This appeal is brought from a judgment of the High Court of Judicature at Lahore dated 23rd March, 1944 which was delivered on a reference made by the Commissioner of Income-tax, West Punjab, N.W.F. and Delhi Provinces under section 66(3), Income-tax Act (XI of 1922) pursuant to a mandamus issued by the same Court on 3rd April, 1941. The appeal raises somewhat complicated questions of procedural and substantive law and it is necessary to state the facts at some length. The respondents, the Tribune Trust, which will generally be referred to as “the respondents”, was created by one Sardar Dayal Singh in the year 1898 and it appears to have been assessed to, and to have paid, incometax on the income profits or gains of its property, from the year 1917-18 to the year 1931-32. But in respect of its assessment for the year 1932-33 it raised an objection on the ground that it was exempt from taxation by virtue of section 4(3)(i), Income-tax Act already mentioned, which provides,

“This Act shall not apply to the following classes of income:- (i) any income derived from property held under trust or other legal obligation wholly for religious or charitable purposes.....”

This claim led to a reference to the High Court of Judicature at Lahore under section 66 of the Act. That Court, on 4th June, 1935, held, contrary to the contention of the respondent that its income was not exempt from tax. The respondent appealed to His Majesty in Council, and this Board, after referring the matter back to the Commissioner for further findings of fact, on 13th June, 1939, reversed the judgment of the High Court and held that the income, in respect of which the respondent had been assessed for the year in question, was exempt from tax. Their Lordships’ decision is reported in Tribune Press Trustees, Lahore v. Income-tax Commissioner1.

The assessments of the respondent’s income for the years subsequent to 1932-33 were held in abeyance pending the judgment of the High Court in the matter of the assessment for that year, but after its judgment in June, 1935. assessments were completed in accordance therewith and payments were duly made by the respondent in respect of the assessments for the years 1933-34, 1934-35, 1935-36, 1936-37, 1937-38, 1938-39, and also in respect of supplementary assessments for the years 1931-32 and 1936-37.

The history of these assessments is briefly as follows:-

1931-32.- A supplementary assessment was made under section 23(4) read with section 34 of the Act on 14th November, 1936. An appeal to the Assistant Commissioner was dismissed as no appeal from an order under section 23(4) was then competent, and an application to the Commissioner under section 33 was also rejected.

1933-34 and 1934-35.- Orders of assessment were passed under section 23(3) on 4th of September, 1935. The respondent appealed to the Assistant Commissioner under section 31 and its appeals were rejected on 31st August, 1936. No further action was taken by the respondent.

1935-36.- The assessment was made under section 23(3) on 27th January, 1936. No appeal was filed.

1936-37.- The assessment was made under section 23(3) on 11th November, 1937. An appeal was rejected by the Assistant Commissioner on 14th May, 1938. No further action was taken by the respondent.

1937-38.- The assessment was made under section 23(3) on 26th January, 1938. No appeal was filed.

1938-39.- The assessment was made under section 23(3) on 26th October, 1938. No appeal was filed.

The relevant dates of the different stages of these assessments are tabulated below:-

Assessment year Date of Assessment Order Date of payment Appellate order dismissing appeal

1931-32 supplementary 24 — 11 — 36 22 — 1 — 37 22 — 7 — 37

1933-34 ... 4 — 9 — 35 21 — 10 — 35 31 — 8 — 36

1934-35 ... 4 — 9 — 35 21 — 10 — 35 31 — 8 — 36

1935-36 ... 27 — 11 — 36 4 — 1 — 37 ...

1936-37 ... 11 — 9 — 37 4 — 10 — 37 14 — 5 — 38

1936-37 supplementary 26 — 10 — 38 8 — 12 — 38 ...

1937-38 ... 26 — 1 — 38 26 — 3 — 38 ...

1938-