JUDGMENT

RANGANATHAN, J. - This is the assessees appeal from a judgment of the Madras High Court dated January 10, 1975 answering three questions referred to it by the Income Tax Appellate Tribunal in favour of the revenue and against the assessee. The reference related to the assessment year 1961-62, the previous year in respect of which commenced on April 13, 1960. The judgment of the High Court is reported as A. L. A. Firm v. CIT ((1976) 102 ITR 622 (Mad)).

2. The appellant-assessee is a partnership firm. Since 1949, it was carrying on, in Malaya, a moneylending business and, as part of and incidental to the said business, a business in the purchase and sale of house properties, gardens and estates. It had been reconstituted under a deed dated March 26, 1960. The firms accounts for the year 1960-61, which commenced on April 13, 1960, would normally have come to a close on or about April 13, 1961. However, the firm closed its accounts as on March 13, 1961 with effect from which date it was dissolved. Along with its income tax return for the assessment year 1961-62 filed on April 10, 1962, the assessee filed a profit and loss account and certain other statements. In the profit and