1. This reference under section 256(1) of the Income-tax Act, 1961, is at the instance of the Revenue for answering the following question of law, namely :

"Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that as soon as Shri Indramal, partner, died on November 5, 1976, the assessee-firm was automatically dissolved meaning thereby that it was a case of succession and not a change in constitution and that section 187 of the Income-tax Act, 1961, does not govern cases of this type ?"

2. The assessee-firm consisted of three partners constituted by a deed of partnership dated May 14, 1965. One of the terms of the deed was that the partnership would not stand dissolved on the death of any of its partners. One of the partners, Indramal, died on November 5, 1976, during the accounting period of the relevant assessment year 1978-79. The remaining partners continued the business of the firm after admitting some more partners therein. The assessee claimed the making of two assessments, one for the period up to November 5, 1976, on the date of death of Indramal and another for the subsequent period. The Income-tax Officer rejecte