DIPAK KUMAR SEN, J.

( 1 ) K. C. Bose and Co. of Calcutta, the assessee, is a firm of chartered accountants constituted at its inception by K. C. Bose and D. Banerjee under a partnership deed dated July 31, 1957. Later, one T. G. Menon was inducted as a partner in the firm when a fresh deed dated July 31, 1960, was executed by the three partners. Under the said deed, the partnership was for a limited period of one year and it was further provided that the goodwill and assets of the firm excluding outstanding professional fees would remain vested with K. C. Bose and D. Banerjee, the former having 75% share therein and the latter the balance 25%. Clause 16 of the said deed provided as follows :"in the event of the death of the party of the first part or the party of the third part during the continuance of the partnership, their shares in the goodwill of the firm would automatically pass on to the continuing partners and as a consideration therefor, in the case of the party of the first part, his widow will be credited with a sum of Rs. 50,000 and in the case of the party of the third part, his widow will be credited with a sum of by Rs. 16,000 debiting the amounts to the goodwill ac

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