The Order of the Court was pronounced by

Rajagopala Ayyangar, J.-

The question referred to us, for decision under section 66(1) of the Income-tax Act, is:

“In the absence of any other evidence, is the recital in the partnership deed of the 20th April, 1947, in respect of the General Commercial Distributors enough for drawing the inference that the moneys invested by the assessee in the business carried on by him, came out of funds belonging to the undivided family consisting of the assessee and his minor son.”

The facts giving rise to the reference may be shortly stated. Subramania Ayyar, the assessee, quarrelled with his father and came out of the family in or about April 1944. With some moneys given to him by his father after the separation, and by his mother, he started a concern called the General Commercial Corporation in September, 1944. The partners in this concern were Subramania Ayyar and one M.S.Ramamoorthy Ayyar. This was wound up on the 31st March, 1947, and a new firm called the General Commercial Distributors came into being on and from the 1st April, 1947, with M.S.Ramamoorthy Ayyar and his son, one Sundaram Ayyar, holding a quarter share each and the assessee Subramania

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