RAMANUJAM J.

The following question has been referred to us under s. 256(1) of the I.T. Act, 1961 (hereinafter referred to as "the Act"), for our opinion at the instance of the assessee

"Whether the notice dated March 25, 1967, issued under section 148 was validly served on the assessee ?" *

The assessee-firm consisting of five partners, (1) Shri P. Kandaswamy Pillai, (2) Shri C. Palani Velayutham Pillai, (3) Shri P. Alagam Perumal, (4) Shri S. Marimuthu, and (5) Shri S. Somasundaram Pillai, was constituted with effect from May 25, 1957, for carrying on the business of film distribution. Clause (iv) of the partnership deed provided that Shri Kandaswami Pillai should manage the affairs of the partnership as its managing partner

The firm was assessed for the first time for the assessment year 1959-60 on a total income of Rs. 73, 935. As against the said assessment, the assessee preferred an appeal. In that appeal, the AAC directed the deletion of Rs. 72, 500 on the ground that the said amount has to be considered as income from undisclosed sources for the assessment year 1958-59 and not for the assessment year 1959-60

As a result of the said appellate order, the ITO initiate