Bhopinder Singh Dhillon, J.

1. The brief facts giving rise to this income-tax reference are that Sarvshri Dharam Pal, Sat Dev and Ram Rattan entered into a partnership, vide partnership deed dated December 8, 1954, for carrying on the business of wholesale cloth dealers. Shri Ram Rattan died on June 6, 1966. There was no provision in the partnership deed for the continuance of the partnership in the event of death of any partner and, therefore, it is pleaded by the assessee that, in view of the provisions of Section 42(c) of the Indian Partnership Act, the firm stood dissolved on June 6, 1966, On June 9, 1966, a new partnership was formed between Sat Dev and Dharam Pal, partners of the dissolved firm, and Shri Sham Lal, son of the deceased partner, Shri Ram Rattan, Two returns were filed for the assessment year 1967-68, the first for the period from December 18, 1965, to June 8, 1966, and the second for the period from June 9, 1966, to March 31, 1967. The Income-tax Officer, while assessing, vide his order dated March 13; 1968, clubbed the income of the two firms and passed a single assessment order holding the view that it was a case of a change in the constitution of the