Malik, CJ. :- This is a reference under S. 66 (1), Income tax Act, relating to the assessment for three years, viz., 1940-41, 1941-42 and 1942-43. The three questions referred to us are as follows :

"1. Whether in the circumstance of the case, the issue of a notice under S. 34 for the assessment year 1940-41 was valid in law?

2. Whether in the circumstances of the case the action taken under S. 34 was based on discovery of any definite information within the terms of S. 34 of the Act.?

3. Whether, in the circumstances of this case, the IV Additional Income-tax Officer, E. P. T. Circle, Kanpur, had authority to make assessment without issuing fresh notices under Ss. 22 (4) and 23 (2) of the Act?"

2. The first two questions refer to the assessment year 1940-41 only. The assessment in that year was made by Mr. H.L. Giddens, Income-tax Officer, Gorakhpur, on 12-8-1940.

3. In the assessment year 1939-40, the assessee had made a number of entries of fictitious deposits and had inflated the purchase price of raw material purchased by him. The Income-tax Officer had, therefore, rejected the asaessees accounts, had made enquiries to find out the actual profits made by the assessee and h