( 1 ) THESE are references under Section 66 (1) of the Indian Income-tax Act, 1922 (to be hereinafter referred to as the Act ). A common question of law is referred to this Court in these cases by the Income-tax Appellate Tribunal (Delhi Bench) and that question is:

"whether on the facts and in the circumstances of the case, action under Section 34 (1) (b) could be initiated in the case of a shareholder by serving on him a notice under the said Section even before an order under Section 23a (1) of the Act is. passed in the assessment of the Company?"

( 2 ) THE assessees in these cases are shareholders in M/s. Uttam Singh Dugal and Co. (Private) Limited, New Delhi. The assessment year. with which we are concerned in this case is 1954-55, the account-period being the year ending March 31, 1954. The I. T. 0. initiated proceedings under S. 23a of the Act against M/s. Uttam Singh Dugal and Co. as per his notices dated March 8,1957 But an order under that section wax passed only on January 20, 1960. Even before that order was made he initiated proceedings against the assessees by issuing notices under Section 34 (1) (b) on March 20. 1959. On the basis of those notices, assessment orders

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