Judgment

ALAGIRISWAMI, J.:- Sixteen persons constituted a partnership firm known as M/s. Narayandas Kedarnath under an agreement dated 19-5-1930. Out of the said 16 partners three were outsiders and thirteen were members of three Hindu undivided families whose kartas were respectively Narayandas Pokarmal, Meghraj Pokarmal and Hanumandas Sewakram Narayandas Pokarmal had three sons-Govindram, Bhagwandas and Vasudeo; Meghraj Pokarmal had also three sons - Onkarmal, Banarsilal and Beniprasad; and Hanumandas Sewakram had four sons - Kedarnath, Banarsidas, Durgaprasad and Harkisondas. Though the firm consisted of 3 undivided Hindu families the income-tax assessment till the year 1939-40 was on all the sixteen individuals. From 1939-40 to 1941-42 the Income-tax Officer assessed these 13 persons not as individuals but as three Hindu undivided families on the basis of a settlement between them and the Department. Thereafter all the sixteen persons were to be individually assessed. Nevertheless, the Income-tax Officer proceeded to make the assessment as though the three H.U.Fs. still continued. The members of the HUFs disputed this and the Income-tax Appellate Tribunal by an order dated 31-7-