The provisions of section 187, 188 and 189 of the Income-tax Act, 1961 are not applicable in a case where a firm gets dissolved under the provisions of the partnership law.

( 1 ) THESE two references can be disposed of by a common judgment as there is a common question of law. In ITR 1/73 the assessee is a firm carried on in the name and style of M/s. Sant Lal Arvind Kumar, Delhi. It had four partners, Shri Sant Lal, Shri Hukam Chaad, Smt. Prem Wati and Smt. Gaitri Devi. On 13-7-1968 Shri Sant Lal expired. The original partnership deed contained no provision that the death of any partner would not dissolve the firm audit was common ground at the various stages that when Sant Lal died on 13-7-1968 there was adissolution of the firm of four partners referred to above. The firm books of account were closed on that date. Subsequently apartnership deed was executed on 16-7-1968 under which the three other erstwhile partners constituted a partnership With Arvind Kumar, a grandson of Shri Sant Lal and this partnership continue to carry on the business previously carried on by the firm of four partners. Shri Sant Lal had 30% share in the firm out of which 25 % was given to Arvind Kumar and 5% was added to the share of Smt. Gaitri Devi, one of the three old partners. For the assessment year 1969-70 two separate returns of income were filed in the name of Sant Lal Arvind Kumar. The first return of income showed the income for the. period from 1-4-1968 to 13-7-1968. The second return showed the income from 14-7-1968 to 28-3-1969. The assesses s claim was that on the death of Shri Sant Lal the earlier firm had been dissolved, consequently there were two separate and independent firms in existence for the two periods. mentioned above and that these had to be assessed separately for the assessment year 1969-70. The Income-tax officer,, however, took the view that what had happened on 13-7-1968 wasonly "achangein the constitution of the firm" within the. meaning of section 187 of the Income-tax Act, 1961 and that the firm of Sant Lal Arvind Kumar as constituted at the time of the assessment was assessable for the assessment year 1969-70 in respect of the income of the entire period from 1-4-1968 to 31-3-1969, the death of Shri Sant Lal notwithstanding. Of course the income of the previous year was apportioned on time basis and allotted in respect of the first period to the four partners mentioned in the first deed and in respect of the second period to the four partners mentioned in the second deed. ft is the correctness of this action of the Income-tax officer that is being challenged in this reference. The Income-tax appellate Tribunal having accepted the assessee s plea and decided the appeal before it in favour of the assessee the following question of law has been referred to this court at the instance of the Commissioner of Income-tax :

"whether on the facts and in the circumstances of the case the appellate Tribunal was right in law in holding that two assessments should be made on the firm of M/s. Sant Lal Arvindkumar for the assessment year 1969-70 in regard to its income for two periods viz. 1-4-1968 to 13-7-1968 and 13-7-1968 to 28-3-1969 falling in one accounting year, holding that it Was not a case of change in the constitution of the firm governed by the provisions of section 187 ?"in Income-tax Reference No. 64/73 the facts are similar. The assessment year concerned is 1966-67, the relevant previous year being the year which ended on 23-10-1965. A firm known as m/s. K. Gian Chand Jain and Co. has been constituted under an instrument of partnership dated 17-1-1963. The partners were Gian Chand and his four sons. There was no clause in the partnership deed providing that the partnership shall not be dissolved by the death of any of the partners. The assessee was being assessed to income tax with reference to a previous year which in respect of the assessment year 1966-67 would have normally ended on 23-10-1965. However, on 5-2-1965 Gian Chand died. It is common ground that on the death of Gian Chand the firm was dissolved. The books of accounts were closed. On 8-2-1965 a fresh deed