Agarwal, J.

1. The assessee-firm was originally constituted under a partnership deed, dated November 18, 1963. Kashi Prasad and six others were the partners of the aforesaid firm. Kashi Prasad died on May 4, 1965. A fresh partnership deed was, thereafter, executed on May 6, 1965, and a new firm consisting of six old partners and two new partners was constituted, having different shares in the partnership. The assessee-firm, thereafter, submitted two returns of its income for the following periods :

(1) November 6, 1964, to May 5, 1965.

(2) May 6, 1965, to October 24, 1965.

2. The Income-tax Officer issued a notice calling upon the assessee to show cause why the assessments should not be made on the firm as constituted at the time of making the assessment treating it as merely a change in the constitution of the firm in terms of Section 187 of the Income-tax Act. The assessee-firm filed a reply claiming that the old firm was dissolved on May 4, 1965, and, therefore, a new firm came into existence. THE Income-tax Officer held that the old business was continuing and, therefore, it was merely a change in the constitution of the firm. The Income-tax Officer, accordingly, clubbed t