M.A. Ansari, C.J.

1. This reference has been made on the application of the Commissioner of Income Tax under Section 66(1) of the Income Tax Act, herein referred to as the Act. The assessee has been doing business in Malabar produce, cloth, etc., in Kozhikode, and had for the assessment year 1945-46 submitted a return showing Rs. 7,960/- as losses. The assessment on him for the aforesaid year was, however, concluded on a total income of Rs. 8009/-. Seven years later the Income Tax Officer obtained information regarding large deposits having been made in the assessee's name in the Abdul Rehman Branch of the Central Bank of India Ltd., in Bombay, and, thereupon issued on March 18, 1954, the notice under Section 34 of the Act. It was served on the assessee's son on March 22, 1954, and the Income Tax Officer, treating the service insufficient, issued another notice, which was affixed in the business premises of the assessee, because he was said to be then in Bombay or Ceylon. Subsequently the assessee filed return and the re-assessment was concluded under Sections 23(3) and 34 of the Act, Rs. 61,036/- being then levied as the tax. One of the objections in the appeal before the A