LAXMIDAS AND CO Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS reference arises out of the reassessment made upon the assessee firm for the asst. year 1948 - 49, the previous year for which was the S.Y. 2003 from 25th Oct., 1946, to the 12th November, 1947.

(2.) AT the material time the assessee was a partnership firm consisting of three equal partners. One of the partners died subsequently in S.Y. 2005 and the firm was dissolved on his death. The original assessment was completed by the ITO on the 24th April, 1950, which was after the dissolution of the firm. The total income was determined at Rs. 3,600. The application under S. 26A made by the assessee was granted and its registration was renewed for the assessment year in question.

(3.) THE assessee applied to the Tribunal under S. 66(1) for a reference to this Court on a number of questions. On the said application the Tribunal held that only two of the several questions, which had been suggested by the assessee, could be regarded as questions of law arising out of its order. It accordingly drew up a statement of the case and referred to this Court the two questions, which were as follows :