Judgement

S. R. DAS J.: This is an appeal from the judgment and order pronounced on 20-6-1951 by a Bench of the Calcutta High Court on a reference made by the Income-tax Appellate Tribunal under S. 66 (1), Income-tax Act read with S. 21, Excess Profits Tax Act. whereby the High Court answered in the affirmative the following question :

"Whether on the facts and circumstances of this case there is a change in the persons carrying on the business within the meaning of S. 8 (1), Excess Profits Tax Act, 1940, with effect from 14-4-1943, when the business, which had previously been carried, on in partnership between two Dayabhaga Hindu Undivided Families, was carried on by a partnership between the separated male members of the two families?"

2. The controversy arose at the time of the assessment of the appellant firm to Excess Profits Tax for three chargeable accounting periods, namely, 14-4-1943 to 13-4-1944, 14-4-1944 to 13-4-1945 and 14-4-1945 to 31-3-1946. During the aforesaid chargeable accounting periods the status of the assessee was that of a firm registered under S. 26-A. Income-tax Act.

In the chargeable accounting period ending 13-4-l944 there was no profit in excess of the stan