Dipak Kumar Sen, J. - (1.) M/s. Joshi & Co., the assessee, is a partnership firm. Till December 16, 1975, the partners of the assessee were Amritlal Parkhani, Prataprai Joshi, Dilip Joshi and Bhupendra Joshi. The partnership was constituted by a deed dated April 28, 1973, and contained, inter alia, the following clause : " If any partner shall die during the partnership, then his heirs executors, administrators or representatives or any person or persons to whom he may by will bequeath the same shall be entitled to the share of such deceased partner in the capital, stock, property and effects of the partnership business and may either continue as a partner or partners in the business in respect and to the extent of the share and interest of such deceased partner or may sell such share and interest in the same manner as are hereinbefore contained in Clause 17 concerning a sale by a retiring partner."
(2.) Bhupendra Joshi, one of the partners of the assessee, died on December 16, 1975--15 days prior to the end of the accounting year of the assessee ending on December 31, 1975.
(3.) After the death of Bhupendra, it was agreed between the continuing partners and the heirs of Bhupendra that Jitendra Joshi, a son of Bhupendra, would be admitted as a partner in the firm. A new deed of partnership was drawn up and executed on January 7, 1976. It was recorded in the new deed that the continuing partners had been carrying on the said partnership business along with the new partner, Jitendra, with effect from December 17, 1975.;