Judgment

SHAH, J. : Krishnappa and his two sons -Thimmayya and Venkatanarsu - constituted a Hindu undivided family. They carried on business in mining in the name and style of Krishnapa and Sons. The family was disrupted in 1946, and all its properties were divided among the members of the family. The business of Krishnappa and Sons was taken over by a firm of which the partners were Krishnappa and his two sons. A private limited Company styled "Krishnappa Asbestos and Barytes (Private) Ltd." took over the business of the firm on May 21, 1947 for Rs. 2,04,000. Thimmayya obtained employment under the Company as Mines Superintendent at a monthly salary of Rs. 400 and Venkatanarsu as General Manager at a monthly salary of Rs. 500.

2. Proceedings for assessment of tax due by the Hindu undivided family for the years 1941-42, 1942-43, 1944-45, 1945-46 and 1946-47 were pending at the time when the Hindu undivided family was disrupted. On May 20, 1946, Venkatanarsu claimed before the Additional Income-tax Officer, Cuddapah that the property of the Hindu undivided family had been partitioned among the members in definite portions. For reasons which do not appear from the record, this claim wa