JUDGMENT :

P.N. Bhagwati, J.

These references raise an interesting question of law relating to the scope and ambit of the charging provision in relation to capital gains tax. The question arises out of assessments to income-tax made on the assessees for the assessment year 1963-64. Prior to 18th February, 1961, the assessees and seven other persons carried on business in partnership in the firm name of Prajapati Tiles Company. The business of the firm was the manufacture of Mangalore tiles and this business was being carried on by the firm ever since its inception on 13th January, 1953. There were disputes between the partners of the firm and as a result of these disputes, the assessees retired from the firm with effect from 18th February, 1962, leaving the other seven as continuing partners of the firm. The terms and conditions of retirement were recorded in a document dated 18th February, 1962, executed by and between the partners. This document was in the form of minutes of the proceedings of the meeting held on 18th February, 1962, at which the decision was taken by the partn