Dipak Kumar Sen, J. - (1.) K.C. Bose & Co. of Calcutta, the assessee, is a firm of chartered accountants constituted at its inception by K. C. Bose and D. Banerjee under a partnership deed dated July 31, 1957. Later, one T. G. Menon was inducted as a partner in the firm when a fresh deed dated July 31, 1960, was executed by the three partners. Under the said deed, the partnership was for a limited period of one year and it was further provided that the goodwill and assets of the firm excluding outstanding professional fees would remain vested with K. C. Bose and D. Banerjee, the former having 75% share therein and the latter the balance 25%. Clause 16 of the said deed provided as follows : "In the event of the death of the party of the first part or the party of the third part during the continuance of the partnership, their shares in the goodwill of the firm would automatically pass on to the continuing partners and as a consideration therefor, in the case of the party of the first part, his widow will be credited with a sum of Rs. 50,000 and in the case of the party of the third part, his widow will be credited with a sum of by Rs. 16,000 debiting the amounts to the goodwill account. These sums of Rs. 50,000 and Rs. 16,000 will be repayable at the rate of Rupees three hundred only per month to the widow of the party of the first part or to her nominee in case of her demise prior to the full repayment of Rs. 50,000 and at the rate of Rupees one hundred only per month to the widow of the party of the third part or her nominee in case of her demise before the full payment of Rs. 16,000. These monthly instalments of Rs. 300 and Rs. 100 will be payable on the last working day of the month for which the instalments are due. For the due payment of these amounts all assets including outstanding fees, cash and bank balances would remain charged. This would, however, not affect the settlement of account of any retiring or deceased partner in terms of Clauses 17 or 20 hereof."
(2.) The partnership was continued thereafter by the said three partners under successive deeds, respectively, dated July 31, 1961, and July 31, 1963.
(3.) The goodwill and assets of the firm excluding outstanding professional fees continued to remain vested in K.C. Bose and D. Banerjee as under the earlier deed dated July 31, 1960.;