B. P. JEEVAN REDDY, CJ.

( 1 ) THE assessee is a firm. It consisted of seven partners. The partnership was constituted under a deed of partnership dated February 14, 1971. One of the partners, D. K. Agarwal, died on september 25, 1971. Clause (ii) of the partnership deed provided that the death of a partner shall not result in the dissolution of partnership and that it shall continue notwithstanding the death. Accordingly, the firm continued. A new partnership deed was executed on January 20, 1972, by the remaining partners. For the assessment year 1972-73, the assessee filed two returns--one for the period July 1, 1971, to September 25, 1971, and the other for the period September 26, 1971, to March 31, 1972. The Income-tax Officer was, however, of the opinion that it was only a case of reconstitution of firm and, accordingly, clubbed both the periods and made one assessment. On appeal, the Appellate Assistant Commissioner agreed with the Income-tax Officer whereupon the assessee carried the matter in further appeal to the Tribunal. The Tribunal noticed clause (ii) of the partnership deed and also the fact that no deed of dissolution was executed on the death of Sri D. K. Agarwal a

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