This reference under section 66 (1) of the Indian Income Tax Act has clearly to be answered against the assessee and in favour of the department.

The assessee was a tanning expert. For the previous year ended 31st March, 1947 (the assessment year 1947-48) he filed a return on 21st February, 1951 estimating his profits from business at Rs. 550. This return was filed admittedly without a notice under section 22 (2) having been issued to the assessee. The income as set out in the return was scrutinsed after enquiry and the Income Tax Officer rejected the return and estimated the assessee’s income at Rs. 30,000. We are not now concerned with the correctness of the quantum of the assessment but only with its legality. From the order of assessment the assessee filed an appeal to the Appellate Assistant Commissioner and there urged that the assessment was illegal and invalid. The ground for this contention was that as the return that he had filed declared an income below the taxable limit it was not a “ return” within the meaning of the Income Tax Act, and that proceedings could have been taken against him only by invoking the provisions of section 22 (2) read with section 34 and t