JUDGMENT:— This is an appeal from a decision of the Bombay High Court in a reference made to it u/ S. 66(1) of the Indian Income-tax Act, 1922 in relation to the assessment year 1959-60 in respect of which the relevant previous year as the Samvat year 2014. A few facts may be stated just to clarify the real issue that has arisen in the case. Mohan Lal Daulat Ram and his son Sevanti Lal were partners under a deed dated 12-11-1953 under which the partners shared profits equally, but the goodwill was to belong solely to Mohan Lal. It is important here to mention that Mohan Lal Daulat Ram and Sevanti Lal were partners in the firm in their individual capacity. Their respective shares of income from the firm was assessed in their hands as their individual profits.

2. Mohan Lal Daulat Ramdied on l7-12-1955. Thereupon a fresh deed of partnership was drawn on 26-12-1955 which was to take effect from 18-12-1955. Under that deed the partners of the firm were Sevantilal and his mother Bai Chandanbai. It was, however, recited in the deed that Sevantilal "has taken Bai Chandanbai, widow of Mohan Lal Daulat Ram, as a partner (representing the family of the deceased Mr. Mohan Lal Daulat Ram)".

3. Th