Judgement

RAMASWAMI, J. : This appeal is brought, by special leave, form the judgment of the High Court of Andhra Pradesh, dated April 14, 1964 in Referred Case No. 46 of 1962.

2. The respondent, hereinafter called the "assessee" was a Hindu Undivided Family consisting of K. Ankineedu and his two sons. For the assessment year 1949-50 corresponding to the previous financial year ending March 31, 1949, the assessee submitted a return in response to a notice sent to him. The Income-tax Officer computed his total income as Rs, 2,429 only which was below the taxable limit to pay income-tax. Subsequent to the assessment, the Income-tax Officer had information that the assessee had done some business as procurement agent for the Government and in this business he had earned large profits which had escaped assessment. Accordingly he issued a notice under S. 34 of the Income-tax Act, 1922 (hereinafter called the Act ) on March 22, 1957. In response to the notice the assessee made a return on April 30, 1957. Prior to the issue of the above notice the Income-tax Officer had taken the view in the assessment made for the year 1954-55 that the correct status of the assessee was not Hindu Undivid