JUDGMENT

Bharucha, J.-There being a conflict in the decisions of the High Courts, the Income Tax Appellate Tribunal has referred to this Court, under Section 257 of the Income Tax Act, 1961, the following question :

"Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in holding that there should be two assessments, one for the period from 1.6.1973 to 12.1.1974 and the other for the period from 13.1.1974 to 30.6.1974, as the assessee s case did not fall within the provisions of Section 187(2) of the Income Tax Act, 1961."

2. The relevant assessment year is A.Y. 1975-76. The relevant accounting year ended on 30th June, 1974.

3. The assessee is a partnership firm. It was constituted under a deed of partnership dated 18th July, 1968. Its three partners were Mrs. Ellen Keki Modi, Mr. Rustom Keki Modi and Ms. Maneck Keki Modi. Mrs. Ellen Modi died on 12th January, 1974. There being no provision in the deed of partnership contemplating the continuance of the partnership in the event of the death of a partner, the partnership stood dissolved. No deed of dissolution was executed but the surviving partners executed a fresh deed of partnership for car