Walter Salis Schwabe, K.C., C.J.

1. This reference, under Section 51 of the Income Tax Act and Section 6 of the Super Tax Act now in force, is as to "whether an adjustment can be made during a financial year in which the Collectors certificate of Registration under Section 12A is in force in respect of the income of a firm for the previous year in which the Firm was not registered." In my judgment it clearly can. The whole scheme of income tax and super-tax in this country is based on the principle that the tax is assessed at the beginning of the year on an anticipated income and is paid in anticipation on the assessment; but when the year is over and the actual earnings have been discovered, there is not a fresh assessment but an adjustment. As far as super tax is concerned a registered firm is exempt from supertax as a firm, although the partners are personally liable for super-tax, if their separate incomes are large enough to bring the provisions of the Super-tax Act into operation against them.

2. In the year 1920-21 this firm of Messrs Muhammad Sheriff Hussain Meah Sahib and Company, through carelessness or for some other reason which I am not able to appreciate, having