Judgment

HEGDE, J.:- These are appeals by Special Leave. They arise from a common judgment of the Andhra Pradesh High Court in a reference under Section 66 (i) of the Indian Income Tax Act, 1922, to be hereinafter referred to as the "Act". The reference in question relates to the assessment of the assessee for the assessment years 1954-55, 1955-56 and 1956-57. The question of law referred by the Tribunal is "whether on the facts and the circumstances of the case, the assessments made on the firm, for each of the assessment years 1954-55, 1955-56 and 1956-57, are valid in law?"

2. Now we shall set out the material facts as could be gathered from the case stated by the Tribunal. Up to and including the assessment year 1953-54 business with which we are concerned in this case, was carried on by Vadde Pullaiah. He was assessed as an individual . On March 20-3-1953 he entered into a partnership consisting of himself and three others. That partnership was known as "M/s. Vadde Pulliah & Co. , In that partnership Pulliah had 8 as. share and out of the remaining three partners two had 3 as. share each and one had 2 as. share. For the assessment years 1954-55, 1955 56 and 1956-57, this firm f