CHANDRA REDDY, C. J.

( 1 ) THE question to be answered by us in this reference under Section 66 (1) of the Indian Income-tax Act is framed in these terms: "whether an assessment could be made on a dissolved association of persons without service of notice on all the erstwhile members of the association. "

( 2 ) THIS reference relates to the assessment year 1358 fasli, i. e. , from 1-10-1948 to 30-9-1949, the chargeable accounting period being the year ended 30/09/1948. The assessee is an association of persons styled "the Hyderabad Deccan Liquor Syndicate by member D. D. Italia, Hyderabad," consisting of nine persons and carrying on business in liquor.

( 3 ) IN the relevant assessment year, D. D. Italia, one of the members of the association, had included in his return a sum of Rs. 77,912. 00 as his share of the profits from the said syndicate. Thereupon, the Department initiated the present proceedings by letter dated 2-4-1951 indicating that D. D. Italia had admitted a profit of Rs. 77,912. 00as his share and that the total income of the Syndicate appeared to be Rs. 2. 07 lakhs. Two return forms were annexed to the preliminary letter and the association was required to fill them a

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