( 1 ) THE assessee at whose instance this Reference under Section 66 (1) of the Income-tax Act has been made is a firm. In maintaining its accounts, it observes the calendar year. Admittedly during the year 1945, the assessee earned a taxable income, but it did not file any return in response to the general notice issued under Section 22 (1) of the Act, nor did the Income-tax Officer issue any notice to the assessee under Section 22 (2 ). By the time he discovered the omission, the assessment year which was the year 1946-47 had already expired. At that stage, therefore, he could issue a notice only under Section 34 of the Act and he did so on 23-8-1948. As Section 34 stood at that time no sanction of the Commissioner for the issue of a notice under the section was required and consequently none was obtained.

( 2 ) IT appears that the assessee did not file a return in compliance with the notice. Instead a partner appeared before the Income-tax Officer on 8-11-1948, and asked for time till the end of January. 1949, on the ground that the books of the business for the relevant year had not yet been closed. The Income-tax Officer was not prepared to allow the time