Commission-agent sales and limitation rules clarified: full accounting is required for deeming independent transactions, and holiday filing may save revision.

Revisional authority could exercise suo motu power even though the assessee filed the revision petition, and the limitation objection failed because the last filing day fell on a holiday, allowing presentation on the next working day. A commission-agent sale could be treated as an independent sale under the deeming provision only where the agent failed to render a full account to the principal in respect of the transaction; mere non-credit of full realisations was insufficient. On that footing, the assessment treating the sales as separate transactions was held unsustainable and the orders were set aside.

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Issues: (i) Whether the revisional authority could entertain and act upon the revision petition, and whether the petition was barred by limitation. (ii) Whether the sale made by a commission agent could be treated as two independent transactions under the deeming provision because the agent had not credited the full realisations to the principal's account.

Issue (i): Whether the revisional authority could entertain and act upon the revision petition, and whether the petition was barred by limitation.

Analysis: The revisional power could be exercised suo motu, and the fact that the assessee moved the authority by a revision petition did not prevent the authority from acting on its own motion. The limitation objection also failed because the last permissible day for filing fell on a holiday, entitling the assessee to present the revision on the next working day.

Conclusion: The objections to maintainability and limitation were rejected against the Revenue.

Issue (ii): Whether the sale made by a commission agent could be treated as two independent transactions under the deeming provision because the agent had not credited the full realisations to the principal's account.

Analysis: The deeming provision applied only where the agent had failed to render a full account to the principal in respect of the transaction. Mere failure to credit the whole realisation to the principal's account was not enough. Since no finding was recorded that the assessee had failed to render a full account, the assessment was based on an construction of the statutory explanation.

Conclusion: The assessment treating the commission agent's sales as independent transactions was unsustainable in favour of the assessee.

Final Conclusion: The assessment orders were set aside and rectification was directed, with costs to the assessee.

Ratio Decidendi: A commission-agent sale can be treated as the agent's independent sale only when the agent has failed to render a full account to the principal in respect of the transaction; mere non-credit of full realisations to the principal's account is insufficient.

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