Section 185 of Income Tax Act "Assessment when section 184 not complied with"
185. Notwithstanding anything contained in any other provision of this Act, where a firm does not comply with the provisions of section 184 for any assessment year, the firm shall be so assessed that no deduction by way of any payment of interest, salary, bonus, commission or remuneration, by whatever name called, made by such firm to any partner of such firm shall be allowed in computing the income chargeable under the head "Profits and gains of business or profession" and such interest, salary, bonus, commission or remuneration shall not be chargeable to income-tax under clause (v) of section 28.
187. (1) Where at the time of making an assessment under
section 143 or section 144 it is found that a change has
occurred in the constitution of a firm, the assessment shall
be made on the firm as constituted at the time of making the
assessment.
(2) For the purposes of this section, there is a change in
the constitution of the firm-
(a) if one or more of the partners cease to be partners or
one or more new partners are admitted, in such circumstances
that one or more of the persons who were partners of the
firm before the change continue as partner or partners after
the change ; or
(b) where all the partners continue with a change in their
respective shares or in the shares of some of them :
Provided that nothing contained in clause (a) shall apply to
a case where the firm is dissolved on the death of any of
its partners.
188. Where a firm carrying on a business or profession is succeeded by another firm, and the case is not one covered by section 187, separate assessments shall be made on the predecessor firm and the successor firm in accordance with the provisions of section 170.
What is Direct payment? What is Salary? Section 191 and 192 of Income Tax Act 1961
What are Dividends? Section 194 of Income Tax Act 1961
What is Rent? Section 194 I of Income Tax Act 1961
What is Interest other than Interest on securities? Section 194A of Income Tax Act 1961
What is Payments to contractors? Section 194C of Income Tax Act 1961