( 1 ) THESE two R. Cs. are inter-connected. We question referred in this R. C. is"whether, on the facts and in the circumstances of the Commissioner of Income-taxs order under section 263, dated 30/01/1973, for the assessment year 1971-72 is sound in law ?"

( 2 ) THE relevant facts are the following : G. Vasappa was the karta of an HUF, which was carrying on consisted of G. Vasappa, the father, and his three sons, viz. , Sri Tikoji Rao, Sri Satyanarayana and Sri Srinivasa Sekhar. With effect from 1/04/1970, the business was converted into a partnership business with three partners, viz. , Vasappa, Tikoji Rao and Satyanarayana. A deed of partnership was drawn up on 7/04/1970. According to this partnership deed, Vasappa was the partner, not in his individual capacity but, as the karta representing the aforementioned HUF, while Tikoji Rao and Satyanarayana were described as working partners. Their shares were fixed in the ratio of 2 : 1 : 1. Registration was applied for under s. 185 of the I. T. Act for the assessment year 1971-72 on the basis of the aforesaid partnership deed dated 7/04/1970. The ITO granted the registration, but when he came to the assessment of the