- (1.) In respect of two different assessees the same two questions have come up for answer by us. The questions are as follows : "1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the assessee had no right or claim over the amount of Rs. 18,32,426 brought in the books of account on March 31, 1973, of the firm in which he was a partner till March 31, 1972, when the amount in question, was earned by the firm prior to March 31, 1972 ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that there was no nucleus of the partnership property in the impugned sum of Rs. 18,32,426 brought into the books of the firm on March 31, 1973, when the said sum was earned by the firm during which the assessee was a partner in the firm ?"
(2.) Before we proceed any further we make it clear that in the last part of the second question the word "which" should be struck out and after the word "during" the words "the period when" should be inserted. The facts which have given rise to these questions are briefly as follows : Up to March 31, 1972, there were four partners of the firm, Amirchand Payarelal, of whom two were Surendra Paul and Swaraj Paul. With the expiry of the said date these two assessees retired from the firm. They were apparently both assessees and partners in their respective capacity as karta of the Hindu undivided family, Surendra Paul and others and karta of the Hindu undivided family, Swaraj Paul and others.
(3.) On April 1, 1972, some children of the two retiring partners were introduced as minor partners in the firm of Amirchand Payarelal. The number of minors so introduced was eight. Along with the two other major Pauls the number of partners came to ten. It appears that a sum of Rs. 18,32,426 had been earned by the firm during the period when the two retiring major partners were in the firm as partners ; but the books of the firm up to the date March 31, 1972, did not show this sum under any head of account at all.;