Ramaswami, J.

1. This case is stated by the Board of Revenue under Sec.25(1), Bihar Sales Tax Act (Act 19 of 1947).

2. The assessee is an incorporated company called Messrs. Rameshwar Jute Mills Limited of Muktapur in the District of Darbhanga. Assessment was made by the authorities under Sec.13(2) (b), Sales Tax Act for the five quarters ending 31-9-1947, 31-12-1947, 31-3-1948, 30-6-1948 and 30-9-1948. For these five quarters the taxable turnover was determined to be Rs. 9,21,043, Rs. 9,39,910, 12,09,864/12/-, Rs. 6,58,752 and Rs. 6,92,895.

3. The assessee claimed deduction in respect of two matters. In the first place, he claimed certain, amounts shown as the price of loom hours which, were sold by the assessee to different parties, the amount of the sale price being credited in the account books of the assessee. It appears that the Indian Jute Mills Association, of which Rameshwar Jute Mills is a member, allotted certain loom hours to each mill and there was a condition that if for any reason a mill was not able to utilise its quota of loom hours, either due to shortage of raw materials or due to labour trouble or due any other cause it had the option of selling loom hou