PUBLIC LAWS-CH. 619-OCT. 21, 1942 Adjustment. 53 Stat. 119. 26U.S.C.§§800- 951; Supp. I, §§812-951. Post, pp. 941-951. 53 Stat. 26. 2tU.S.C.§ 47(c). revenue law shall not apply to the refund of any such overpayment. If the application of this subsection to the taxable period of the decendent in which falls the date of his death results in a deficiency for such taxable period, and if the income tax of the decedent for such period was deducted in computing the net estate of the decedent under Chapter 3 of the Internal Revenue Code or under a correspond- ing title of a prior revenue law, and if at the time such deficiency is assessed credit or refund of any resulting overpayment in respect of the taxes imposed by such Chapter 3 or corresponding title upon such net estate is prevented by any provision of the internal revenue laws or by any rule of law, then the amount of such deficiency which is assessed and collected shall be reduced by the amount of such result- ing overpayment under such Chapter 3 or corresponding title which would be credited or refunded if credit or refund thereof were not so prevented. This subsection shall not be deemed to change any pro- vision of law limiting the allowance of refund or credit with respect to overpayments for the taxable period of the decedent in which falls the date of his death, and no interest shall be allowed or paid with respect to any overpayment resulting from the application of this subsection to such taxable period. If the application of this sub- section to the taxable period of the decedent in which falls the date of his death results in an overpayment for such taxable period, and if such overpayment was included as part of the income tax of the decedent which was deducted in computing the net estate of the decedent under Chapter 3 of the Internal Revenue Code or under a corresponding title of a prior revenue law, and if, at the time such overpayment is credited or refunded the assessment and collection of deficiencies in respect of the taxes imposed by such Chapter 3 or corresponding title upon such net estate is prevented by any provision of the internal revenue laws or by any rule of law, then the amount of such overpayment which is credited or refunded shall be reduced by the amount of the resulting deficiencies under such Chapter 3 or corresponding title which would be assessable if the assessment and collection thereof were not so prevented. SEC. 135 . RETURNS FOR A PERIOD OF LESS THAN TWELVE MONTHS. (a) INCOME PLACED ON AN ANNUAL BAsIs.- Section 47 (c) is amended to read as follows: "(c) INCOME PLACED ON ANNUAL BASIS.- "(1) GENERAL RULE. -If a separate return is made under sub- section (a) on account of a change in the accounting period, the net income, computed on the basis of the period for which sepa- rate return is made (referred to in this subsection as 'the short period'), shall be placed on an annual basis by multiplying the amount thereof by twelve, and dividing by the number of months in the short period. The tax shall be such part of the tax com- puted on such annual basis as the number of months in the short period is of twelve months. "(2) EXCEPIION.- I f the taxpayer establishes the amount of his net income for the period of twelve months beginning with the first day of the short period, computed as if such twelve-month period were a taxable year, under the law applicable to such year, then the tax for the short period shall be reduced to an amount which is such part of the tax computed on the net income for such twelve-month period as the net income computed on the basis of the short period is of the net income for the twelve- month period. The taxpayer (other than a taxpayer to which 834 [56 STAT.
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