In a significant judgment dated 27 January 2026, the Gujarat High Court quashed a reassessment notice issued under Sections 148A and 148 of the Income Tax Act in the case of Guruvayur Infratech Pvt. Ltd. vs ACIT (AY 2021-22).

A partnership firm’s ownership and tax liability continue until it is legally dissolved. The sale of a firm’s property must be taxed in the firm’s hands, not in the hands of its partners, even if the business has been discontinued.