Ramaswami, J.

1. In this case the assessment year is 1947-48 and the accounting year is the financial year ending with 31-3-1947. On 1-3-1947 the assessee was ap-pointed as a grain stockist at Begusarai. The assessee carried on the grain business till December, 1947. He maintained account books which showed that for the period from March to December, 1947 the income from the grain business was Rs. 1,833. On 12-3-1947 the Commissioner of Excise had granted two permits for molasses in the name of the assessee. One permit was for 1400 maunds from Hussainpur Sugar Mills and the other permit was for 4000 maunds from Sasamusa Sugar works. The Income-tax Officer learnt this fact in consequence of the statement made by the Minister of Revenue in the Bihar Legislative Assembly on 13-10-1947. The Minister disclosed in the course of his statement that per-sons to whom molasses permits had been given had made huge profits. The Income-tax Officer issued a notice upon the assessee under Sec.22(2), Income-tax Act. The Income-tax Officer also issued a notice under Sec.22(4) of the Act requiring the assessee to produce all the accounts maintained for its business. The assessee did not compl