KULWANT SINGH TIWANA, J.

1. The question formulated for reference under section 256 (2) of the Income-tax Act referred to this court is as under :

"Whether, on the facts and in the circumstances of the case, the assessment of the assessee as unregistered firm was valid when two of its partners had already been assessed separately in respect of their shares of income from the partnership business ?"

The facts giving rise to this reference are that firm Rodamal Lal Chand of Baba Bakala has five partners. Out of them Lal Chand and Sohan Lal were assessed to income-tax on February 5, 1968, in their individual capacity in respect of their income from the firm for the assessment year 1963-64. The Income-tax Officer simultaneously proceeded to assess the firm, vide separate order dated 26th March, 1968, for the same year. The assessee-firm raised an objection that when the partners have been assessed in their individual capacity for their share income in the firm, the firm could not be legally assessed separately. Their appeals before the Appellate Assistant Commissioner and the Income-tax Appellate Tribunal failed. The assessee-firm then approached this court. On a direction from