JUDGMENT

V.G. Oak, C.J. - This is a reference u/s 256(1) of the Income Tax Act, 1961. Messrs. Brij Mohan Lal Rameshwar Lal is the assessee. It is a Hindu undivided family. The assessment year is 1962-63.

2. There was a registered firm by the name Messrs. Brij Mohan Lal Rameshwar Lal. Up to the assessment year 1961-62, the firm had two partners, Rameshwar Lal and Kundanlal. The two partners respectively represented their Hindu undivided families. On or about the 2nd of February, 1961, Kundanlal died. On February 3, 1961, the firm was reconstituted, partners of the reconstituted firm were Rameshwar Lal as the karta of his Hindu undivided family, Kundanlal's widow, Smt. Bharbati Devi, and her adopted son Prem Chand. Rameshwar Lal's minor son, Ghanshyam, was admitted to the benefits of the partnership. A fresh partnership deed was drawn up on February 22, 1161. In that partnership deed it was mentioned that out of the capital of the Hindu undivided family of Rameshwar lal, partner, a sum of Rs. 60,000 had been divided equally between Rameshwar Lal, Saraswati Devi and Ghanshyam.

3. At the time of assessment for 1962-63, the Hindu undivided family of Rameshwar Lal set up the partial partiti