SANKAR PRASAD MITRA, J.

( 1 ) THIS is a reference under Section 66 (1) of the Indian Income-tax Act, 1922. The assessment year is 1960-61. The corresponding accounting year is the calendar year is 1959. On the 13th June, 1960, a notice under Section 22 (2) dated the 1st June, 1960, was served on the assessee. In terms of this notice the assessee's return should have been filed by the 18th July, 1960. But, on that date, the assessee asked for two months' time to file its return. The Income-tax Officer allowed the extension but informed the assessee that there would be no further extensions. On the 16th January, 1961, the assessee was served with a notice under Section 23 (3 ). Then, on the 17th January, 1961, the assessee filed its return for the assessment year 1960-61. The Income-tax Officer, however, took more than two years to complete the assessment. The assessment was made on October 31, 1962, after the commencement of the Income-tax Act, 1961. Under the provisions of Section 297 (2) (g) of the 1961 Act the proceedings for imposition of penalty had to be initiated and completed (sic ). That is why the assessee was served with a fresh notice under Section 274 (1) of the 1961 A

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