Sen, J. - (1.) The facts found and/or admitted in this reference are, inter alia, as follows : M/s. Sangam, Calcutta, the assessee, was constituted by a deed on the 30th January, 1961. One Laxmi Devi and one Naraindas Lakhumal were described in the said deed as partners. Business in piece-goods as also cotton and silk goods were carried on under the said deed in Stall No. G-13, Block "G" in Sir Stuart Hogg Market, Calcutta.
(2.) On the 21st February, 1966, a fresh deed was executed by the parties incorporating the terms and conditions, modified from the earlier deed. The relevant terms are as follows: "(a) That the parties hereto would carry on the business in copartnership under the name and style of Sangam in the Stall No. G-13, S.S. Hogg. Market, Calcutta, for further term of 10 years commencing from the 1st day of February, 1966. (b) The entire capital of the business required from time to time for the purpose of carrying on the business would be advanced by the said Naraindas Lakhumul and the said Laxmi Devi would have no concern therewith. (c) The respective shares of the parties in the partnership business would be as follows: Laxmi Devi--Three-fourths part or share thereof. Naraindas Lakhumal--One-fourth part or share thereof. (d) Subject to the terms and of these presents, Naraindas Lakhumal would advance to Laxmi Devi a sum of Rs. 1,000 per month irrespective of the amount of profit and loss in the business and Laxmi Devi would have no further claim of profit excepting the said sum of Rs. 1,000 in respect of her three-fourth share in the business. The balance of the profit of the business will be appropriated by Naraindas Lakhumal whatever the amount may be. Laxmi Devi would not be liable for any loss if incurred in the business. (e) Only in case it is found that the business sustains loss continuously or intermittently for one year, Laxmi Devi would be liable to contribute to such loss to the extent of Rs. 500 in all for the total duration of the partnership. But such liability would not operate to exonerate Naraindas Lakhumal from his liability to pay to Laxmi Devi the aforesaid sum of Rs. 1,000 every month. (f) Laxmi Devi would have no interest in the stock-in-trade and assets of the business which might be brought in by Naraindas Lakhumal and not also in the goodwill of the firm name. "
(3.) Under the aforesaid deeds Rs. 7,500 and Rs. 12,000 were paid to the said Laxmi Devi during the assessment years 1966-67 and 1967-68, respectively, and were shown as payments on account of her fixed share of profits in the books of the assessee.;