Vokal

Paul F. Vokal and his wife Freda M. Vokal (by virtue of the Community Property Laws of the State of California) owned and operated a tool and machinery business in Los Angeles, California. During 1943 they manufactured certain tools and machinery under government contracts and subcontracts. On December 19, 1944 they entered into a formal renegotiation agreement with the War Contracts Price Adjustment Board, pursuant to the Renegotiation Act 1 , by virtue of which it was deter *621 mined and agreed that $38,442.26 of the profits received or accrued by the Vokals under contracts or subcontracts during 1943 should be eliminated, and that this amount, less tax credits, if any, would be paid by the Vokals to the Treasurer of the United States. On July 13, 1945, $11,136 of this amount was paid under protest, but no further payments were made. Thereafter the Secretary of War, pursuant to subsection (c) (2) (C) of the Act, directed certain prime contractors to withhold for the account of the United States certain amounts •otherwise due Vokal. The aggregate of the amounts so withheld equals the amount due under the renegotiation agreement (plus interest) less the amount paid, as above…