1. In this case Messrs. Bhimraj Bansidhar carried on wholesale business in cloth and also owned house property in the town of Ranchi. The Hindu undivided, family carried on business till 29-6-1946 on which date the books of the business were closed, the accounts were taken and the net assets were divided among all the members of the Hindu undivided family, namely, Bhimraj (father), Janki Devi (mother), and five sons Atma Ram, Chiranjilal Sawarmal, Prabhu Dayal and Jagdish.

2. On 30-6-1946 a new business-under the same name of Bhimraj Bansidhar was started in the first instance with the four major sons as partners of the firm. A deed of partnership was executed by the four sons, Chiranjilal, Atma Ram, Sawarmal and Parbhu Dayal on 3-9-1946, indicating therein that the partnership was formed with retrospective effect from 30-6-1946. This agreement was varied by a second deed of partnership dated 30-10-1946, by which the benefits of the partnership were extended to the minor son Jagdish. For the assessment year 1948-49, the Hindu undivided family filed a return showing an income of Rs. 2612/- and odd. It was claimed by Bansidhar, who filed the return as the karta, that the clot