Judgement

RAMASWAMI, J. : This appeal is brought, by certificate, against the judgment of the Madras High Court, dated December 18, l962 in T. C. No. 143 of 1960.

2. The appellant (hereinafter called the assessee ) was a firm called O.RM.M.SP.SV. Firm which was registered under S. 26-A of the Income-tax Act, 1922 (hereinafter called the 1922 Act ). Prior to the constitution of the firm, the partners were members of a Hindu undivided family. The family which consisted of Meyyappa Chettiar and his two brothers carried on money-lending business in India and in the former Federated Malaya States and it was assessed under the Indian Income-tax Act, 1918 (hereinafter called the 1918 Act ). There was a disruption of the joint family status on June 2, 1938, and thereafter the members of the family continued the business as Partners. In the course of the assessment for the year 1939-40 it was claimed by Meyyappa Chettiar, one of the members of the family that having regard to the severance of joint family status, the income of the family from April 13, 1938 to June 2, 1938 was not liable to be taxed by reason of the provisions of S. 25 (3) and (4). The Income-tax Officer accepted the fact