KARUPAKULA SURYANARAYANA SETTY Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The Income Tax Appellate Tribunal, Bangalore Bench has stated a case and referred under S.256 (1) of the Income Tax Act, 1961 (hereinafter called the 'Act') the following question of law for the opinion of this Court.

(2.) The assessee is a partnership firm carrying on business in the manufacture of Agarbatties. The assessment year is 1966-67 for which the relevant previous year is the year ended 31-3-1966. There was a change in the constitution of the firm on 1-9-1965. Before the said date there were six partners in the firm. Thirteen more partners were introduced into the firm with effect from 1-9-1965.

(3.) The, assessee filed a return on 1-8-1966 declaring an income of Rs.1,12,628. However, the said return was revised and two returns were filed in 31-10-1966; one return was for the period from 1-9-1965 to 31-3-1966. The contention of the assessee was that a new firm was constituted with effect from 1-9-1965 and therefore, for the aforesaid two periods two separate assessments shall be made.