Leach, C.J.

1. This reference has been made by the Commissioner of Income Tax, Madras, in accordance with a direction given to him by this Court under Section 66 (3), Income Tax Act, 1922. The reference involves the interpretation of Section 25 (3) of the Act. The petitioner and his brothers were members of an undivided Hindu family, and when joint the family carried on a money-lending business in India and in the Federated Malay States. The business was of long standing and had been assessed to Income Tax under the Act of 1918. On 2nd June 1938 the joint status was severed. Thereafter, the members of the family continued the business in the same places as partners. The financial year with which this reference is concerned commenced on 13th April 1938. On 22nd December 1939, the petitioner claimed that the income of the family from 13th April 1938 to 2nd June 1938 was not liable to be taxed by reason of the provisions of Sub-sections (3) and (4) of Section 25. The Income Tax Officer accepted the petitioners statement that there had been a partition, but he rejected the contention that the family was not liable to pay the tax on the profits earned between 13th April and 2nd J