(1.) M/s. Joshi & Co., the assessee, is a partnership firm. Till December 16, 1975, the partners of the assessee were Amritlal Parkhani, Prataprai Joshi, Dilip Joshi and Bhupendra Joshi. The partnership was constituted by a deed dated April 28, 1973, and contained, inter alia, the following clause :
(2.) Bhupendra Joshi, one of the partners of the assessee, died on December 16, 1975--15 days prior to the end of the accounting year of the assessee ending on December 31, 1975.
(3.) After the death of Bhupendra, it was agreed between the continuing partners and the heirs of Bhupendra that Jitendra Joshi, a son of Bhupendra, would be admitted as a partner in the firm. A new deed of partnership was drawn up and executed on January 7, 1976. It was recorded in the new deed that the continuing partners had been carrying on the said partnership business along with the new partner, Jitendra, with effect from December 17, 1975.