Judgment

SUBBA RAO, J.: These appeals raise, though not the same but a similar question on which we have given a decision in Commr. of Income-tax, Ahmedabad v. M/s. Abdul Rahim and Co., Civil Appeal No. 982 of 1963, dated 4-11-1964 : (AIR 1965 SC 1703). The assessee firm was the Managing Agents of Palani Andavar Mills Ltd., Udamlpet. It was originally constituted by a deed of partnership dated June 1, 1934. The following 6 persons were the partners :

(1) G. Venkataswami Naidu . . As. 2.

(2) G. T. Narayanaswamy Naidu . . As. 2.

(3) G. T. Krishnaswamy Naidu . . As. 2.

(4) M. A. Palaniappa Chettiar . . As. 5.

(5) R. Guruswamy Naidu . . As. 2 1/2.

(6) K. Venkatasubba Naidu . . As. 2 1/2.

By subsequent transactions the share of G. Venkataswami Naidu was transferred to his son Vidyasagar and the share of M. A. Palaniappa Chettiar was purchased by R. Guruswamy Naidu, with the result that the 5th Partner. G. Guruswamy, had 71/2 annas share in the partnership instead of 2 1/2 annas share which he held earlier. Guruswamy Naidu and Venkatasubba Naidu, the 5th and 6th partners, belonged to a Hindu undivided family and the beneficial interest of their shares belonged to that family; indeed during