Ambrose J:

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 12 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. 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 8 December 1948 the Comptroller served a notice of assessment dated 8 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 23 December 1954 the Comptroller served a notice of additional assessment dated 22 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 23 July 1957 the defendant appealed to the Board of Review against the additional assessment. On 27 February 1958 the Board found that on 31 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 16 August 1958, served a notice of amended assessment dated 9 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 21 August 1958 the defendant appealed to the Board of Review against the amended assessment. In January and February 1959, Mr. O, Assistant Comptroller of Income Tax, in accordance with the standard practice of the Income Tax Department, invited the defendant's 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 20 February 1959, at which a certain measure of agreement was reached. On 4 March 1959, it was agreed between Mr. O. and the defendant's solicitor that the defendant's 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 defendant's tax liability for later years. On 1 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 8 December 1948, it was final and conclusive under s. 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 9 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 this Part against an assessment as regards the amount of the chargeable income assessed thereby, or where the amount of the chargeable income has been agreed to u