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JUDGMENT Shelat, CJ.-T his reference arises out of reassessment proceedings under section 34(1)(a) of the Income-tax Act, 1922, of a Hindu undivided family carrying on business in motor spare parts and cigarettes. The proceedings were in respect of the assessment year 1953-1954 of which the corresponding year of account was Samvat year 2008. The original assessment for the assessment year 1953-54 was completed on August 2, 1957, the total income then assessed being Rs. 14,868 consisting of profits and income from business, interest and property. On an appeal by the assessee, the Appellate Assistant Commissioner by his order datedJanuary 31, 1958, reduced it to Rs. 14,420. It is an admitted fact that the assessee had produced the books of account pertaining to both the businesses, but had not produced along with those books the balance-sheets. At a later date, which is not quite clear from the statement of the case, the Income-tax Officer learnt that an amount of Rs. 21,352 was lying deposited with the Morvi Mercantile Bank Ltd., Morvi, in the name of the assessee. The Income-tax Officer, therefore, decided to initiate proceedings under section 34(1)(a) and sought permission therefor from the Commissioner of Income-tax. The permission was sought for on the ground that: "The assessee deposited the amount of Rs. 21,352 in Morvi Mercantile Bank Ltd., Morvi, in Samvat year 2008. The assessee has not been able to prove satisfactorily the source of this deposit. Hence, action under section 34(1)(a) is proposed to tax this amount which has escaped assessment." It is clear according to the Income-tax Officer that the deposit of Rs. 21,352 was made in Samvat year 2008, the relevant account year, that that amount had escaped assessment, and that the case fell under clause (a) of section 34(1). It would also seem from the application by the Income-tax Officer that he asked for an explanation but that the explanation given by the assessee was not satisfactory to the Income-tax Officer. On these averments, the Commissioner granted permission by his order dated February 20, 1962, and thereupon the Income-tax Officer issued a notice on February 22, 1962, which was served on…

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