FATAYI-WILLIAMS, JSC (DELIVERING THE LEADING JUDGMENT): Mobil Oil (Nigeria) Ltd., which will hereafter be referred to as the appellants, were assessed for and have paid tax and super tax for the year 1968/69 and 1969/70 inclusive. Later, by a letter dated 16th June, 1970, the Principal Inspector of Taxes decided to make additional assessment on the appellants by acting or purporting to act under Section 30A of the Companies Income Tax Act, 1961, and computing the tax payable by the appellants on 15% of what it described as "turnover as per accounts" submitted by Messrs. Peat, Marwick, Cassleton Elliot and Co., the auditors of the appellants. After further communications and correspondence between the parties, the assessment was reduced to 10% of "turnover as per accounts".
The appellants were dissatisfied with these additional assessments and objected to them. Upon the Federal Board of Inland Revenue refusing to review the assessments, the appellants appealed to the Body of Appeal Com…