Judgment

SHAH, J.: Ramanathan Chettiar, his son Muthiah Chettiar - called hereinafter for the sake of brevity, Muthiah - and Ramanathan, Annamalai and Alagappan, sons of Muthiah, constituted a Hindu undivided family. The family owned a 3/5th share in M. RM. S. Firm, Seramban in Malaya. The firm was assessed under the Indian Income-tax Act, 1922, in the status of a firm resident within the taxable territories. On September 16, 1950, Muthiah separated from the family taking his 1/5th share in the M. RM. S. Firm. On April 13, 1951 the status of the family became completely disrupted and the three sons of Muthiah took in equal shares the remaining 2/5th share - the grandfather Ramanathan taking no share in the M. RM. S. Firm.

2. For the assessment year 1952-53 Muthiah submitted a return of his income as an individual and stated under the head business income "Kindly ascertain the (assessee s) share of profit and remittances from the Income-tax Officer, Second Additional Circle - I, Karaigudi, in F. 6098-M/ 1952-53 . In Part III of the return Muthiah supplied the following information about his partners :

Name and address of the firm Name of each partner including assessee Share

Messrs. R