Tek Chand, J.

1. The main facts leading to this reference are that the assessee carried on business at Amritsar, in speculation dealings, besides, deriving income from rent and interest. For the accounting year 1938-1939, corresponding to the assessment year 1939-40, an assessment was made on a total income of Rs. 4,006/- including Rs. 2,500/- under the head business. The Income-tax Officer, Amritsar, after issuing notice, as required under Section 34 of the Income-tax Act, determined the income at Rs. 7,006/-. This assessment was set aside on appeal and fresh notices under Sections 22(2) and 34 of the Indian Income-tax Act were served on the assessee, and the proceedings that followed resulted in the income being computed at Rs. 41,833/-. This was followed by an appeal to the Appellate Assistant Commissioner, who, by his order dated 11-3-1846, rejected it. This order was challenged in appeal before the Appellate Tribunal, which, by its order dated 7-8-1950, determined the assessable income at Rs. 21,814/- as against Rs. 41,833/-. The relevant paragraph from the order of the Tribunal reads as under:

"So far as the assessment for 1939-40 is concerned, the notice under Sectio