M.R.Sharma, J.

1. The firm known as Messrs. Jupiter Foundry and Machines (Knives), Amritsar (hereinafter referred to as "the assessee"), was constituted under a partnership deed dated September 29, 1964, with four partners, namely, Shri Surinder Singh, Shri Joginder Singh, Shri Gurbachan Singh and Shri Manmohan Singh. On December 27, 1966, Shri Surinder Singh retired and the firm was dissolved. The dissolution deed dated December 28, 1966, shows that the accounts were settled and the remaining partners took over the business including the assets and liabilities of the partnership firm. In other words, they continued to carry on the same business in the same name and style under a new partnership deed of the same date.

2. On September 30, 1967, the assessee-firm as constituted on December 28, 1966, filed a consolidated return showing the income for two periods, that is, from April 1, 1966, to December 27, 1966, and from December 28, 1966, to March 31, 1967. The assessee also filed a declaration in Form No. 12 for continuance of the registration under Section 184(7) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), for the assessment year 1967-68, relevant t