Judgment

SABYASACHI MUKHARJI, J. - By this judgment we will dispose of two appeals first one at the instance of the assessee and second one at the instance of the revenue-but both these appeals deal with one common situation namely the position of the registered firm during the assessment year if one of the partners dies or retires. Civil Appeal No. 1792(NT) of 1974 is an appeal by the assessee from the judgment and order of the Allahabad High Court dated 22nd December, 1972 answering the following question referred to it under S. 256(l), Income-tax Act, 1961, hereinafter referred to as the Act, for the assessment year 1965-66 in favour of the revenue and in the negative :-

"Whether, on the facts and in the circumstances of the case the Tribunal was justified in holding that for the period covered by the old constitution the income was assessable in the hands of the assessee as a registered firm?"

2. For the assessment year 1965-66 the relevant previous year commenced on 17th November, 1963 and ended on 4th November, 1964. The assessee was a partnership firm styled as Messrs Wazid Ali Abid Ali of Phulpur in the district of Azamgarh It was constituted under a deed of partnership dated