(1) Where any business or profession carried on by a firm or an association of persons has been discontinued, or where a firm or an association of persons is dissolved, assessment of the total income or the firm or association may be made as if no such discontinuance or dissolution had taken place; and all the provisions of this Act shall, so far as may be, apply accordingly.

(2) Where an assessment is made under sub-section (1) in respect or a firm or an association of persons, every person who was a partner of the firm or member of the association at the time of discontinuance of business, or as the case may be, dissolution of the firm or association, and the legal representative of any such person who is deceased, shall be jointly and severally liable for the said tax found payable by the firm or association upon such assessment and shall, for the purpose of recovery of such tax, including penalty and other sum payable, be deemed to be an assessee; and the provisions of this Act shall apply accordingly.