B.P.Jeevan Reddy, C.J. - (1.) Under Section 256(2) of the Income-tax Act, 1961, the Appellate Tribunal has stated the following two questions for the opinion of this court: "1. Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in holding that two assessments should be made separately for the two periods, April 1, 1971, to October 31, 1971, and November 1, 1971, to March 31, 1972 ?
(2.) Whether, on the facts and in the circumstances of the ease, the Tribunal was legally justified in not treating the assessee-firm as reconstituted within the meaning of the clear provisions contained in Section 187(2)(a) of the Income-tax Act, 1961 ? "2. The assessee is a partnership firm. The assessment year concerned is 1972-73. The firm consisted of five partners. Smt. Vindeshwari Devi died on November 1, 1971, three partners retired leaving only one of them, namely, Gopal Narain, as the sole proprietor. On the same day, Gopal Narain took two other persons as partners and the business continued. Only one return was filed for the said assessment year though two sets of accounts were maintained. One set of accounts was maintained from April 1, 1971, to October 31, 1971, and the other from November 1, 1971, to March 31, 1972. Separate applications for registration/continuation were filed. The Income-tax Officer was of the opinion that it was a case of mere reconstitution of firm and, accordingly, made one assessment for the entire year. He also did not accept the return relating to the income, he enhanced it.
(3.) On appeal, a contention was raised by the assessee that two separate assessments should have to be made for the two separate periods, one for the period April 1, 1971, to October 31, 1971, and another for the period November 1, 1971, to March 31, 1972. This plea was accepted by the Appellate Assistant Commissioner against which the Department went up in appeal. The Tribunal dismissed the appeal following the decision of this court in CIT v. Shiv Shankar Lal Ram Nath [1977] 106 ITR 342, whereupon this reference was obtained.;