The real question which arises in this reference is whether it can be said that a firm which has been dissolved "cannot be found" within the meaning of the proviso to sub-section (2) of Section 26 of the Indian Income Tax Act, 1922, notwithstanding that all the members of the firm are alive and can be found.

The assessee is the proprietor of a business carried on under the style of the National Cycle Importing Company. Up to the end of the Samvat year 1994, that is, up to October 23, 1938, this business was owned by the assessee in partnership with two others, Vanamali Premchand Shah, and Fulchand Bhaichand Shaw. On October 24, 1938, the first day of the Samvat year 1995, the assessee took over the entire business and the partnership was dissolved as from that date. In the Samvat year 1995 the Income Tax Officer assessed the total income of the business for the year 1994 at Rs. 16,500. The assessees share of this amount was Rs. 7,427 and Fulchand Bhaichand Shaws share Rs. 4,950, and they were assessed to Income Tax on these amounts respectively. The third partner was not assessed on his share (Rs. 4,125) as the Income Tax Officer was informed that he had ceased to be a partn