Provided further that nothing in the foregoing proviso shall discharge the transferee or the succeeding proprietor as a result of change of his liability to pay tax.

Tax payable on transfer of business

1. (1) When the ownership of the business of a proprietor liable to pay tax is transferred, the transferor and the transferee shall jointly and severally be liable to pay the tax, interest, penalty or any other amount due under this Act in respect of such business which remains unpaid at the time of transfer and for the purpose of recovery from the transferee, such transferee shall be deemed to be the proprietor liable to pay the tax.
2. (2) Where a proprietor dies, his executor, administrator or other legal representative shall be deemed to be the proprietor, for the purposes of this Act, and the provisions of this Act shall apply to him in respect of the business of the deceased proprietor: Provided that in respect of any tax or penalty assessed as payable by any such proprietor or any tax, interest or penalty which would have been payable by him under this Act, if he had not died, all executor, administrator or other legal representative shall be liable only to the extent of the assets of the deceased in his hands.
3. (3) When an undivided Hindu family liable to pay tax or penalty or other amount under this Act is partitioned, the assessment of the tax, interest and the imposition of penalty shall be made as if no partition of the family has taken place, and every person who was a member of the family before the partition shall be jointly and severally liable to pay the tax assessed, interest calculated or penalty imposed.