JUDGMENT

NIAMATULLAH, J. - This is a reference u/s 66 (3) by the Income Tax Commissioner. There is a connected reference No. 40 of 1934. The assessee in the present case is a joint Hindu family represented by its karta, Lala Ramratan Das. The assessee in the connected case is a joint Hindu family represented by its karta, Lala Jaidayal. The two joint families entered into a partner ship having equal share and became a registered firm styled Jaidayal Madangopal. This registered firm (consisting of the two joint families as partners) became a partner in nine other unregistered firms. On a reference made by the Income Tax Commissioner on a previous occasion it has been held by a Bench of this Court that the registered firm (consisting of the two joint families) could not in law be a partner in the aforesaid nine unregistered firms. The result of this decision was that each of the two joint families was taken to be severally a partner in the nine unregistered firms and not as a component part of the registered firm.

A sum of Rs. 1,81,338 was received by the registered firm as its share of the profits from some of the unregistered firms of which it had become a partner. The share of each