COMMR. INCOME TAX Vs. RAMCHANDRA RATHORE

JUDGEMENT

(1.) THIS is a reference by the Board of Revenue, Madhya Pradesh, under Section 23(1) of the C. P. and Berar Sales Tax Act 1947, hereinafter called the Act.

(2.) THE reference has arisen out of an order of assessment of Sales tax on the bidis of the value of Rs. 3,39,949/ - despatched by Ramchandra Rathore and Bros, of Sagar, the assessee -company, to one Kanhaiyalal Pradhan at Bareilly in Uttar Pradesh in the year ending 31st December 1949, The despatches were made in pursuance of an agreement executed on 1st April 1937 by the assessee -company on the one hand and the predecessor -in -title of Kanhaiyalal Pradhan on the other. The terms of the agreement are reproduced below : -

(3.) THE Board of Revenue following its decision in Abdul Rashid Vs. State (1952 N. L J. 346 held that the despatch in question constituted sales taxable under the Act. The question referred to this Court is the following