Cullinan

This is an appeal from a judgment in favo respondent, Franchise Tax Commissioner of the State of fornia, upon his demurrer to plaintiffs’ complaint, the murrer having been sustained without leave to amend.

Each of the five counts of the complaint alleges gen-'1 erally that plaintiffs kept their records and reported their income on a cash receipts and disbursements basis. Additionally, each of the counts alleges that for the calendar years 1936-37-39-40 and 41 respectively, the plaintiffs as executors of the estate of Mathew I. Sullivan filed a return with the respondent comnajlsioner in accordance with the Personal Income Tax Act of\L935 [Stats. 1935, p. 1090; 3 Deering’s Gen. Laws, Act 84£Í], and the regulations of the commissioner as set forth in Article 36-1 thereof, which article provides:

“Art. 36-1. Cash Receipts and Disbursements Basis-Accruals Before 1935. Ordinarily, a taxpayer reporting on the cash receipts and disbursements basis must report all income received during his taxable year even though accrued in a prior year and may deduct all amounts paid during such year, even though incurred in a prior year. However, income accrued prior to January 1, 1935 is not…