Sivarajan, J.

This is an appeal filed by the Commissioner of Income Tax, Thiruvananthapuram against the order of Income Tax Appellate Tribunal, Cochin Bench in ITA.No.23(Coch) / 96 dt.17-9-1999. The matter arises under the Income Tax Act, 1961 (for short ‘the Act’). The assessment year is 1991-1992; the relevant previous year ending 31-3-1991. The respondent assessee is a partnership firm engaged in the business of Fertilisers, Pesticides, etc. The said firm was originally constituted by a partnership deed dated 2nd March, 1981 (Annexure-B). The firm consisted of three partners, Sri. P.T.Cheriyan, Mrs.Santha Benjamin and Mrs.Annie Thomas. It was granted registration and the same was being continued. However, two of the said partners i.e. Mrs.Santha Benjamin and Mrs.Annie Thomas had expressed their desire to retire from the partnership and gave notice accordingly. On June 14, 1990 a new partnership deed (Annexure-C) was executed between Sri.P.T.Cheriyan, who was the partner in the original partnership deed, Sri.P.B.Titus and Mrs.Mary Thomas as partners.

2. For the assessment year 1991-’92 the firm filed two separate returns, one for the period from 1-4-1990 to 13-6-1990 an