CHAKRAVARTTI, C. J.

( 1 ) THE facts of this Reference are a little unusual in that in making an assessment on the assessee, the Department seems to have proceeded by the method of trial and error.

( 2 ) IT appears that there are in the town of Howrah three houses, standing in the name of a lady, named Srimati Lila Devi. Those houses are premises Nos. 132, 133 andi 134, Netaji Subhas Road. On premises No. 132 stands a cinema-house called 'shyamasree Talkies' which is also in the name of the lady and which has been functioning since March, 1946. In February, 1948, Lila Devi voluntarily submitted a return of her income for the accounting year 1946-47 which, in her case, was the usual financial year. The return showed an income of Rs. 334-13-0 from property and Rs. 5,682-7-0 as income from the cinema business. The Income-tax Officer accepted the lady's figure as regards her income from property, but thought that the true income from the cinema business should be Rs. 11,500/- and not the amount shown by her. He did not, however, complete the assessment. He was about to do so when his mind appears to have been assailed by doubts as to whether the capital on which the business was being

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