BINOD MILLS COMPANY LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is a case stated under section 66(1) of the Indian Income-tax Act, 1922. Four questions have been referred to this court :

(2.) THE material facts in respect of question No. 1 as given in the statement of the case and the sample documents annexed thereto are as follows : THE assessee-company (hereinafter called the assessee) is a non-resident and carries on the manufacture of cloth in its mill at Ujjain, Gwalior State (now Madhya Pradesh). THE relevant assessment years are 1940-41 and 1943-44, the previous years being the calendar years are 1939 and 1942 respectively. THE assessee supplied goods to the Government under what is known as the tender system. Under this system the Government of India invited tenders from time to time for supplies required by it. On receipt thereof, the assessee, inter alia, submitted its offer to supply goods at certain rates quoted by it. THE material portion of the sample of the order which has been annexed to the statement of the case reads :

(3.) THE amount payable in respect of each consignment will be made on due proof of acceptance by the consignee.