Judgment

KHANNA, J.:- This appeal on certificate is directed against the judgment of the Calcutta High Court whereby that court answered the following question referred to it under Section 66 (1) of the Indian Income-tax Act, 1922 against the assessee-appellant and in favour of the revenue:

Whether, on the facts and in the circumstances of the case, the sum of Rs. 7,14,398/- was liable to be included in the total income of the assessee under the Indian Income-tax Act, 1922?"

2. The matter relates to the assessment year 19.53-54, the corresponding accounting period for which ended on June 30, 1952. The assessee is a limited company with its head office at Calcutta. One of its activities was the purchase and stale of jute in the State of Orissa and for this purpose the assessee was a registered dealer- under the Orissa Sales Tax Act, 1947. During the accounting year the assessee sold jute to M/s. Mcleod and Co. Ltd. for being used in two jute mills situated in Andhra Pradesh under the management of the purchaser company. The assessee used to charge from the purchaser sales tax on the purchase of goods at the rate of one anna per rupee of the value of the goods. The sales tax was charged