Ramaswami, J.

1. In this case the assessment relates to the year 1944-45. The assessee is a Hindu undivided family and during the accounting year the asseessee carried on contract business and had a share in the firm of Jokhiram Jagannath. The accounting year corresponds to the period from 1-4-1943 to 31-3-1944. The assessee had obtained contracts from the Public Works Department and from the Defence Department. For the Public Works Department the assessee executed two contracts. The work of these contracts was taken up on 14-4-1943 and completed on 12-5-1944. For the Defence Department the assessee executed a contract known as Hirji Hospital contract. The work of this contract was started on 14-4-1943 and was closed on 3-12-1944. In the return for the assessment year 1944-45 the assessee did not show any income with respect to the contracts of the Public Works Department or with respect to the military contract. The assessee, on the other hand, showed an income of Rs. 12,000 in respect of his share of profit from the partnership business.

Before the Income-tax Officer the case of the assessee was that the contracts of the Public Works Department and the military contract w