COMMISSIONER OF INCOME TAX Vs. JASUMAL DEVANDAS

JUDGEMENT

(1.) THIS reference at the instance of the Revenue is made by the Tribunal under Section 256(1) of the Income-tax Act, 1961, for decision by this court of the following question of law, namely:

(2.) THE material facts are these. THE assessee is a firm, which was originally constituted on January 1, 1968, with four partners and the same was granted registration. On June 30, 1975, one of the partners, Jasumal, expired. A new firm was constituted on July 7, 1975, with effect from July 3, 1975, in which the new partners (sic) of income for the assessment year 1976-77, one for the period from January 1, 1975, to June 30, 1975, and another for the period from July 3, 1975, to December 31, 1975.

(3.) AT the outset, it may be mentioned that an amendment has been made in Section 187(2) of the Income-tax Act, 1961, by adding a proviso therein with effect from April 1, 1975, as under :