COMMISSIONER OF INCOME-TAX Vs. AMBALA FLOUR MILLS

JUDGEMENT

(1.) THE following three questions have been referred to this court under Section 66 of the Income-tax Act, 1922:

(2.) THE first two questions were referred as per the statement of the case dated 24th November, 1961, while the third question was referred in pursuance of an order made by this court.

(3.) THE statement relates to the assessment years 1950-51, 1951-52 and 1952-53, and the assessee is the Ambala Flour Mills, Ambala. The Ambala Flour Mills was previously a partnership concern consisting of three partners Balkishan, Debi Parshad and Jairam Dass. On 29th April, 1948, Jairam Dass filed a suit for dissolution of partnership and rendition of accounts against the other two partners. The trial court awarded a decree in favour of the plaintiff and on appeal the district judge dismissed the suit. On second appeal the learned single judge restored the judgment and decree of the trial court. On appeal under Clause X of the Letters Patent the Division Bench held that the partnership being at will it stood dissolved on the date of the institution of the suit. It was further observed: