G.K. MITTER, J.

1. THE question referred to this Court under s. 66(1) of the Indian IT Act is :

"Whether on the facts and in the circumstances of the case, the ITO was justified in including the income from undisclosed sources in the reassessment for the year 1946-47 ?"

The facts are as follows :

2. THE assessee was a member of an HUF until October, 1944. By a deed of partition the assessee separated from his brothers and this deed which purported to give the entire family holding was accepted by the Revenue authorities. After the partition the first assessment year of the assessee was the year 1946-47. He did not produce any account books nor did he specify any mode of accounting but claimed to go by the Dewali year. The Dewali year 2002 ended some time in November, 1945. The assessee was assessed to an income of Rs. 2,800 in his business of broking and another sum of Rs, 2,000 from "other sources" because of the fact that he had encashed two one thousand rupee notes for the possession of which he failed to give any satisfactory explanation. This assessment was made on 22nd March, 1949. Thereafter the ITO came to know that the assessee held a money- lender's licence and had