Rajagopalan, J.- In the course of the assessment proceedings for the assessment year 1949-50 the amount of refund of income-tax to which the assessee was entitled was ascertained as Rs. 27,892-11-0. About a month later, on 23rd July, 1953, the assessee applied to the Income-tax Officer for the issue of a refund order. On 12th August, 1953, the Income-tax Officer informed the assessee that the refundable amount of Rs. 27,892-11-0 had been adjusted towards three items of arrears of income-tax; (1) Rs. 12,835-15-0, arrears due for 1940-41; (2) Rs. 7,800, arrears due for 1941-42; and (3) Rs. 7,256-12-0, part of the arrears due for 1947-48. The assessee pointed out that the first two items represented the proportionate tax on foreign income, the income from Kanthoe, for the relevant account periods corresponding to the assessment years 1940-41 and 1941-42, and that as the currency restrictions on remittances from Kanthoe continued, he was entitled to the relief under the Proviso to section 45 of the Act. On 12th November, 1953, the Income-tax Officer finally informed the assessee that the refundable amount would be adjusted towards the arrears of tax. The Inspecting Assistant Commission

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