JUDGMENT - S. T. DESAI J.:

In this reference made at the instance of the Commissioner of Income-tax, Ahmedabad, everything has been said that could possibly have been said on behalf of the Revenue. The assessee is a registered firm of two partners Vithaldas Dhanjibhai and his son Harjivandas Vithaldas carrying on business at Jamnagar in Saurashtra. The relevant assessment year is 1952-53, the accounting year being S Y. 2007 ending on 30th October 1951. A writing was executed on 2nd February 1946 by Vithaldas, the father, in which he declared his intention in writing in order to allay the fears of his son that he might remarry. He stated in that writing that out of his 1/2 share in the profits he would give l/4th share to the wife of his son and another l/4th share to Manu, his grand-son, meaning thereby that he would keep to himself only 1/2 of his 8 annas share in the profits of the partnership. The account of the partners at the end of S. Y. 2003 showed this. To the credit of the two partners stood the sums of Rs, 8,83,070/-. These sums represented their share of the capital and their accumulation of profits upto the end of S. Y. 2003. On Aso Vad 30, S. Y. 2003 (12th November 1947

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