(1.) THIS reference at the instance of the Revenue arises the following question :
(2.) WE are concerned with the assessment year 1974 -75. The assessee's the husband was a partner in a firm called M/s. K. G. Mohunta and Bros. when he died, he left the assessee, three sons and a daughter. The assessee was made a partner of the reconstituted firm under a deed dated October 29, 1970, with Geetadevi Mohunta and Rajmohan Mohunta as the her partners. The deed recited that on account of the demise of the assessee's husband, the original firm stood dissolved and his share in the partnership devolved upon his legal heirs, namely, the assessee and her three sons and daughter. Clause 6 of the partnership deed stated that the capital requirements of the firm would be met by the assessee and the said Geetadevi and that the credit balance in the capital account of the assessee's late husband which had devolved upon his legal heirs would be the capital of the assessee. Upon the assessee's eldest son attaining majority, became a partner of the firm. The assessee's daughter got married and relinquished her entitlement, inter alia, to her share in the firm by accepting a sum of Rs. 20,000.
(3.) ON appeal, the Appellate Assistant Commissioner held that there was a diversion of income by overriding title.