(1) Subject to the provisions of section 189, where a business is closed during a financial year, the tax shall be assessed for that year.

(2) In determining the tax for any income year under sub-section (1), the income shall be computed from the beginning of the income year for

(3) If any business is closed in a financial year, a notice shall be given from the closed in such case such period of income for this financial year shall be considered as the tax year.

(4) On failure to give notice under sub-section (3), the Deputy Commissioner of Taxes may direct to the recovery of any sum as penalty for the period up to the date of closure of business, provided that the sum of such penalty shall not exceed the amount of tax for the immediately preceding tax year.

(5) In assessing the tax under sub-section (1) the Deputy Commissioner of Taxes;

(a) the person on whom the tax is to be assessing;

(b) in the case of a firm, who was a partner of the firm at the time of closure; and

(c) in the case of a company, of the principal employee of the company-

After issuing the above notice, after giving at least 7 (seven) days time direct for filing the return in accordance with section 169, the statement and information applicable to the return submission, along with the statements, records and documents mentioned in the notice.

(6) For the purpose of assessment of tax, a notice given under subsection (5) shall be deemed to be a notice under section 172 and the provisions of this Act shall apply to the extent applicable.