JACKSON (INSPECTOR OF TAXES) v. BRITISH MEXICAN PETROLEUM COMPANY, LTD.

(1932) 43 Ll L Rep 31

HOUSE OF LORDS.

Before Viscount Dunedin, Lord Atkin, Lord Warrington of Clyffe, Lord Thankerton and Lord Macmillan.

Revenue - Income tax - Assessment - Computation of respondents' profits and gains - Debt owing to H company - Admitted liability - Agreement between parties by which part of debt released by H company - Whether account should be re-opened and amount released be applied to reduce the debit items in the trading account or whether amount should appear as a credit item for the year of release - Held, that, as the amount of liability was correctly stated as finally agreed and the subsequent release proceeded on the footing of the correctness of that statement, there was no right to re-open the account; nor could the release from liability, which liability was finally dealt with in the preceding account, form a trading receipt in the account for the year of release - Appeal by Crown dismissed.