reconstitution,
shall, without prejudice to the provisions of section 90, jointly and
severally, be liable to pay tax, interest or penalty due from such firm or
association for any period before its reconstitution.
(3) The provisions of sub-section (1) shall, so far as
may be, apply where the taxable person, being a firm or association of persons
is dissolved or where the taxable person, being a Hindu Undivided Family, has
effected partition with respect to the business carried on by it and
accordingly references in that sub-section to discontinuance shall be construed
as reference to dissolution or to partition.
Explanation.-For the purposes of this Chapter,-
(i) a "Limited Liability Partnership" formed
and registered under the provisions of the Limited Liability Partnership Act,
2008 (6 of 2009) shall also be considered as a firm;
(ii) "court" means the District Court, High
Court or Supreme Court.
