Per Shri George Cheriyan, Vice-President - This appeal is by the revenue. This appeal relates to the assessment year 1980-81. The assessee is a registered firm. The previous year is from October, 1978 to 20-10-1979.

2. One Sri Chandmal Chunilal was a partner in the assessee-firm till he passed away on 7-5-1977. Thereafter we gathered at the hearing that the firm was reconstituted. It was not a case of dissolution of the firm and succession thereto by another firm. In the reconstituted firm Smt. Dhako Bai, wife of late Chandmal Chunilal, became a partner along with three sons S/Shri Rakeshchand, Kevalchand and Kiranraj. The amount standing to the credit of late Chandmal Chunilal, who was assessed as an individual, was credited in an account in the firm under the style ‘estate of late Chandmal Chunilal’. Sri Chandmal Chunilal left behind a married daughter Smt. Saroj, who did not join the reconstituted firm. To the account styled ‘estate of late Chandmal Chunilal’ interest was credited, A question arose as to whether four-fifth of the interest so credited (i.e., excluding what would have been the share of Smt. Saroj) required to be added in the hands of the firm by virtue of sect