Property income after partnership dissolution was excluded from assessment because the asset character of the Hindu undivided family partner did not change.

On dissolution of the partnership, the character of the Hindu undivided family partner's assets remained unchanged, so the income from Amritsar Cotton Mills could not be brought to tax in the assessee's hands on the Revenue's footing. The reference was answered by following the earlier decision in the connected matter, and the property income was held to be excluded from assessment for the relevant years.

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Issues: Whether the income from the property known as Amritsar Cotton Mills was liable to be excluded from the assessee's assessment for the relevant assessment years.

Analysis: The reference was answered on the basis of the earlier decision in the connected matter. It was held that on dissolution of the partnership there was no change in the character of the assets of the Hindu undivided family partner, and the property income could not be treated as assessable in the assessee's hands on the footing contended by the Revenue.

Conclusion: The question was answered in favour of the assessee, and the income from the property was to be excluded from the assessment.

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