JUDGMENT

TULZAPURKAR, J. :— This appeal by special leave raises an important question as to whether the sum of Rupees 3,08,187, being the share income of three minor sons from the firm of M/s. Grand Smithy Works for the period from 16-12-1967 to 31-8-1968 is liable to be assessed as the income of the Hindu undivided family - M/s. Y. L. Agarwalla and Company - for the assessment year 1969-70 ?

2. The facts giving rise to the question may briefly be stated as follows: One Yudhisthir Lal Agarwalla, since deceased, was the Karta of a Hindu undivided family known as M/s. Y. L. Agarwalla and Co. (The assessee herein). During his lifetime in his capacity as the Karta of the said Hindu undivided family he carried on business in partnership with three others (Shiv Charan Laul, Ram Gopal Garodia and Tula Ram Budhia) in the name and style of M/s. Grand Smithy Works. His share in that firm was 36%. Under Cl. 13 of the Partnership Deed dated September 20, 1961, pursuant to which the said firm used to carry on its business, it was provided that "the death or retirement of any of the partners shall not have the effect of dissolving this co-partnership; in such an eventuality the co-partnership bus