COMMISSIONER OF INCOME TAX Vs. SANT MOTOR STORES

JUDGEMENT

(1.) THIS is a reference under s. 256(1) of the IT Act. The following question of law has been referred to this Court:

(2.) THE assessment year involved is 1976-77. Originally the assessee-firm consisted of six partners including three minors Km. Manprit, Dilprit Kaur and Inderpit Kaur. A fresh partnership deed was drawn w.e.f. 30th Sept., 1975. Harjeet Singh. Bhajan Singh and Smt. Amrit Kaur, who were also the partners in the old firm continued to be partners in the firm even after 30th Sept., 1975. THE aforesaid three minors retired from the partnership. Sec. 187(2) of the IT Act provides that on retirement of partners, the old firm continues as it is a case of reconstitution of firm.