1. Two questions have been referred to us by the Commissioner of Income Tax, vis.:

(1) Whether the sum of Rs. 30,450 paid by the assessee to the Government under the instrument of lease dated 2nd July, 1930, is inadmissible as a revenue expenditure; and

(2) Whether after dissolution of the partnership the Income Tax Officer had jurisdiction to assess the firm as a unit and whether Section 44 of the Act gives jurisdiction to the officer both to make a joint and several assessment or whether the individual partners alone are liable to be assessed in respect of their proportionate shares.

2. With regard to question No. 1, the facts are quite sufficiently, stated by the Commissioner of Income Tax in his letter of reference, but, quite briefly they are that the assessee by a deed dated the 2nd July, 1930, got the exclusive right to excavate shells lying under Government property for three years for a payment of Rs. 30,450 payable by certain instalments and described in the instrument as regards Rs. 10,150 (being one-third of the amount stated) as "the annual lease amount". This sum of Rs. 30,450 was originally allowed to be deducted by the Income Tax Officer as being a payment out