K.SUBBA RAO, J.

(1) THIS appeal by certificate is preferred against the order of the High court of Judicature at Madras holding that a sum of Rs. 12,447.00 received by the respondent from the government during the accounting year 1950-51 was not assessable to tax for the assessment year 1951-52.

(2) GAJAPATHY Naidu, the respondent, was supplying provisions to the government Stanley Hospital. Royapuram, Madras. During the financial year April 1, 194 8/03/1949, he entered into a contract with the government for the supply of bread to the said hospital at the rate of Rs. 0-4-6 per lb. As the respondent was maintaining his accounts on mercantile basis, it is common case that the amount due from the government under the terms of the said contract was credited in the accounts of the respondent for that year. For the assessment year 1949-50 the Income-tax Officer assessed the respondent to income-tax on the basis of the accounts so made. It appears that some time after 31/03/1949, representations were made to the government for relieving the respondent from the loss sustained in the supply of bread to the hospital. The government by its order dated 24/11/1950, directed paym