( 1 ) IN this combined reference under Section 66 (1) of the Indian Income-tax Act, 1922, and Section 256 (1) of the Income-tax Act, 1961, we are concerned with the assessment years 1961-62 and 1962-63. It appears that for the assessment year 1961-62 the income returned was Rs. 2,684. The income that was assessed to tax, however, amounted to Rs. 4,524. For the assessment year 1962-63 the income returned by the assessee was Rs. 12,655, but the income assessed to tax was Rs. 23,034. It appears that the income was assessed at higher figures than the income returned because a sum of Rs. 7,500 in the first year arid a sum of Rs. 9,000 in the second year had been added to the profits disclosed as per books by the assessee on an estimate of the profits made under the proviso to Section 13 of the Indian Income-tax Act, 1922, in respect of the assessment year 1961-62 and under Section 145 of the Income-tax Act, 1961, in respect of the assessment year 1962-63. It appears that the said additions had been made because the assessee which was manufacturing hosiery articles did not have any register for the consumption of the yarn which was the raw material for manufactur