Judgment

JAGNMOHAN REDDY, J. :- This is an appeal by certificate against the judgment of the High Court of Calcutta rendered on a reference under sub-s. (1) of Sec. 66 of the Indian Income-tax Act, 1922 (hereinafter referred to as the Act ). The assessee it appears, had filed voluntay returns of income for the assessment years 1955-56 to 1959-60 giving her address as 5/A Byack Street, Calcutta which was then within the jurisdiction of the Income-tax Officer J Ward, District 1 (1) Calcutta. The return for 1958-59 was dated 22nd August 1959 while the assessment for the other years were antedated. It also appears from the order sheet that the Income-tax Officer had directed issue of notices under Section 23 (2) in respect of the five years on 14th December 1959 which notices were purported to have been received personally by the authorised representative of the assessee on the same date. The cases were heard on 21st and 23rd Dec. 1959 and the assessment for these years was completed by the Income-tax Officer on 23rd December, 1959. It further appears from the records that the assessee had signed a declaration on 15th December, 1959 stating inter alia that:

(i) at the time of her marriage with Sri Ram Prasad Luharwala about 15 years ago, the assessee received presents and dowry and birth day presentations on different occasions in kind as well as in cash to the extent of Rs. 18,000/- and also a sufficient quantity of ornaments.

(ii) with this amount of cash, she started business of investment on interest and out of the interest on interest and out of the interest received she could save about Rs. 600/- after meeting her expenses up to March 1950;

(iii) the sum of money at her disposal in March 1950 was Rs. 13,500/- which had been shown as the initial capital for the accounting year 1950-51;

(iv) subsequently she started speculation business in shares in addition to the investment business and out of the income from this business she made the following investments and acquisition :

(A) Purchase of a piece of land on 14-8-1956 for Rs. 2,299/-;

(B) Investment of two sums of Rs. 50,000/- each on 26th November, 1957 adn 28th November, 1957 with M/s. Kaluram Prahledrai on interest;

(v) she sold some of her ornaments in the year 1955-56 for Rupees 30,600/- and the remainder of her ornaments in 1956-57 for Rs. 37,400/- and the certificates showing the sale of such ornaments were enclosed with declaration;

(vi) the assessee was doing the aforesaid business in her individual capacity and this business had no connection with the business of her husband;

(vii) she kept no regular books of account and neither had she any bank account.

The Income-tax Officer, J-Ward District I (I) Calcutta who made the assessment for the years 1955-56 to 1959-60 accepted the initial capital and the fact that the assessee had been carrying on money lending and speculation business. He made an addition of Rupees 1,000/- to the disclosed income of Rs. 4,300/- and made an assessment on a total income of Rs. 5,300/- for the assessment year 1955-56. Similar short stereo-typed assessment orders were made for each of the years 1955-56 to 1959-60, the income assessed for these years being Rupees 5,500/-, Rs. 6,000/-, Rupees 6,900/- and Rupees 7,500/- respectively.

2. For the assessment year 1960-61 also a voluntary return dated July 6, 1960 was received by the Incom-tax Officer on July 20, 1960 and on November 30, 1960 the Income-tax Officer directed the issue of a notice under Section 23 (2) fixing the date of hearing on February 25, 1961. Thereafter by her letter dated March 13, 1961 the assessee informed the Income-tax Officer that her place of business had been shifted to No. 1, Gunsala Road, Lillooah Howrah and on the basis of this letter the assessee s file was transferred to the Income-tax Officer D Ward, Howrah. On July 2, 1961 the Income-tax Officer Howrah again issued notice under Section 23 (2) of the Act fixing the hearing on July 10, 1961. This notice was also rec