Lord Uthwatt.-

This is an appeal by special leave by The Producers Co operative Distributing Society, Ltd., from a judgment of the High Court of - Australia dated 11 - 12 - 1944, affirming a judgment of the Full Court of the Supreme Court of New South Wales dated 4 - 10 - 1944. That judgment upheld a decision dated 10 - 5 - 1944, of the Board of Appeal constituted by the New South Wales Income tax Management Act, 1941, which disallowed the appellant's claim to exemption from income - tax under S. 19 (o), Income - tax Management Act, 1941, of New South Wales. The point raised has a considerable practical importance. It is also one of some difficulty as appears from the fact that Jordan C. J., in the Full Court and Rich and Starke JJ. in the High Court expressed dissenting opinions.

2. The appellant is a rural society registered as such under the Co - operation Act, 1923 - 1941, of the State of New South Wales. Its members are some 9500 in number. Most of the members are individual farmers but nearly 100 Co - operative Societies registered under the Act are also members. The business of the appellant consists in the sale on commission of butter, bacon and other like commodities. Its pr