Judgement

Petitions for special leave to appeal from two orders of the High Court (January 6 and 12, 1926) made upon two cases stated by the Commissioner of Income Tax under s. 66, subs. 2, of the Indian Income Tax Act (Act XI. of 1922), upon applications by the petitioners.

One petition related to an assessment dated June 12, 1923, for income tax for the year 1922-3, which assessment provided for the recovery of additional income tax for the year 1921-2 by way of adjustment under s. 19 of the Indian Income Tax Act, 1918. The petitioners contention was that the adjustment was barred by s. 34 of the Act of 1918.

The other petition related to an assessment dated March 23, 1924, for the year 1923-4, so far as it included a sum of Rs. 1,00,000, which the petitioners had carried to their profit and loss account for the year 1922 from a reserve account created out of profits for the year 1918. The petitioners contended that the sum of Rs.1,00,000 should have been assessed for the year in which it was received, and that the present assessment in respect of it was barred by s. 34 and s. 35, sub-s.1, of the Act of 1922.

The High Court (Le Rossignol and Martineau JJ.) had rejected the conten