Case: Budhram Kashiram  Vs. State Of Bihar

t is a registered dealer under the Act. The assessments with which we are concerned in these cases relate to the periods November 2, 1956, to March 31, 1957,8 and. The assessee was assessed to tax for the first two periods on September 20, 1957, and June 19, 1958, respectively. Subsequently on June 24, 1959, some of its books were seized and on the basis of the information got from those books, reassessment proceedings commenced for the periods it was assessed. At the same time assessment proceedings for the period9 were taken against it. In all those proceedings the assessee claimed deduction from its taxable turnover, the turnover relating to its sales to registered dealers. This it claimed under the explanation to section 5 of the Act. The assessing authority rejected its contention holding that as those sales did not comply with the requirements of rule 18 of the Rules framed under the Act, the assessee was not entitled to the deduction claimed by it.

Court's reasoning:
As mentioned earlier the assessees application under section 25(2) of the Act was summarily dismissed by the High Court.There can be hardly any doubt that the question whether the assessee is entitled to deduct under the provisions of the Act from his total turnover, the turnover relating to the sales to the registered dealers is a question of law. But the High Court before deciding that question, may have to decide whether the decision on that question is barred in view of the decision of the Board of Revenue referred to earlier. The question of law formulated by the assessee is broad enough to include that question also. But, if the High Court so decides it can split the question into two questions, i.e., (1) whether in view of the decision of the Board of Revenue in the revision petition filed by the assessee, it is open to the assessee to claim the deduction asked for and (2) if that decision does not bar the assessees plea, is the assessee in law entitled to claim the deduction in question.