G.K.MITTER, J.

1. THE question referred under s. 66(1) of the Act is :

"Whether, on the facts and in the circumstances of the case, assessment under s. 34(1)(a) of the Indian IT Act was in accordance with law ?"

2. THE facts discovered from the statement of the case are as follows : THE assessee is an individual doing business in stationery. THE assessment year in question is 1946-47, the financial year ending on 31st March, 1946. A notice under s. 22(2) of the Act was issued to the assessee on 27th Aug., 1946. He filed his return on 11th Feb., 1949, showing an income of Rs. 17,457. A provisional assessment was made on the basis of this return on 16th Feb., 1949. THEreafter, the ITO found that the assessee had done some business in stationery not disclosed in the return. He issued a notice under s. 28(1)(c) of the Act for the levy of penalty on 21st Feb., 1952. THE assessee came forward with a disclosure under the voluntary disclosure scheme in March, 1952. On the basis of this disclosure an assessment was made on an amount of Rs. 49,091. THE ITO thereafter came to know that the assessee had encashed high denomination notes worth Rs. 18,000 after the ordinance of January, 19