For the year 1950-51 again there was no reference and Bros. to the Bangkok branch in the return and a similar v. estimate was made for this year also. For the year Commissioner of 1951-52 also the Bangkok business profits were not Income-tax shown but on January 11, 1952, the Income-tax Bombay' Ofhcer issued a notice to the assessee under s. 22( 4) of the Act to produce the profits and loss account Sarkar J. and balance-sheet with the relevant books. The assessee excused itself by alleging on January 29, 1952 that the books were at Bangkok and the profit and loss account and the balance-sheet could not be drawn up unless its partner, Hatimbhai A. Malbary, went there personally and there was no certainty as to when he would go there and promising that in the following year these accounts for the calendar year 1950 would be produced. Thereupon the Income-tax Officer made an estimate of the sales of the Bangkok branch at Rs. 7,50,000 and of the net profits at 5 % thereon, amounting to Rs. 37, 500i-. This assessment was made on January 31, 1952. On the same day he issued a notice under s. 28(3) of the Act requiring the assessee to show cause why a penalty under s. 28(1)(c) for concealment of the particulars of the income of 1950 should not be levied. The assessee was heard on this notice and on January 22, 1954, the Income-tax Officer imposed a penalty of Rs. 20,000 on it as its explanation was not acceptable. In the meantime assessment proceedings for the year 1952-53 had commenced and this year also the assessee adopted a similar attitude as in the previous years. The Income-tax Ofhcer was however insistent and, therefore, after various adjournments, the assessee had on August 17, 1953 to produce the accounts and books of the Bangkok branch. It appeared from these books that in the calendar year 1950 the assessee had made a profit of Rs. 1,25,520/-. The Income-tax Officer thereupon commenced proceedings under s. 34 of the Act against the assessee in respect of the assessment year 1951-52 and gave
