Dave, J. —This is a reference by the Income Tax Appellate Tribunal (Delhi Bench C) under sec. 66(1) of the Income Tax Act.

2. The question which has been referred to us is as follows: —

"Whether the income from property has been properly included in the assessment of Shri Mukat Behari Lal Bhargava for the year 1957-58."

3. In order to appreciate the question of law involved in the reference, it would be proper to set out, in brief, the facts which have given rise to it.

4. Shri Mukat Beharilal Bhargava is the adopted s/o Shri Binodilal Bhargava. The said adoption took place about 40 years back. Shri Binodilal expired in the year 1937 leaving behind him, his adopted son Shri Mukat Beharilal whose wife gave birth to a daughter in 1942. Shri Binodilal had left certain ancestral properties at the time of his death. The income from these properties was assessed as that of an individual i.e. of Shri Mukat Beharilal Bhargava upto the assessment year 1955-56. In the returns which were filed for the assessment years 1956-57 and 1957-58 the income from these properties was shown as that of a Hindu undivided family. For the assessment year 1957-58 i.e. the financial year ending on 31.3.1957, the

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