This was a claim for balance of income tax in respect of the years of assessment 1951, 1952 and 1953 and penalties amounting to $ 457,011.87. On the 12th February, 1960, judgment was given for the Comptroller of Income Tax for$ 446,505.87, which the defendant admitted to be due: and leave to defend was given as to the residue amounting to $ 10,506.00. The sole issue was whether the defendant was entitled to be credited by the Comptroller with two sums of$ 5,252.80 each, which were paid by the defendant in respect of the years of assessment 1948 and 1949 respectively, on the ground that the defendant and Mr. O., Assistant Comptroller of Income Tax, subsequently agreed that no tax was payable by the defendant in respect of those years and that the two sums should, therefore, be credited to the defendant.

First, I will deal with the amount paid in respect of the year of assessment 1948. The relevant facts are as follows. On or about the 8th December, 1948, the Comptroller served a notice of assessment dated the 8th December, 1948, on the defendant in respect of 1948, assessing the income tax payable by him at $ 5,392.48. This amount was paid without any objection or appeal being lodged against the assessment. Subsequently a sum of $ 139.68 was refunded, and thus the tax actually payable and paid in respect of 1948 was$ 5,252.80. On the 23rd December, 1954, the Comptroller served a notice of additional assessment dated the 22nd December, 1954, on the defendant in respect of 1948, assessing the additional tax payable by him at $ 61,052.20. The defendant objected to the additional assessment, but the Comptroller refused to amend it. On the 23rd July, 1957, the defendant appealed to the Board of Review against the additional assessment. On the 27th February, 1958, the Board found that on the 31st December, 1947, the defendant had approximately $ 500.000 in certain safes at Beach Road and Marine Parade, Singapore, and directed that the additional assessment be revised accordingly. In accordance with this direction, the Comptroller, on the 16th August, 1958, served a notice of amended assessment dated the 9th July, 1958, on the defendant, combining the original and additional assessments and reducing the total tax payable in respect of the year of assessment 1948 to $ 30,299.90. The defendant objected to the amended assessment but the Comptroller refused to amend it. On the 21st August, 1958, the defendant appealed to the Board of Review against the amended assessment. In January and February, 1959, Mr. 0., Assistant Comptroller of Income Tax, in accordance with the standard practice of the Income Tax Department, invited the defendants solicitor to a conference to explore the possibility of agreeing facts, assessments or computations, with a view to saving time at the hearing of the appeal. A meeting was held accordingly on the 20th February, 1959, at which a certain measure of agreement was reached. On the 4th March, 1959, it was agreed between Mr. O. and the defendants solicitor that the defendants chargeable income in respect of the year of assessment 1948 was nil; that no income tax was payable in respect of that year; and that the income tax for 1948 should be allowed as a credit against the defendants tax liability for later years. On the 1st May, 1959, the Board annulled the amended assessment, after considering the arguments and the evidence and the matters agreed between the parties.

It was contended by counsel for the Comptroller that as no appeal was lodged against the original assessment dated the 8th December, 1948, it was final and conclusive under section 84 of the Ordinance; and that, therefore, the Comptroller had no power to re-open the original assessment in the notice of amended assessment of the 9th July, 1958. Section 84 reads as follows:--

"Except as expressly provided in this Ordinance, where no valid

objection or appeal has been lodged within the time

limited by t