1. The assessee in this case is a Hindu undivided family dealing" in the business of mica, cloth, and grain. The assessment year is 1947-48. The accounting period of the mica business was the calendar year 1946 and for cloth and grain was the Diwali year 2002-2003 which corresponded to the period 19-11-1945 to 26-10-1946. The assessee had maintained his books of account for these businesses according to these accounting, years. The original assessment was made by the Income-Tax Officer on a sum of Rs. 5117 as total income derived by the assessee from property and from business The Income-tax Officer later on discovered that on 21-1-1946 the assessee had encashed high denomination notes to the extent of Rs. 22,000. A proceeding under Sec.34 was started against the assessee who was asked to explain the source of this amount. The assessee explained that the amount was a part of the cash balance of the business. This explanation was rejected and the Income-tax Officer assessed the whole amount of Rs. 22,000, as secreted profits of the assessee from the business. An appeal was preferred by the assessee to the Appellate Assistant Commissioner who allowed the appeal to the extent