JUDGMENT - Desai, J.

1. The question raised on this reference relates to the validity of the assessment made on a firm, which had dissolved and discontinued it business, in respect of its pre-dissolution income, for the assessment year 1952-53, for which the relevant accounting year was S. Y. 2007 ended on 30th October, 1951. The original assessment of the assessee-firm was completed on the 8th November, 1952. The firm, which consisted of the father and his three sons, was dissolved and its business was discontinued as and from the last day of the said accounting year, viz., 30th October, 1951, and the Income-tax Officer, who had made the original assessment, was aware of the said position when he made the aid assessment. Subsequently, on the basis of the information received by the Income-tax Officer, he had reason to believe that certain income of the firm had escaped assessment and he consequently decided to take action under section 34 of the Act. The first notices was given under section 34(1) (a), in response to which the assessee submitted a return but no assessment was made on the basis of the said notice. Subsequently, another notice under section 34(1) (b) was served on t

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