COMMISSIONER OF INCOME TAX Vs. SATYA DEO OMPRAKASH

JUDGEMENT

(1.) The Income-tax Appellate Tribunal has referred the following question under Section 256(1) of the Income-tax Act, 1961.

(2.) The assessment year is 1972-73. The relevant previous year ended on March 31, 1972. The assessee is a partnership firm. It consisted of five partners on the first day of the relevant previous year. On May 5, 1971, two of the partners retired and the firm was reconstituted on May 6, 1971, with the remaining partners who took in a new partner, Arun Kumar. Again, on August 7, 1971, one of the partners, Om Prakash, died. The firm was again reconstituted with effect from August 11, 1971, by taking one Sri Kamal Kapoor, the son of the deceased partner, Om Prakash.

(3.) The partnership filed three returns, one for the period April 1, 1971 to May 5, 1971, the second for the period May 6, 1971 to August 7, 1971, and the third for the period August 11, 1971 to March 31, 1972. The Income-tax Officer, however, was of the opinion that there ought to be a single assessment, since it is a case of mere reconstitution of the firm on both the occasions.